How to trade ASOS stock: a complete guide
Learn all about ASOS, with information on the company’s history and share price journey, its share trading hours, and how to trade ASOS share CFDs with Capital.com.
What is ASOS?
ASOS is a UK-based online fashion retailer specialising in trendy and affordable clothing, accessories, and beauty products. Founded in 2000, ASOS initially focused on selling fashion inspired by celebrity styles (As Seen On Screen) but has since evolved into a global e-commerce platform catering to young adults.
ASOS stock: key points for CFD traders
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Stock information: ASOS is listed on the main market of the London Stock Exchange (LSE) under the ticker ASC.
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Business model: the company operates a direct-to-consumer model, selling its own branded products alongside third-party labels.
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Market factors: ASOS’s stock performance is influenced by consumer spending trends, economic conditions, supply chain dynamics, and e-commerce sector growth.
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Competitors: it competes with Boohoo, Zalando, and Shein, among others.
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Recent challenges: ASOS has faced supply chain issues, margin pressures, and shifts in consumer behaviour, impacting its stock volatility – potentially creating trading opportunities.
What is ASOS’s share price history?
ASOS’s share price has experienced dramatic fluctuations since its early days as a publicly traded company. The fashion retailer debuted on the London Stock Exchange’s AIM market in 2001, with shares initially trading at just a few pence. Over the years, ASOS established itself as a dominant online fashion retailer, seeing explosive growth in both revenue and share price.
Early growth and e-commerce boom
ASOS benefited from the rapid expansion of online shopping in the 2010s. By 2013, its share price had climbed above £50, as strong sales growth, international expansion, and a loyal customer base fuelled investor optimism. At its peak in March 2018, ASOS shares reached an all-time high of around £77, driven by consistent revenue growth and an aggressive push into global markets.
Supply chain struggles and market pressures
However, by late 2018, ASOS encountered challenges. A profit warning in December shocked investors, as rising costs and logistical issues dented margins. This caused the share price to plummet by nearly 40% in a single day, falling from around £50 to £30. The turbulence continued into 2019, as ASOS struggled with warehouse inefficiencies, rising return rates, and heightened competition from fast-fashion rivals.
Pandemic boost and post-covid decline
Like many e-commerce companies, ASOS saw a pandemic-fuelled surge in demand in 2020, with shares rebounding to around £58 as lockdowns accelerated online shopping. However, as economies reopened and consumer spending shifted back to in-store retail, ASOS’s momentum faded. By late 2021, the share price had fallen to below £20, as cost pressures, supply chain disruptions, and weakening demand hit earnings.
2022 crash and restructuring efforts
The downturn intensified in 2022, with ASOS shares plunging below £5 – a far cry from their highs just a few years prior. Inflationary pressures, slowing consumer spending, and excess inventory weighed on the business. Investors also reacted negatively to leadership changes and a strategic overhaul aimed at cutting costs and improving profitability.
In February 2022, ASOS moved from AIM to the Main Market of the LSE in a bid to enhance liquidity and attract a broader base of institutional investors. However, the transition coincided with worsening market conditions, limiting any immediate positive impact on the stock’s performance.
Signs of recovery in 2023 and beyond
ASOS took steps to stabilise its operations in 2023, focusing on inventory management, cost-cutting, and improving profitability. These efforts, coupled with a rebound in online retail, helped shares recover to around £10 by early 2024. While ASOS remains far from its peak, a leaner business model and renewed focus on profitable growth have led to cautious optimism among investors and traders.
Past performance is not a reliable indicator of future results.
What factors might affect the ASOS live share price?
ASOS’s share price can be influenced by a variety of fundamental factors, both sector-specific and broader economic trends. Here are some key elements that traders should monitor.
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Consumer spending and economic conditions: ASOS operates in the fast-paced world of online retail, making it highly sensitive to shifts in consumer spending habits. Economic downturns, inflation, and changes in disposable income can significantly impact demand for fashion items. During periods of economic uncertainty, discretionary spending often declines, which can weigh on ASOS’s sales and share price.
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Supply chain and inventory management: efficient logistics and inventory management are crucial for ASOS’s profitability. Disruptions in supply chains, rising freight costs, and surplus stock can lead to margin compression and investor concerns. Past instances where ASOS struggled with stock mismanagement and operational inefficiencies have resulted in sharp share price declines.
