• ASOS share is down nearly 60% over the past year.
• The company intends to move the London Stock Exchange from AIM by the end of February 2022.
• ASOS delivers robust results amidst the challenging market conditions.

ASOS (LSE:ASC) shares have performed abysmally in the past year. In fact, the company’s stock is down nearly 60% as I write. In contrast, the FTSE 100 is up over 15% in the same period. Will ASOS’ intention to join the London Stock Exchange Main Market be a catalyst to turn the tides of the company’s stocks? And is now the best time to buy the ASOS shares?

How has the ASOS share price performed over the year?

ASOS plc is an online retail fashion company that focuses on fashion products for 20-somethings. The company has over 85,000 products, 850 third party brands, and a 26.7 million customers base.

The ASOS share price has been very volatile over the years. At the time of writing, the ASOS stock is up nearly 10,000% since its IPO in 2001. This is a mouth-watering performance, in my opinion. During this period, the company’s stock climbed as high as 7,770p in March 2018 and as low as 975.20p per share when the lockdown was introduced due to the Coronavirus.

Today, the company’s stock trades at 2,099p per share. It has since more than doubled its Covid-19 pandemic lows. Needless to say, this stock is not for the faint-hearted or the emotional investor, for it would be a troubling time for such investors. Let’s look at its fundamentals.

ASOS plc’s P1 Results

ASOS released its P1 results on 13 January 2022. The company delivered robust performance amidst the challenging market conditions. Revenue grew by 5% year over year in the reported period, while 300,000 customers were added to its active base bringing the total to 26.7 million. Despite the supply chain disruptions and the emergence of the Omicron variant, ASOS has managed to experience some growth. These fundamentals seem strong to me and I don’t expect ASOS shares to be down for too long. 

Furthermore, the business announced that it intends to move to the London Stock Exchange Main Market by the end of February 2022. The mixed results together with the ASOS’ intention to move to LSE Main Market made the stock appreciate over 11%. Though this move could cost the fashion company between £10m and £13m, it is a worthy expenditure, in my opinion. The move will make the ASOS shares be traded in larger bulk by both institutional and retail investors.

Is now the best time to buy ASOS Shares?

With the ASOS share price down nearly 60% in the past year, it could be a good time to buy. Nonetheless, I cannot predict how far southward the stock can go—considering that the company’s stock is very volatile and has gone as low as 975.20p during the pandemic.

In my opinion, the ASOS fundamentals are strong enough to keep its share price up. Hence, I see now as a good time to buy for my portfolio. In any case, only time will tell if I’m right. Meanwhile, here are 3 Warren Buffett lessons every investor should know.

Prosper Ambaka does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and therefore may differ from the opinions of analysts in The Money Cog Premium services.