Asos stuck in fast fashion’s slow lane

Asos is not the cool kid on the block any more. The online fashion retailer rose to dizzying heights in the 2010s but it has struggled to hold onto the next generation of 20-somethings, squeezed by cheaper fast fashion rivals such as Shein on one side, and trendy second-hand platforms such as Depop and Vinted on the other.

The company has been striving for profitability — reducing stock levels, placing stricter criteria on returns and emphasising more disciplined marketing. It now expects that it could return to profitability and growth next year. So is there a possible turnaround play for investors?

Asos, which was founded as “As Seen on Screen”, is an online fashion marketplace selling its own label clothes, worth around 40 per