ASOS shares gain 80% year-todate on growing turnaround hopes

The website for fashion-loving 20-somethings has rallied hard on hopes of better news flow ahead

While shares in ASOS (ASC) are down almost 90% on a five-year view, the once-mighty online fast fashion retailer has rallied 80% so far this year amid a broader retail sector bounce-back driven by the lessening risk of an economic hard landing.

ASOS reported a ‘significant improvement in profitability’ with its Christmas trading statement on 12 January, which helped to reignite investor interest following a disastrous period for the website for fashion-loving 20-somethings, whose shares cratered as competition, slowing sales growth, warehouse issues and supply chain problems conspired to drive earnings downgrades.

Now, investors are hoping ASOS’ ‘Driving Change’ commercial and turnaround strategy under a new management team led by CEO José Antonio Ramos Calamonte, which includes a £300 million cost savings plan, combined with fading margin headwinds,