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Asos's global growth potential still has much to offer investors

Asos shares are not cheap, but look worth paying up for, says Phil Oakley, as it continues to benefit from the shift from the high street to online
Asos's global growth potential still has much to offer investors

2020 saw Asos recover well from a disastrous 2019. It now needs to step up again – and there are good grounds for thinking that it can.

Since listing on Aim 20 years ago, Asos has been a resounding business success story and has handsomely rewarded its investors. It has created a market-leading online fashion brand for 20-somethings and taken it from the UK to the rest of the world. 

The track record of success and the huge potential for global growth has seen its shares become very richly valued, but it has not all been plain sailing for the company. Three profit warnings in 2018-19 were of its own making as its new warehouses failed to provide customers with what they wanted in the US and Europe, while a poor Black Friday in 2018 saw it slash prices afterwards to keep customers happy. Profits and the share price collapsed.

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