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Fast fashion, and faster fashion

Fast fashion, and faster fashion

On the face of it, they could hardly be more similar. Fast-fashion pioneer Asos (ASC) and fast-fashion upstart Boohoo (BOO) are both online apparel retailers who have leveraged – and in many ways driven – the move away from high-street fashion shopping to their own great profit. Asos was founded six years before Boohoo, and has enjoyed astronomical share price growth since its initial listing in 2001 for just 20p, but over the past year and a half it has seen its share price fall to as little as a third of its early 2018 highs of around 7,600p. Boohoo, meanwhile, seems to be going from strength to strength, with a strong sales performance driving earnings upgrades from analysts and acquisitions signalling a move into potentially lucrative new customer demographics. So what is causing the divergence?

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