Asos set to miss its targets

ONLINE retail hot-stock Asos will miss its full-year profit targets, blaming a boom in sales that left its warehouses unable to cope.

The internet retailer, which specialises in supplying styles worn by celebrities such as Sienna Miller, had hoped to make £1.5m in the year ending this month, but now says the figure will be in the region of £1.05m to £1.2m.

This is still double the previous year's profit, however. 'We got ahead of ourselves,' said chief executive Nick Robertson. 'We are absolutely flying but the warehouses just couldn't handle it.'

Asos, whose name stands for 'as seen on screen', slashed prices to clear winter stock in January and February, further boosting sales but also costs, and at lower margins.

'Every business experiences growing pains and, while this is disappointing, it's only a blip,' Robertson said. He said the supply problems would be sorted when Asos moves into a new 70,000 square foot warehouse in May. At present it is operating out of 16,500 square feet spread across four locations.

The group has appointed a general manager of distribution, previously head of supply chain at Hamleys, to strengthen the logistical team. The shares tumbled 8¾p to 56¼p.