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They have been responding to the fundamental upticks that have been evident on balance sheets, gross margins and growth in UK customer numbers.

With net debt set to be eliminated ahead and a double digit fee cash yield ASOS is finally very cheap again

I don’t have access to the note myself but a higher profile investor on X has just said that Peel Hunt are calling for net debt to only be £50m by year end.

Expect more serious inflows to arrive here now

Materially above expectations

Congratulations in order

To quote ASOS broker’: “The Atlanta logistics facility is still mothballed and could offer future upside”.

Asos are actively planning to sell it. Official announcements and reports state that mothballing includes “formally marketing the facility” or selling the site. US orders now ship primarily from their UK (Barnsley) fulfillment center plus a smaller, more flexible US site. Ultimately, It’s their asset, ASOS owns or the property (they invested heavily in automation and expansion), so as the owner/leaseholder, they have the right to sell, sublease, or dispose of it like any commercial real estate.

Would also add that the large Atlanta site has been mothballed for a while now but market seems asleep to the upside from it. Another material cash windfall is just a matter of time.

A material reduction has been seen here which indicates a lot.

At the peak almost 10% of the company was loaned out. Shorts don’t get the credit they deserve for spotting high risk scenarios but they clearly have turned bullish here now. They are fortunate to be covering at this level especially after non operational Lichfield was sold. With Gross margins soaring and the balance sheet now substantially stronger this is a strong buy at this valuation