ASOS PLC

ASC: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 8,736.00	Wdhqw	Bsnnnqtx

ASOS Earnings: Continues to Disappoint Despite Reasonable Efforts; Shares Cheap

Jelena Sokolova

Nov 1, 2023

We are reducing our fair value estimate for no-moat ASOS from GBX 1910 to GBX 1330 as the company reported worsening trading conditions in the second half of the year and guided for further negative sales development in 2024. We still believe there is value in ASOS' shares despite very high uncertainty. Those are trading at around 0.2 times revenue, implying continued erosion in revenue and profitability. That said, Zalando remains our preferred name in European online apparel space on bigger scale and stronger financials.

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