Should Retailer Shareholders Worry After ASOS Profit Warning?

A surprise profit warning from ASOS saw shares almost halve. With some worrying about lower margins, is this a sign of things to come for online retailers?

David Brenchley 17 December, 2018 | 11:20AM

ASOS, ASOS share price, online fashion, stock picks, Carmignac

It looks like a Christmas to forget for ASOS (ASC) and its shareholders, after a profit warning from one of the poster firms for the UK’s small-cap Alternative Investment Market almost slashed its market value in half.

And the carnage wasn’t confined to just one online fashion retailer. Fellow small-cap Boohoo (BOO) also slipped 10%, while Marks & Spencer (MKS) was the biggest faller in the FTSE 100, down 4%. Mid-caps JD Sports (JD.), Sports Direct (SPD) and others were also in the red.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ASOS PLC3,506.00 GBX1.18
Boohoo Group PLC264.48 GBX-2.15
JD Sports Fashion PLC612.60 GBX0.10
Marks & Spencer Group PLC98.22 GBX1.28
Sports Direct International PLC260.74 GBX2.41

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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