ASOS had a busy day today, announcing a profit warning, a new chief executive and chairman, and reporting that customers are returning items like never before.
The fast fashion house says profits for the year will be between £20 million and £60 million, far below previous guidance of £110 million to £140 million.
New CEO José Antonio Ramos Calamonte and chairman Jørgen Lindemann have a fight on their hands to turn around a business that was once a stock market darling.
Today the stock fell 290p, 25%, to 870p. Four years ago, the shares were worth about ten times that.
Like everyone else, ASOS warned that inflation and supply chain problems were hitting sales.
Chief operating officer Mat Dunn said: “What is now clear, based on the significant increase in returns rates that we have seen, is that this inflationary pressure is increasingly impacting our customers shopping behaviour. It is too early to tell for how long the current pattern of customer behaviour will continue.”
A profit warning in October led to the former departure of then CEO Nick Beighton. In the last three months, ASOS sales are up 4% to £988 million.
Ramos Calamonte is a former Zara boss.
