Lightning never strikes twice, the saying goes. But sadly for Asos, that’s not the case in reality.
Lightning never strikes twice, the saying goes.
That’s as untrue metaphorically as it is in reality, as fashion etailer Asos has discovered.
Nine years on from the Buncefield explosion of 2005 which caused devastation to its nearby warehouse, Asos was last weekend hit by a fire at its Barnsley distribution centre which forced it to suspend trading.
The fear was that on Monday, when the market reopened, short-sellers might take advantage of the disaster. In the event such concerns were unfounded and at the time of writing Asos’s share price was up.
Damage was thankfully limited. Although 20% of stock held at Barnsley was damaged, that proportion could have been far worse. The building’s structure and technology were unaffected.
Brokers in the main left their forecasts and recommendations unchanged. As it puts the drama behind it and resumes trading, Asos’s efforts to drive performance following its profit warning earlier this month should continue relatively unhindered.