Online fashion retailer ASOS’ (ASC) problems continue to pile up with the shares sliding on a damaging Sunday Times piece which left the equity down 73% year-to-date at a threadbare-looking 646.5p.

The article relayed that the troubled retailer has privately briefed City analysts that pre-tax profits for the year to August 2022 will be at the lower end of the already-downgraded £20 million to £60 million range.

Exposed to mid-market brands and a 20-something demographic being hammered by the cost-of-living crisis, ASOS also reportedly told analysts that sales growth in the new financial year is likely to be below consensus at 9.8%.

‘While it is customary to entertain pre-close chats’, said Shore Capital, ‘and the company stated that no non-public information was shared, we are concerned about the potential of selective disclosure.’

The broker added: ‘Whilst market expectations in aggregate have not necessarily been adjusted, we would be very worried about the basis for an orderly market in the group’s shares as discussions and research notes around forecasts were evident from deliberately selective conversations with analysts.’

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