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Indeed. The whole principle of it is to use it to get rid of unwanted stock so that on their main website they don't have to have such heavy discounts (diluting the full sales price proposition). I think it worked a treat. They can also pull this level anytime they want to clear their channel.
There is just a new vacuum at the moment between updates. People fill in the blanks. Share price goes down - 'must be negative'. Share price goes up - 'must be positive'. Actually the only 'firm' news we have had has been from Asos peers (albeit physical stores) which are doing well.
There is a risk that an out of control inflation cycle, or stubbornly high inflation causes the BoE to basically force a hard recession to solve the issue. In such a situation Asos is in real trouble (given its high debt and gearing into the consumer).
Today's inflation print takes this risk off the table in my opinion. Share price should respond accordingly.
The big one will be falling inflation. Imagine all that disposable income sloshing back into the market when rates start to drift lower.
Will be a field day for UK consumers cyclicals. Asos is probably the most geared of the lot.
Asos was too promotional in the past (on its main site). I believe this is a strategy to push pricing up and have less discounting on the main site for those that want the latest fashion styles, newest ranges, and are less price sensitive. Meanwhile the stuff that isn't selling on the main site they can push through a different channel (for those who only want bargains and the stuff most people don't want).
Weening customers of aggressive discounting...