Boohoo looks to reassure investors after Asos warning
Boohoo scrambled to set itself apart from Asos on Monday after a shock profit warning from the online giant.
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As Asos downgraded its full-year expectations on the back of a weak November and heavy discounting, the fast fashion retailer sought to reassure its investors with a brief update in which it confirmed that trading remains strong, with record Black Friday sales. The group also said that it continues to trade "comfortably" in line with expectations.
But Boohoo shares fell anyway, down 12% at 161.85p at 0900 GMT.
Neil Wilson, chief market analyst at Markets.com, said: "If Asos is finding it tough out there, then just about every retail stock has problem. We knew the high street was struggling due to structural shifts, but Asos slashing guidance suggests things are even worse in the run up to Christmas than previously thought for the sector and the strife extends well beyond the high street.
"In short, online businesses have seemed immune but the warning from Asos today suggests they too are at risk from the cyclical slowdown. We must stress that the Asos warning is indicative of a cyclical slowdown rather than being suggestive of the structural problems facing the high street."