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Asos shares the crash 40% as European retail chill hits spend online

December 17, 2018 Business 0 Views Shares in the UK online fashion retailer killed 40% on Monday after warning that weak sales during the decisive November month would hurt their annual profit for 2018. "The current background to economic uncertainty over many of our major The markets, together with a weakening of consumer confidence, have led to the weakest growth of online clothing sales in recent years, "he said in a statement. Asos (ASOMY) was considered to be one of the few retailers in Britain, where many sellers have fought with the transition to online shopping and an economic slowdown caused by Brexit's insecurity. Asos Wineries, which dried more than $ 1 billion from their market value, show that even savvy online retailers could fight for this holiday. "This is a potential warning sign for online resellers who have so far hithit remained relatively good compared to traditional [Main Street]says David Cheetham, chief market analyst at online broker XTB, in a listing to customers. Asos said Monday that conditions in major European markets like Germany and France were "considerably more challenging." But it also hit hard in Britain, where the Brexit saga has confused investors and the public. Some 80,000 British retail jobs disappeared in the first half, according to the Office for National Statistics. Official information about UK retail in November will be published on Thursday. Asos, which sells hundreds of brands and its own fashion traders, said it faced a "high discount" and advertising activity from the UK…

Shares in the UK online fashion retailer killed 40% on Monday after warning that weak sales during the decisive November month would hurt their annual profit for 2018.

“The current background to economic uncertainty over many of our major The markets, together with a weakening of consumer confidence, have led to the weakest growth of online clothing sales in recent years, “he said in a statement.

Asos (ASOMY) was considered to be one of the few retailers in Britain, where many sellers have fought with the transition to online shopping and an economic slowdown caused by Brexit’s insecurity.

Asos Wineries, which dried more than $ 1 billion from their market value, show that even savvy online retailers could fight for this holiday.

“This is a potential warning sign for online resellers who have so far hithit remained relatively good compared to traditional [Main Street]says David Cheetham, chief market analyst at online broker XTB, in a listing to customers.

Asos said Monday that conditions in major European markets like Germany and France were “considerably more challenging.” But it also hit hard in Britain, where the Brexit saga has confused investors and the public.

Some 80,000 British retail jobs disappeared in the first half, according to the Office for National Statistics. Official information about UK retail in November will be published on Thursday.

Asos, which sells hundreds of brands and its own fashion traders, said it faced a “high discount” and advertising activity from the UK competitors. It also said that consumer confidence in the country was “increasingly fragile”.

The retailer said it still surpassed UK competitors, but only because it offers more discounts than planned.

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Michelle Wilson analyst at Berenberg Bank said that its dependence on discounts indicates “bad conditions in the retail market “and” a weak consumer “.

Asos also misjudged its strategy on Black Friday, according to Wilson, offering discounts that lacked competition.

CEO Nick Beighton confirmed during a conference call with analysts on Monday that the Black Friday offer was “not strong enough”.


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