By Geoffrey Smith
Investing.com -- ASOS (LON:ASOS) shares edged higher in early trading on Friday as the U.K-based online fashion group upheld its full-year sales forecast despite a sales slowdown over the last month.
By 03:30 ET (07:30 GMT), Asos shares were up 1.2%, a little ahead of the FTSE 250 index, which was up 0.7%.
The company said it estimates that sales, adjusted profit before tax and net debt are all likely to be within the current range of market expectations.
However, it added that profit will be "around the bottom end of company guidance," with constant currency sales growth of around 2% and net debt of around 150 million pounds ($173 million)
"After having seen good growth in June and July, sales in August were weaker than anticipated," Asos warned. "This reflected the impact of accelerating inflationary pressures on consumers and a slow start to Autumn/Winter shopping."
August is the last month of ASOS' fiscal year.
It added that it "remains cautious about the outlook for consumer spending," and continues to "manage the business for the current environment," without adding any further detail.
ASOS shares have slumped to their lowest in over 12 years in recent weeks, on a combination of fears that the highest inflation in 40 years and a looming recession that the Bank of England expects to last for over a year will sap demand for its products.
The stock, once a market darling, has lost over 90% of its value since peaking in the early stages of the pandemic, when its online-only model allowed it to thrive while other fashion chains suffered from the closure of the physical stores.
The company swung to its first net loss in years in the six months through April. It reports full-year results on October 12th.