Asos share price drops by 3pc after Barnsley warehouse fire
After a fire at its Barnsley distribution centre, shares in online fashion retailer Asos dropped by more than three per cent this morning as trading resumed after the weekend.
The warehouse fire saw the site closed for orders this weekend, and despite being "fully insured for loss of stock and business interruption" the company's stock has taken a hit.
At pixel time, Asos shares had moved slightly higher, trading only around two per cent lower at around 2,700p.
Update: At 10.15am Asos shares had more than recovered to trade 0.1 per cent higher than their previous close, at approximately 2,750p.
Asos finally began taking orders again at 2.00am today. Asos said in a statement that "none of the technology, automation or structure of the building has been affected by the fire". South Yorkshire Police are treating the incident as deliberate and have started a criminal enquiry.
The retailer estimates that around 20 per cent of its total stock at the site has been compromised by fire damage and the sprinkler systems, or around £22m. For the time being Cantor retains its "hold" recommendation on Asos stock, while reducing its target price from 3,500p to 2,500p.
Asos stock has already suffered this year, battered by two profit warnings and losing more than half of its value since 2014 began. Cantor reiterated its view that the retailer is likely to suffer a third in the lead up to the autumn/winter season.