ASOS FASHION FLIES BUT ITS SHARES ARE A FLOP

ALMOST £570m has been wiped off the value of Asos after growth disappointed investors.

Despite racking up sales that many High Street retailers would envy, shares slid 10.5pc, or 680p, to 5820p.

Asos, which sells clothes to fashionconscious 20 to 30-year-olds, has been growing rapidly as traditional retailers such as Marks & Spencer, John Lewis and Debenhams struggle to adapt to changing fashion tastes.

The 18-year-old online firm recently overtook M&S in value following a steady rise in its share price. However, its latest results have seen it slip back, with a value of £4.9bn compared to M&S’s £5.1bn. Group revenues jumped 22pc to £824m in the four months to June 30 but analysts had been expecting a 25pc rise.

It reduced its guidance for full-year revenue growth to around 25pc.

George Salmon, equity analyst at Hargreaves Lansdown, said Asos still remained an attractive investment. ‘Online is winning the bricks versus clicks battle and Asos has a strong presence in several international markets,’ he said.