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Asos SOS

Asos's performance in recent months has called into question whether the group can reclaim its status as a growth darling
September 5, 2019

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

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