Ocado shares plunge as growth and margins fall
Sales growth slows in Q3 as company warns that profit margins are set to shrink
SHARES in online grocer Ocado suffered a slump of 12 per cent today after the troubled company warned that sales growth was tapering off and that profit margins were set to shrink.
Although gross sales were up by 16.9 per cent in the 12 weeks to August 7 at £148m, this was down from the 17.2 per cent growth recorded in the second quarter.
The company is under pressure after Waitrose, whose products it predominantly carries, relaunched its own home delivery service within the M25 in February of this year.
Ocado chief executive Tim Steiner said: "In spite of the tough economic environment, our sales are growing substantially and we remain focused on improving range, value and service for our customers."
Read a full report at the Telegraph.