Stock spotlight: Supply chain issues weigh heavy but ASOS still good fit for 'patient investor'

ASOS shed 17.3% of its share price in two days

James Baxter-Derrington
clock • 4 min read

Despite an increase in pre-tax profits of 25% over the past year, a combination of senior departures, profit warnings and supply chain issues saw the ASOS share price tumble last week, although investors remain positive on the global online fashion retailer’s outlook.

From market open on Monday 11 October to its close on Wednesday 13 October, ASOS shed 17.3% of its share price, falling from £27.81 to £23. This continued the downward trajectory the firm has been on since its March 2021 peak, after which it has fallen more than 60%, according to data from FE fundinfo. Last week's decline was tied to the firm's full year results to 31 August 2021, which, despite bumper profits, warned that 2022 could see this number fall as much as 38%, citing Brexit and supply chain problems as key concerns. Fast fashion brands need to focus on ESG solutions Suppl...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Stories of the week: The FCA, Bank of America and Neil Woodford

Stories of the week: The FCA, Bank of America and Neil Woodford

Recession expectations, AI chips and Hargreaves Lansdown: The biggest stories from the world of investment and asset management this week

clock 17 April 2025 • 1 min read
7IM's Ben Kumar: Geographic location almost irrelevant in investing

7IM's Ben Kumar: Geographic location almost irrelevant in investing

'Vocation, not location'

Ben Kumar
clock 17 April 2025 • 3 min read
Compliance questions loom over Woodford's portfolio platform plans

Compliance questions loom over Woodford's portfolio platform plans

FCA authorisation and/or promotion issues

Cristian Angeloni
clock 16 April 2025 • 5 min read
Trustpilot