(Bloomberg) -The shares of ASOS PLC have dropped most in more than two years after the online fast fashion chain warned that the full year earnings will come to the bottom of expectations as it works on a complex turnaround plan. The British retailer sees adjusted earnings before interest, tax, depreciation and amortization to the bottom of its £ 130m lead ($ 175m) to £ 150m, according to a statement Tuesday. This compares with the consensus of the £ 140m analyst in a Bloomberg recording. ASOS also said that sales would be lower than expected, as it works to improve profitability. Shares of ASOS have dropped to 13% in the early trading in London, most on an intraday base since May 2023. amid the competition of Chinese fast fashion trend, Shein, ASOS turns under the CEO Jose Antonio Ramos Calamonte, it takes longer than expected, as the company focuses on reducing costs. The company has closed its Atlanta distribution center and serves US customers from its warehouse in Barnsley, England to cut costs. The retailer also reduced the stock of unsold clothing and wrote off an additional stock of £ 100m in November. During the summer, ASOs began the last phase of its transformation, trying to win buyers back with collaboration with Adidas and the expansion of the Topshop and Topman brands. “ASOS has treated the stock over and introduced a new commercial model, but the third leg of customer re -processing can take longer than expected,” Deutsche Bank analysts said in a note. Post-pandemic slump Asos shares have fallen more than 90% over the past four years when pandemic closures ended and returned copper to physical stores. Higher British costs also focused consumer spending on essentials rather than clothing. Like other online retailers, ASOS has struggled with a high rate of customer returns. In recent months, it has closed the accounts of copper that have returned a large amount of items, causing a setback. The rival Boohoo Group PLC suffered many of the same issues and reported a record loss last month, with CEO Dan Finley, calling it a ‘very challenging period’. Boohoo is considering selling his pretty little thing brand and assessing options for its warehouses in the US and Burnley, England. Earlier this year, Boohoo said it was reconsidered as Debenhams Group, the department store chain he bought in 2021, and transferred to a market model, which sells a series of third -party brands. (Update shares in the first paragraph, add context from ninth.) More stories like these are available on Bloomberg.com © 2025 Bloomberg LP
ASOs descend on poor earnings -prospects amid complicated overhaul
