Shares in British online fashion retailer Boohoo. com plunged by almost half after fierce discounts across the industry hit sales and forced it to slash full-year profit forecasts.
The company, which listed on the stock market in March, blamed price cuts by high street rivals looking to shift jumpers and coats following a warm autumn season for slowing demand in the run-up to Christmas.
Analysts said the firm may have also suffered from its weaker profile compared with more established rival ASOS , warnings of delayed courier deliveries in the run-up to Christmas and the fact it cannot offer shoppers a place to collect goods, with a “click and collect” option.
News of the profit warning also sent shares in larger rivals ASOS and Zalando down 2.2 percent and 5.2 percent respectively.
Boohoo said revenue growth in the second half of its fiscal year – which runs to the end of February – would now be well below market forecasts for a big boost from a marketing push launched in October.
– Reuters
