The online fashion retailer Asos admitted that troubles at its overseas warehouses had derailed its growth, leading to a third profit warning in seven monthsHedge funds have made an estimated paper profit of £150 million by shorting Asos during the last year after the online fashion retailer issued three profit warnings. Shares in the company fell by 65 per cent after investors took fright about the challenges of making money from selling clothes online. Nick Beighton, chief executive, said that there was still demand for its clothes but the business had run into logistic issues in Europe and the US. Hedge funds shorting Asos made about £35 million this week after the latest profit warning from the company, according to data from IHS Markit. Asos was founded in 2000 by Nick Robertson, 51, and floated a year later at 20p a share.

Source: The Times July 19, 2019 16:07 UTC