ASOS Earnings Lowered and Turnaround Challenges

26 days ago

Chloe Melle

"ASOS saying its earnings will likely be lower or at least at the lower end of expectations. Sales would actually be lower than expected due to a turnaround plan that is taking longer than anticipated, while competition from Shein intensifies."

ASOS is signaling a more challenging near-term environment as its earnings guidance has been tempered. Although inventory issues have been resolved, the turnaround plan has not yet translated into higher sales, with competitive pressure from fast fashion retailer Shein contributing to a 9% drop in shares.