The share price chart of online fast-fashion firm ASOS (ASC) is quite unnerving even for investors who don’t own the FTSE 250 stock.

Something has clearly gone very wrong since the start of the year, yet the news flow – such as it is – has been positive.

In mid-January, the firm announced that, thanks to its new commercial model’s success in reducing stock levels through FY23 and FY24, it would mothball its Atlanta distribution centre and serve its US customers from its Barnsley site and a smaller, more flexible US site.

As a result of the changes, the company expects an increase of between £10 million and £20 million in EBITDA from the start of the new financial year in August, although it will report £190 million of adjusting items ‘predominantly relating to non-cash fixed asset impairments’, resulting in a corresponding negative impact on reported profit.

In addition, Stockopedia data shows analysts have been raising their FY25 and FY26 net profit estimates over the last couple of months.

Yet Jefferies’ sales tracker for January and February shows both ASOS and Boohoo (BOO:AIM) revenue trending down around 20%, the same rate as in 2024, meaning ‘there is no sign of any benefit from weak comps (comparable sales) yet, as confirmed by Boohoo’s trading update,’ says the firm.

‹ Previous2025-03-20Next ›