Challenges on the horizon for stockmarket darling ASOS, experts warn

20-somethings vulnerable to redundancy

A permanent shift away from "the old normal", the large proportion of 20-something young UK citizens working in retail or hospitality, and reduced air freight capacity forcing costs up are some of the potential headwinds on the horizon for investor favourite ASOS over the medium term, according to some investment professionals.

This comes following ASOS's trading update earlier this week, which revealed the firm has seen a 329% uptick in pre-tax profits amid the pandemic, while sales surged by 19% during the year to the end of August, driven predominantly by demand for leisurewear and skincare products. While the stock has proven immensely popular among investors, with its share price up 37.9% year to date according to data from FE fundinfo, some investment professionals fear the e-commerce giant will have some challenging headwinds to contend with as the coronavirus pandemic lingers on. The land that time f...