Boohoo reassures investors after Asos´profit warning

Friday, 06 June 2014
ANALYSIS_ British online retailer has reassured investors after its fashion peer Asos issued its second profit warning since March. Boohoo´s largest rival´s update sent other online apparel retailers´ stock to a rocky trade in London.

Asos shocked the market Thursday after it warned that its full-year profits would miss forecasts by 30 percent as it was forced to cut prices severely abroad to offset the strong pound.

In an attempt to calm down investors and avoid a major impact on its market value, Boohoo issued a brief yet direct message to the market, assuring it is trading “in line with expectations for the full year”. “trades in line with expectations” after Asos dip

" notes the weakness in its share price today. The company can confirm that it continues to trade in line with expectations for the full year to February 2015. Further detail in this regard will follow within the company's preliminary results and Q1 trading update announcement on 12 June," Boohoo assured in a note Thursday., which floated on the junior stock market in London (AIM) at 50 pence a piece in February, has seen its value severely affected since it started trading as a public company at 80 pence per share.

ASOS announcement wiped 1.2 billion pounds off its market value, with the e-tailer now forecasting profit for the year to come in at 45 million pounds, quite short of its former outlook of 65 million pounds.

Thursday's was Asos second profit warning since March, what generated some anxiety across investors, dragging down shares in similar firms such as Consequently, the Manchester-based firm its stock fall 4.5 pence to 45 pence. Likewise, SuperGroup lost 12 pence to a close of 1.098 pence.

Angela González Rodríguez

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