Spending plans see Asos shares slump despite rise in profits
Shares in online fashion firm Asos have fallen as worries over higher-than-expected spending plans overshadowed surging half-year profits.
The group saw its shares tumble as much as 12% at one stage despite reporting a 10% rise in pre-tax profits to £29.9m for the six months to February 28.
Investors baulked at plans to spend up to £250m boosting its infrastructure to support sales growth. The firm upped its spending guidance for the full-year for the second time in three months, now expecting capital expenditure of between £230m and £250m.
But results showed robust trading over its first half, with UK retail sales up 22% to £414.5m, while international sales lifted 28% to £716.8m on a constant currency basis.
The group added it notched up its highest number of website visits over the half year at over 1bn.