Investors' faith in retailer Asos wanes

ASOS shares plummeted by more than 8% in early trading yesterday, exacerbating losses accumulated over several months as investors' faith in the retailer's recovery strategy has dwindled.

- AMBER MURRAY

The e-commerce company's share price has fallen by a third in the past month and has halved since the start of the year, with a 15% decline in the last five days alone.

Asos shares were trading at 233p per share early yesterday, a significant drop from the mid-pandemic high of 5,772p per share in April 2021.

Analysts attribute this decline to a post-pandemic downturn in the e-commerce sector, which has also impacted fellow retailers boohoo and Pretty Little Thing.

"The Covid boom sparked overinvestments across staff, stock and infrastructure that are still being unwound," noted Jeffries analysts Andrew Wade and Grace Gilberg.