Asos shares lost almost a fifth of their value today after the retailer said it would commit more money to future growth plans.
New plans to invest in better warehousing in the UK and Germany and in IT, to cut delivery times and costs, will mean spending £68 million in the current financial year.
That is almost 25 per cent more than the £55 million the company originally planned.
The etailer is investing in long-terms plans despite the short-term hit on profits as high street retailers and overseas rivals improve their competitiveness online.
It said the plan would mean it could cope with a turnover of £2.5 billion, more than £1 billion above that previously guided. But that is expected reduce its operating margin from 7 per cent to 6.5 per cent in the year to August 31.
It is expected to hit £1 billion sales this year.
The shares fell as much as 17 per cent to £52.51. They were 10 per cent down at £56.94 at 3:45 pm today.
Analysts predicted that pretax profit could now be around 7 per cent lower than previously expected at £65 million.
Losses at its Chinese website, launched late last year, are expected to be £8 million. The group is finding it more difficult than it expected to get stock into the country. It has 3,000 at the moment which is lower than the 5,000 it expected which has affected sales.
Meanwhile, in its main UK distribution centre in Barnsley it wants to target 250 items per hour from its existing 70 which will require a more automated, systems-led processes.
Asos revealed today that sales in the second quarter of it financial year increased 26 per cent. That compared to the 33 per cent predicted by City analysts before today.
Losses at its Chinese website, launched late last year, are expected to be £8 million. The group is finding it more difficult than it expected to get stock into the country. It has 3,000 at the moment which is lower than the 5,000 it expected which has affected sales.
Meanwhile, in its main UK distribution centre in Barnsley it wants to target 250 items per hour from its existing 70 which will require a more automated, systems-led processes.
Asos revealed today that sales in the second quarter of it financial year increased 26 per cent. That compared to the 33 per cent predicted by City analysts before today.
Asos blamed currency fluctuations in Australia and Russia for the miss - part of its 'Rest of the World' division.
But it has also faced what one Australian newspaper described as a 'meltdown' at its Australian business following an IT glitch that left irate customers without orders and unable to communicate with customer service teams.
Russia and Australia have also been considering ways to increase the tax revenue from foreign etailers selling into their countries.
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