ASOS has made a shock 'profit warning' announcement resulting in a major drop of share prices.
The online shopping giant has been forced to reduce its financial expectations for 2018 after a "significant deterioration" in sales over the last six weeks.
A statement released today explains that the retailer has "experienced a significant deterioration in the important trading month of November and conditions remain challenging".
The statement explaining the 'profit warning' has resulted in a major drop in share prices, with an estimated decrease of 35 to 40 percent.
Trading for September and October proved relatively successful and in line with planned predictions but November has suffered dramatically.
Black Friday and the major reductions that go in hand-in-hand with the massive online shopping day has been suggested as one of the reasons for the significant drop in profits.
ASOS chief executive, Nick Beighton, said:
"In fashion we are seeing an unprecedented level of discounting, certainly something I have not seen before, and that’s across the board".
Current predictions are that ASOS will finish the year with a 15 percent profit instead of the 20-25 percent figure that had previously been estimated.
One of the reasons behind the decline is that people are opting for cheaper items and expensive women's jackets and men's sneakers are becoming more difficult to shift, according to
The Guardian.
Although many believe Brexit has to take the blame for this development, financial experts say that other factors including "economic uncertainty" across a number of European markets also play a part.
