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Shares of the British Retailer ASOS Fell Down by Almost 40% Due to Deteriorating Forecasts
The sharp decrease in sales forced Asos to worsen the forecast for the financial year. As a result, the retailer’s shares fell down by more than 40% on the London Stock Exchange, which was already called as a nightmare before Christmas.
Trading in shares of Asos, an online seller of clothes and shoes, opened with a downfall of quotations on the London Stock Exchange on December 17. After the release of the company’s report on the deterioration of its performance in the financial quarter, which was completed on November 30, the cost of Asos’s shares fell down by more than a third – from £41.86 to £27.21 per share. The collapse of quotations continued, and at the minimum, the value of Asos’s shares fell down to £23.77 that is by 43% lower than the previous trading level.
As a result, Asos’s market capitalization dropped immediately by more than £1.4 billion – from £ 3.51 billion (as of December 14) to £2.1 billion.
According to the updated version of the forecast, Asos’s total revenue in the current financial year (it will complete in August, 2019) will grow by only 15%, as against by 20–25% as was previously expected