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General financial performance/earnings reports: ASOS’s quarterly earnings releases are key events that can drive share price movement. Investors closely analyse revenue growth, profit margins, and cost efficiency. If results exceed expectations, the stock may rally, while weak financials – especially lower-than-expected sales growth or guidance – can lead to sell-offs. Financial guidance along with market analysis during this key period can help you understand progress and future outlook.
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Competition and market positioning: ASOS competes with Boohoo, Zalando, Shein, and traditional retailers expanding their online presence. Market share gains or losses can influence investor sentiment. The ability to differentiate through pricing, exclusive brands, and fast delivery services plays a crucial role in maintaining ASOS’s appeal.
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Shifts in fashion trends and consumer preferences: ASOS thrives on staying ahead of fashion trends. Changes in consumer behaviour, sustainability concerns, or a decline in demand for its core styles could impact sales. The company’s ability to quickly respond to trends and maintain engagement with its audience is vital for long-term growth.
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Currency fluctuations and international exposure: ASOS generates a significant portion of its revenue from international markets. This makes the stock sensitive to exchange rate fluctuations, particularly movements in the British pound against major currencies like the euro and US dollar. A weaker pound can boost overseas earnings when converted back into sterling, whereas a stronger pound can reduce profitability.
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Regulatory and ESG factors: The retail industry is increasingly under scrutiny for ethical sourcing, sustainability, and worker conditions. ASOS has faced criticism in the past for labour practices in its supply chain, and any negative press, regulatory action, or ESG concerns could impact investor confidence and share price performance.
What are ASOS’s stock trading hours?
ASOS’s stock trading hours are Monday to Friday from 8:00am to 4:30pm (UK time) based on its listing on the London Stock Exchange.
If you choose to trade CFDs, you can follow the ASOS stock performance in real time with the comprehensive ASOS share price chart.
Monitoring the company’s activity can help you to keep an eye out for any key fundamental or technical events that may affect short-term movements in the share value.
ASOS trading strategies
You can use basic strategies like trend, breakout, and range trading to navigate ASOS share price movements. Trend trading follows ASOS’s broader direction, such as long-term declines driven by shifting consumer spending or upswings after strong earnings. Breakout trading targets price moves beyond key resistance or support, often seen after major company updates. Range trading focuses on ASOS’s repeated price fluctuations, common when the stock stabilises between earnings reports.
Technical indicators like RSI and MACD help identify trends, while fundamental factors such as earnings results, retail sector performance, and consumer sentiment shifts play a key role. Stay updated on the wider fundamentals with our news and analysis, and learn more about technical analysis.
How to trade ASOS shares with CFDs
If you want to take a position on ASOS shares, you have two options. First, you can buy physical shares in the company through the exchange on which it’s listed. In this case, investing in ASOS stocks means you will own a share, or shares, in the company. This can be considered a long-term investment, as you’re hoping for the price to rise over time.
Alternatively, you can trade a derivative product such as a contract for difference (CFD) on the underlying ASOS stock market price, and speculate on its price movements without actually owning the asset. A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.
Unlike physical share ownership, you can either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall). This is considered a short-term investment or trade, as CFDs tend to be used within shorter timeframes.
Using leverage
Another key difference between buying physical ASOS shares and trading through a derivative is the leverage that can be employed with the latter. CFDs are typically traded on margin, which means that a trader has exposure to larger positions with a relatively small outlay. Using this method, both your profits and losses may be amplified, making leveraged trading risky. You can learn how to trade shares in our comprehensive guide to shares trading.
To trade ASOS stock CFDs with us, just sign up for a Capital.com account, and once you’re verified, you can use our advanced web platform or download our intuitive yet easy-to-use app. It’ll take just a few minutes to get started and access the world’s most-traded markets.
Why trade ASOS CFDs with Capital.com?
Trading CFDs with Capital.com means you’ll enjoy an intuitive, supremely easy-to-use platform, 24/7 support, fair and transparent pricing, along with award-winning education to help build your experience in the markets.* You can seamlessly integrate our smart platform with elite third-party software TradingView and MT4, and refine your strategies with our risk-free demo.
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