Asos (ASC) was one of the pioneers of UK online fashion retail, challenging the dominance of the high street and paving the way for the 'omni-channel' models now so ubiquitous among formerly bricks-and-mortar retailers. However, it has started to look as though the fast-fashion group has lost a step, and after repeated profit warnings and a slowing growth rate, we feel it's time to re-evaluate the case for owning the shares.
IC TIP:
Sell
at
2380p
Tip style
Sell
Risk rating
High
Timescale
Medium Term
Bull points
Strong historical returns on capital employed
Amazing growth record
Bear points
Repeated profit warnings
Analyst downgrades
No dividend payment
Very high PE ratio