UK online fashion retailer ASOS warned on Thursday it would be less profitable this year due to higher promotional activity, the strong rate of growth in low-margin UK products and the hit from the strong pound.
In an unexpected trading update the group said on Thursday it now expected its operating margin for the current financial year to come in at around 4.5 percent from around 6.5 percent, due to strong sales in the UK, where its margins are generally lower.
Retail sales in the UK in the three months to the end of May were up 43 percent. International sales, which tend to sell at a higher margin, were up 17 percent, but these were hit by the strong pound.
(Source: CNBC)