Sector movers: ASOS, N Brown drag retail stocks lower
A profit warning from online fashion group ASOS and an underwhelming statement from sector peer N Brown ensured that UK-listed retail stocks were firmly in negative territory on Tuesday.
ASOS
356.80p
16:49 19/04/24
Beale
5.87p
16:55 01/04/15
Brown (N.) Group
14.17p
16:55 19/04/24
Debenhams
1.83p
15:45 08/04/19
FTSE 100
7,895.85
16:59 19/04/24
Marks & Spencer Group
245.80p
17:05 19/04/24
Next
8,774.00p
16:40 19/04/24
ASOS's stock fell as much as 16% after the company warned that profits in the year to August 2015 would be at a "similar level" to the year just finished.
"Not what investors want to hear from what was a darling among growth stories, after an already significant 70% re-rating from all-time highs in March," said Mike van Dulken, head of research at Accendo Markets.
While pre-tax profit in the financial year just gone will be in line with market expectations of around £45m, next year's profits will be affected by "significant investments" in international pricing and its logistical infrastructure and technology platform, ASOS said.
A wave of brokerages moved to slash their target prices for the stock on Tuesday, including Numis, JPMorgan Cazenove, Cantor Fitzgerald and Peel Hunt.
ASOS's share price was down 8% at 2,230p by 14:50 and now trades over 60% lower since the start of the year.
N Brown was trading 4.4% lower at 387.4p after the home-shopping company said first-half sales were down 0.6%.
The company blamed a reduction in non-core ranges in the Home & Gift division, phasing adjustments in the Simply Be & JD Williams fashion ranges, and lower marketing spend in catalogues.
Others in the online retail sector such as Boohoo.com and AO World were suffering losses in London on Tuesday.
High street chains such as Next, Debenhams, Marks & Spencer and Beale were also lower.
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