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PRIVACY
Retail & Consumer

ASOS surges after turnaround from string of profit warnings

The company plunged in value after it warned on profits in December 2018 and July 2019, as it failed to live up to lofty expectations.

Asos investors are expected to cheer surging revenue as the online retailer looks to bounce back from a string of profit warnings.

Investors in the retailer have had a reality check over the past 12 months, watching shares in slide by more than 50%.

The company plunged in value after it warned on profits in December 2018 and July 2019, as it failed to live up to lofty expectations.

However, the company is still expected to post double-figure sales growth in its full-year results announcement on Wednesday October 16 as customers continue to spend online in favour of the high street.

Analysts have forecast that Asos will report a 12% jump in revenues to £2.7 billion for the year to August.

For the new financial year, analysts are forecasting 15% sales growth to reach £3.1 billion for the year.

The retailer has forecast that it will post a pre-tax profit of between £30 million and £35 million, after around £50 million in restructuring and transition costs.

It is expected to deliver a significant decline on profits from last year, when it delivered a pre-tax profit of £102 million.