ASOS shares have plunged by 30% after it issued a second profit warning in three months.
The UK’s online fashion retailer blamed the strength of the pound, which hurt overseas sales and forced it to launch a series of promotions.
International revenues in the three months to the end of May grew by just 17%, against 48% a year earlier.
Chief executive Nick Robertson admitted the retailer’s performance was “not what we had hoped for”.
The pound has risen 10% in value over the last year.
ASOS cut its forecast on profit margins to 4.5% from 6.5% on a sales target of £1 billion ($1.6 billion) for the current financial year.
ASOS shares have plunged by 30 percent after it issued a second profit warning in three months
That would imply a fall in profits to £45 million ($72 million) from a previous forecast of £65 million ($105 million).
ASOS, which achieves a high proportion of revenues from womenswear, recently launched a series of promotions.
These normally represent 3% of sales but rose to 8% in its third quarter.
But the discounts were not enough to offset the decline in its overseas sales, which account for 60% of the retailer’s total revenues.
ASOS warned in March that the costs of new warehousing in the UK and Germany, as well as start-up expenses in China would hit earnings.
Half-year pre-tax profits fell 22% to £20.1 million ($32 million).
Nick Robertson said sales in the three months to the end of May were strong, up 25% across the group and 43% in the UK.
But overseas growth has been slowing in each quarter for the past year.
US sales were up 17% compared with 59% a year ago, while sales growth across Europe of 37% compared with a 56% rise a year earlier.
For the rest of the world, sales slowed to a trickle of 1% compared with 38% the year before.
Nick Robertson said the result was a higher proportion of sales came from the UK and Europe, where margins are lower.
ASOS, which stands for As Seen on Screen, is targeting annual sales of £2.5 billion ($4 billion).
It reported total sales of £754 million ($1.2 billion) in its last set of full year results to the end of August 2013 a rise of 40% on the year before.
Its share price soared to 7111p earlier this year, more than doubling the company’s value on the year before, but has since slumped amid profit concerns.
Nick Robertson said: “Whilst our profit performance for this financial year is not what we had hoped for due to an unusual combination of factors, our accelerated investment in technology and infrastructure to support our £2.5 billion [$4 billion] sales ambition is progressing.
“We are totally focused on rolling out the Asos business model globally as the world’s leading online fashion destination for 20-somethings.”
Kate Middleton recently stepped out in a sale navy blue dress from high street brand ASOS.com.
Kate Middleton, 31, chose the navy knee-length dress as she shopped for curtains and drapes to decorate her unborn child’s nursery in Chelsea last week.
Kate Middleton recently stepped out in a sale navy blue dress from high street brand ASOS.com
The £17.50 ($27.50) dress was originally priced at £25 ($39), and the thrifty royal teamed it with a pair of her favorite £80 Pied a Terre wedges, creating a simple, stylish look that mothers-to-be are sure to rush to copy this summer.
The viscose dress comes in sizes 6-18 and three different colourways. It features an elasticated waist and is designed to grow with an expanding stomach, making it even better value for money as it will last for the duration of a pregnancy.
Kate Middleton wears a £17.50 maternity dress from online fashion site ASOS.com
It’s the first time Kate Middleton has been spotted in a maternity outfit by the retailer. Previously she has worn pretty Topshop dresses or customized designer pieces by pricier labels including Emilia Wickstead, Jenny Packham and Tara Jarmon.
ASOS.com’s maternity line features hundreds of items including on-trend dresses like Kate Middleton’s, tops, skirts, slogan T-shirts, jeans and swimwear.
The collection, created by the in-house design team, is described as allowing mothers-to-be to “stay chic throughout your pregnancy. Flattering your bump with gorgeous maternity dresses, jeans, tops, trousers and more, cleverly designed to accommodate your new curves’. It claims to ‘combine the stylishness of the mainline collection with pregnancy-friendly features such as soft ruching, adjustable fastenings and flexible waistbands, the perfect fusion of fashion, comfort and a flawless fit”.
Celebrity fans of the off-the-peg pregnancy styles include The Saturdays’ Frankie Sandford and Rochelle Hulmes and Fearne Cotton.
Kate Middleton is known for her eclectic wardrobe, whoch features both haute couture and high fashion, and her ability to mix the two on and off duty has earned her style plaudits from around the world.
After First Lady Michelle Obama wore a red and white check dress by online fashion retailer ASOS.com last year it quickly became a sellout.
Now fashionistas who missed out stealing Michelle Obama’s style the first time round can get their hands on the dress again as it has gone back on sale today.
The cotton skater dress is back in stock and currently available to buy for the bargain price of £55 ($85).
Michelle Obama, who regularly tops lists of the world’s best dressed women, has worn the sleeveless dress herself on more than one occasion.
Then last August when Michelle Obama joined her husband on the campaign trail as he sought re-election, she opted for the ASOS number again, this time wearing it with a wider black belt and ballet flats.
As if endorsement from the First Lady wearing it wasn’t enough, ASOS got even further free advertising when an image of Michelle Obama while wearing the dress while hugging Barack became the most shared picture in history on social networks.
After First Lady Michelle Obama wore a red and white check dress by online fashion retailer ASOS.com last year it quickly became a sellout
Barack Obama’s campaign team posted the image that was taken over the summer on his Twitter and Facebook accounts when it was announced he had won another term as President, along with the caption “another four years”.
The president’ss online campaign manager told Time Magazine the picture was chosen because it summed up the “elation, relief and joy” they were all feeling at that historic moment.
The picture was then retweeted 816,000 times on Twitter shared more than 4 million times on Facebook – breaking records for both social networks.
ASOS was launched in 2000 with the aim of helping twenty-somethings replicate the style of the stars at affordable prices. Now more than a decade on, its success means they’re now setting the trends as well as following them.