Market's view on ASOS
Published on April 2024
- Frasers Group’s investment strategy in ASOS has been unsuccessful, with an estimated loss of over £40 million on their shareholding.
- Frasers Group has increased its stake in ASOS to 27%, becoming the largest shareholder.
- Concerns are raised about ASOS’s profitability, with predictions indicating no profit until 2026 and ongoing financial worries due to substantial debts.
- Speculations suggest possible further dilutions or discounted funding for ASOS in the future.
- The potential for a takeover by Frasers Group is highlighted, noting their current 27% ownership.