(Bloomberg) -- Asos Plc warned that annual profit fall below expectations as the U.K. online fashion retailer’s sales are held back by distribution problems.

• Pretax profit is now expected to be in a range of 30 million pounds to 35 million pounds ($37 million to $44 million), as much as 5 million pounds below previous guidance.

Key Insights

• The latest warning shows that Asos is still struggling to get to grips with operational issues that have plagued it since last year.
• Asos has been struggling to keep up with other online fashion chains targeting young shoppers, especially Boohoo Group Plc, which has linked its marketing to reality TV series “Love Island.”
• The company said that “embedding the change from the major overhaul of infrastructure and technology” in U.S. and European warehouses has taken longer than expected, affecting stock availability.

Market Reaction

• The shares have fallen 55% over the past 12 months.

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• Read the statement here
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To contact the reporter on this story: Eric Pfanner in London at epfanner1@bloomberg.net

To contact the editor responsible for this story: Eric Pfanner at epfanner1@bloomberg.net

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