Everything you need to know about ASOS shares

Online fashion retailer ASOS experienced significant growth throughout 2020 amid the COVID-19 pandemic. Take a look at the ASOS share price performance, business model and recent acquisitions, and discover how you can speculate on where the stock is heading.

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ASOS shares: the basics

ASOS plc shares trade on the AIM market of the London Stock Exchange under the ticker ASC. It is a constituent of the FTSE AIM UK 50 index. As of February 2021, the company has 99.84 million shares outstanding and a market capitalisation of approximately £4.46 billion.

The price of ASOS shares are predominantly influenced by its earnings releases, as well as any news concerning the company, macroeconomic data, and the economic health of the UK.

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ASOS share price performance

Throughout 2020, ASOS shares outperformed the FTSE 100 index by approximately 77% - excluding any dividends. Although it’s share price did fall in the March 2020 equity sell off, ASOS’s business model has always been built around the internet – which put it in a good position as the coronavirus pandemic forced consumers to shop online amid stay-at-home measures.

Although the high street may see a renewed lease of life after COVID-19, it’s still likely that a lot of shoppers will continue to use online retailers more than they did before. This could see ASOS experience further growth in 2021.

View ASOS’s live share price now.

How to buy and sell ASOS stock

  1. Open an account
  2. Search ‘ASOS plc’ in platform
  3. Choose our CFD or spread bet market
  4. Decide whether to ‘buy’ or ‘sell’ in the deal ticket
  5. Enter your position

When trading ASOS stock, you’ll be buying and selling ASOS plc – the parent company of ASOS.com, as well as other brands like Topshop, Topman and Miss Selfridge.

You can speculate on the price of ASOS shares via spread bets and CFDs. Unlike traditional investing, you won’t ever take ownership of the underlying assets, which means you can go long or short – benefiting from rising and falling prices.

Spread bets and CFDs are also leveraged, so you can get full market exposure for just a small initial deposit – known as margin. While leverage can magnify your profits, it can also magnify your losses. This makes it important to have a risk management strategy in place before you buy or sell ASOS shares.

What is the ASOS business model?

ASOS’s business model is two sided: it functions as a platform, connecting fashion brands with online shoppers, and it generates product revenue from its own private labels.

ASOS collects its user’s data and provides each shopper with recommendations based on their personal styles. This technique of personalisation has attracted ever-growing numbers of users to the site, which in turn has brought in higher quality clothing brands.

ASOS also focuses on its customer service, to ensure brand loyalty in an increasingly competitive online retail space. This includes always adding new items and brands, customer support, next-day delivery and free returns.

More recently, ASOS has captured its ever-growing market share by delivering its own private labels, which are often more affordable than the other retail brands on offer. This provides cheaper options for customers, as well as another income stream for ASOS.

All of these factors have contributed to steady revenue growth for ASOS over the last five years, even amid the COVID-19 pandemic.

Year

Revenue (£, millions)

2016

1444.9

2017

1923.6

2018

2417.3

2019

2733.5

2020

3263.5

(Source: ASOS plc)

ASOS’s core customer base of twenty-year olds has grown by 41% on the ASOS platform in the first quarter of the 2021 financial year. Of its revenue, 37% comes from its UK domestic market, 31% from other European Union countries, 13% from the United States, and 19% from the rest of the world (with the biggest exposure to Russia and Australia).

Who owns ASOS?

ASOS was founded in 2000 by Nicholas Jon Robertson and Quentin John Griffiths in London. Griffiths has since moved on to focus on start-ups, while Robertson continues to hold a stake in ASOS and sits on the company’s board.

Asos PLC Directors

Name

Position

Mr. Nicholas Timothy Beighton

Chief Executive Officer

Ms. Hilary S Riva OBE

Director

Mr. Robert Bready

Product & Trading Director

Mr. Peter Wodehouse Williams

Non-Executive Director,

Ms. Karen Elizabeth Dind Jones CBE

Director

Mr. Adam Alexander Crozier

Chairman

Mr. Nicholas John Robertson

Director

Lord Waheed Alli

Chairman

Mr. Ian Dyson

Senior Independent Director

Mr Jonathan Damian Kamaluddin

Executive Director, International Director

Mr. Brian James McBride

Chairman of the Board/Director

Mr. Andrew Magowan

Company Secretary

Mrs. Karen Mary Geary

Director

Helen Jane Ashton

Executive Director, Chief Financial Officer

Mathew James Dunn

Chief Financial Officer

Mr. Luke Giles William Jensen

Director

Ms. Mai Rowenna Fyfield

Director

What brands do ASOS own?

On 1 February 2021, ASOS announced it had bought Topshop, Topman, HIIT and Miss Selfridge brands for £265 million from retail group Arcadia. While ASOS has taken on the brands and acquired the stock for a further £30m, it will not be buying the stores.

In 2019, the Arcadia brands collectively delivered total revenues of approximately £1bn. However, this figure fell to around £265m in 2020 due to the COVID-19 crisis – as brick and mortar stores were shut throughout the year, pushing sales online via partners such as ASOS.

For ASOS, this could mean that its investment of £295 million is an opportunity to grow the business after things ‘return to normal’. Shares in ASOS increased by 3.3% higher to £46.20 on the morning of the announcement.

ASOS’s competitors are also snapping up struggling high street brands as competition intensifies – Boohoo confirmed in January 2021 that it was in talks to buy Dorothy Perkins, Wallis and Burton brands, as well as agreeing to buy a slew of brands from Debenhams for £55m in January. Boohoo would also be opting not to take on its stores and revive the brands online.

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