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Asos lowers growth forecast

Online retail giant Asos has lowered its growth forecasts, as a sluggish November dented sales.

While revenues during the three months to 30 November 2018 grew by 14% to £656m, the retailer reported that sales in November were “significantly behind expectations” from a sales and cash perspective.

As a result, sales growth for the full financial year to August 2019 is now anticipated to be around 15%, down from a predicted rise of 20-25%. EBIT margin expectations have also been revised down to 2% from 4%.

In a statement, Asos blamed the poor November sales on current economic uncertainties. “The current backdrop of economic uncertainty across many of our major markets together with a weakening in consumer confidence has led to the weakest growth in online clothing sales in recent years.”

Last week, Sports Direct owner Mike Ashley said that November 2018 had been the “worst November for retailers in living memory”, and value womenswear retailer issued a profit warning, citing poor sales around Black Friday on 24 November. 

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