ASOS has become a popular online fashion site over the past few years.
Shopping site ASOS are predicting their profits will take a big hit in 2022.
They expect profits to fall by almost 40 percent due to a number of reasons.
One of those is higher freight and labour costs as the UK struggles with Brexit changes.
They say they will likely endure a delay in the supply chain in 2022 as well.
Nasty profit warning (and CEO departure) at ASOS is worth a squint. Co mentions rising costs & distribution issues. Wraps them up as ‘notable headwinds’ & says profits could be down as much as 40% from prior forecasts
— Mark Brumby (@brumbymark) October 11, 2021
Earlier this year, shares in ASOS fell by over 10 per cent.
Market expert Neil Wilson says the company have problems maintaining sales growth.
"Covid, maybe a bit to blame," Wilson said. "A lot of sales are driven by these event led fashion sales."
Wilson cited the absence of music festivals as a big loss for companies like ASOS.
ASOS was founded in 2000, with over 850 brands being sold on their website.
