Online fashion group Asos’s profit warning spreads Christmas retail gloom in UK
London — Online fashion group Asos fuelled a Christmas crisis in Britain’s retail industry with a profit warning highlighting a major downturn in trading in November, sending its shares 39% lower and unnerving rivals. The warning from Asos, the shares of which fell close to a four-year low, shows that even previously high-flying online-only clothing retailers are not immune to a deterioration in consumer sentiment. Stocks in other British clothing groups fell on fears of poor trading before Christmas, which is when they do much of their business. Marks & Spencer was down 2.8%, Next slipped 3.4%, Debenhams lost 6.5% and Primark owner AB Foods shed 2.2%. Shares in direct rival Boohoo fell 11%, despite it saying it is trading in line with expectations, while Germany-listed Zalando was down 14%. Britain’s retailers had been hoping Christmas would revive spending after a torrid year in which a string of store groups have gone out of business or announced shop closures. But with the secto...
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