Asos shares traded near a 12-year low as investors worried about the impact the cost of living crisis was having on fast-fashion retailers.

FTSE 250 businesses fell 2.6%, or 18p to 667p, after a weekend report that they informally told city analysts that their annual profit to the end of August would be on the lower end of expectations Did.

In June, the company forecast an annual profit of between £20m and £60m, well below initial estimates of £110m to £140m.

Victims of fashion: Asos fell 2.6% over the weekend after city analysts unofficially reported earnings were at the lower end of expectations.

The reason for the downgrade was the large number of customer returns. Asos also warned analysts that next year’s sales growth is likely to fall below market expectations of 9.8%.

An anonymous analyst said he was “a little apprehensive” about how the company is managing expectations.

Meanwhile, Shore Capital analyst Eleonora Dani said she was concerned about an orderly market in Assos shares after evidence the firm was having “prudent and selective conversations with analysts”. said it does.

She added: “We take a very bleak view of the possibility of such behavior. We don’t care about reality.”

Reports of shrinking forecasts are even worse news for Asos. Asos was recently undermined by a series of negative updates, including the resignation of its financial chief, a regulatory investigation into its “green” claims, and complaints from suppliers. Canceled orders.

Earnings projections may also make investors increasingly concerned about the deteriorating prospects for retailers.

Sentiment appeared to weigh heavily on the sector as a whole, with shares of rival Boohoo falling 2.3% (1.03p) to 43.17p.

Stock Watch – Ashtead Technology

Ashted Technology Shares briefly traded near record highs after announcing it had acquired a Norwegian company that specializes in subsea dredging.

The London-listed equipment rental company bought WeSubsea in a deal worth £5.6m to strengthen its position in the subsea market last year.

Ashtead Tech reported a profit of £7.6m in the six months to end June, up from £3.9m a year ago. By the close of trading yesterday, however, the stock had fallen 0.2%, or 1p, to 260.5p.

Both online and high-street retailers are under increasing pressure as cost-of-living pressures force people to cut back on spending on non-essential items such as new clothes.

The FTSE 100 rose 0.09% (6.24 points) to 7287.43 while the FTSE 250 fell 1.19% (223.54 points) to 18629.68.

Markets broaden in Europe after Russian state energy giant Gazprom shuts down main Nord Stream 1 gas supply, largely ignoring Liz Truss election as party leader and prime minister They seem to be paying more attention to the energy crisis. Pipeline indefinitely last weekend.

Hargreaves Lansdowne analyst Susannah Streeter said the shutdown was a “worst-case scenario” for European leaders and that Russia was using its energy supply as a “big weapon” in the Ukraine war. He said it seemed to show

UK natural gas prices soared by more than 20% following the closure of a gas pipeline, and oil prices soared, with Brent crude topping $96 a barrel.

As a result, energy giant shares rose, with Shell rising 1.03% (24p) to 2348p and BP 2.1% (9.65p) to 463.35p.

The big miners, many of whom make most of their revenue overseas, have been among the biggest blue-chip performers on the back of the weaker pound.

Glencore up 4% (18.25p) to 471.5p, Antofagasta up 1.8% (19.5p) to 1121p, Anglo American up 0.6% (17.5p) to 2769p and Rio Tinto 0.7% (32 pence) increased. , up to 4732.5p.

Animal health company Decla Pharma has reported a significant increase in revenue after demand surged after pet ownership surged during the pandemic.

The company posted a profit of £96m for the year to the end of June, an increase of 16.2% year-on-year, with revenue rising 13.8% to £682m.

However, the share price fell 10.6%, or 370p, to 3126p. This is what eToro analyst Adam Vettese attributed to concerns about the company’s “high valuation.”