Asos share price plummeted this morning following news of a poorer than expected sales growth for the three months ended August, with a warning that profits will not grow during the next financial year.
Shares fell by 13.7 per cent to 2,092 pence on Tuesday, compared to Monday's value of 2,382 pence.
The online fashion retailer said although UK sales increased 33 per cent, international sales only rose six per cent during the time period. Year-on-year, retail sales grew 15 per cent.
The reason for the poor international performance was a strong pound – this forced it to slash prices in international markets in order to maintain customer loyalty.
Additionally, Asos lost between £25m and £30m of sales following a warehouse fire at its depot in Yorkshire in June.
In the coming year it intends to focus on international growth, according to chief executive Nick Roberts. “In the new financial year we'll make significant investments in our international pricing and proposition, as well as in our logistical infrastructure and technology platform,” he said.
He added profits are expected to flatline: “As a result, we expect profit before tax for the year to 31 August 2015 to be at a similar level to 2013/14.”
ASOS has experienced a continuous decline in share price since the start of the year.