LONDON (Reuters) - ASOS (L:ASOS) missed forecasts for sales growth in its latest trading period and said full year growth would likely be at the lower end of its 25-30 percent guidance, sending shares in the British online fashion retailer sharply lower.
Though it still expects to meet analysts' profit forecasts for the 2017-18 year its shares, up 13 percent over the last year, fell as much as 9.5 percent in early trading.
ASOS, which is listed on London's junior AIM market, has a forward price-earnings ratio of 67, one of the highest in the sector, giving little margin for error.
Its market capitalisation of 5.47 billion pounds ($7.23 billion), at Wednesday's closing price, is 400 million pounds higher than that of retail stalwart Marks & Spencer (L:MKS).
While ASOS and online peer Boohoo (L:BOOH) continue to report robust sales growth, Britain's traditional clothing retailers such as M&S, Debenhams (L:DEB) and House of Fraser are closing stores.
ASOS, which sells fashion aimed at 20-somethings, said total retail sales rose 22 percent to 802.7 million pounds in the four months to June 30.
That was below analysts' average forecast for growth of 25.8 percent and the 27 percent growth it reported in the first half.
UK sales rose 23 percent and were up 21 percent in ASOS' overseas markets.
The firm's retail gross margin rose 130 basis points, which it said was "ahead of plan".
In addition to maintaining its guidance for full year 2017-18 sales growth of 25-30 percent, albeit towards the lower end of that range, ASOS said it expected pretax profit in line with analysts' average forecast of 101 million pounds, up from 80 million in 2016-17.
"Whilst the sales line was slightly softer than expected, due in part to infrastructure developments in the U.S....there is no change to forecasts given the gross margin performance," said analysts at Shore Capital, who hold a "buy" rating on the stock.
Chief Executive Nick Beighton said he was pleased with the way ASOS had traded over the last four months. "We are on track with our plans for the year," he said.
He said trading since June 30 was going well, particularly full price sales.
"We remain confident of delivering another year of strong growth," he said.
ASOS reiterated mid-term guidance for revenue growth of 20-25 percent and an operating margin of about 4 percent.