The fashion industry is fickle and so are Asos investors. A whiff of trouble and they are quick to turn their backs on the fast fashion darling. So a warning that ever-shifting government guidance on the total lifting of Covid-19 restrictions had weakened demand for “going out wear” in the past three weeks, and would also bring the growth rate back down to earth during the fourth quarter, meant that Asos was given short shrift.
But that wasn’t the only reason investors wiped 15 per cent off the group’s market value on the morning of an update for the four months to the end of June. Disruption to global supply chains in the pandemic has led to increased freight costs and delivery delays. The
