To say that investors have lost confidence in Asos may be something of an understatement: its share price has plummeted since April 2021, to the tune of about 90 per cent. The stock resembles a playground slide, dotted with small cliffs that correspond to profit warnings, news of a slump in sales, or lowered guidance. In April 2023, its stock was even shorted by Matthew “Dark Destroyer” Earl, who placed a £4m bet on the e-tailer .
For a company which once revolutionized the online e-commerce market for young shoppers, it’s an unfortunate state of affairs. After a meteoric rise in the 2010s, Asos was one of the only shops in town with the experience and capability to supply the nation’s suddenly ballooning demand for online shopping during the Covid lockdowns. The end of that boom, plus widespread tightening of post-pandemic belts, sent investors away as quickly as they’d come in 2020.
However, Asos hasn’t just seen reduced sales – understandable with Brits spending less on online shopping post-pandemic – but reduced historical and forecast market share, too. Shein is expected to overtake ASOS as the UK’s sixth largest apparel retailer by 2027, while ASOS is expected to fall to 10th place, according to GlobalData . “Shein’s winning combination of highly competitive prices and omnipresent social media marketing will allow it to overtake UK competitor ASOS,” Louise Deglise-Favre, Apparel Analyst at GlobalData said earlier this year.
Shein doubled its pro.