Much as expected following the fire at its distribution centre, ASOS sales have slowed. But that is not the only underlying reason. The strong £ has seen sales from many overseas countries fall. In Australia, where it is suggested that ASOS has around AUD 200 million annual sales, the dollar has dropped 5.3 per cent against the £, which coupled with ASOS price increases of around 20 per cent have made it far less competitive than it had been.
For the quarter to August 31st sales increased by just 15 per cent, falling below forecasts and resulting it it missing one of its major milestone targets. The business has also invested heavily in new technology to support its growth plans. Full year results are expected to be disappointing.
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