Asos chief executive Nick Beighton and chairman Adam Crozier have purchased thousands of shares in the online fashion retailer in the aftermath of its profit warning this week.
In a show of confidence in the business, Beighton spent £99,700 buying 3645 shares for £27.35 each, while Crozier bought his first shares in Asos, spending £100,200 on 3750 shares for £26.71 each.
Those prices come at a huge reduction to the retail giant’s closing price of £41.91 on Friday, and after the online fashion retailer issued an unscheduled trading update on Monday that contained a profit warning and reduction to its forecasts for the full year.
The warning saw £1.3 billion wiped off Asos’ valuation, with shares dropping almost 40 per cent on Monday.
Shares in Asos fell 0.5 per cent by market close on Tuesday, but were down over 60 per cent since the beginning of the year.
In the trading update on Monday, Asos said that for the first three months of the financial year it had seen a sales growth of 14 per cent but “experienced a significant deterioration in the important trading month of November and conditions remain challenging”.
It has now reduced its expectations for the current financial year, expecting sales growth of 15 per cent – down from projected figures of 20 per cent to 25 per cent.