Asos faces attack from traders after shares plunge 70%

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Asos trading stock market
Asos faces attack from short-selling traders after posting a 2nd profit warning in 7 months
// Asos faces attack from short-selling traders after posting a 2nd profit warning in 7 months
// Shares have already fallen 70% since its peak last year at 7730p
// London-based hedge fund Gladstone Capital Management has become the latest to up its bet against Asos

Asos has faced an increased number of attacks from short-selling traders after it posted a second profit warning in seven months.

Shares in the online fashion retailer have already fallen by 70 per cent since its peak last year at 7730p.

The shares floated on the stock market in 2001 for 20p, and fell again yesterday by three per cent, or 70p, to 2300p.

Asos’ shares soared in the 17 years after it was listed on the stock market, turning a £1000 investment into nearly £400,000, but it is now coming under attack from short sellers.

London-based hedge fund Gladstone Capital Management has become the latest to up its bet against Asos.

Five hedge funds hold short positions in Asos above 0.5 per cent, the level at which they must disclose their stake to the regulator.

Together, they are shorting 5.3 per cent of Asos’s shares and stand to rake in millions if the stock falls further.

Last month, Asos said profits for the year would come in between just £30 million and £35 million, compared to £102 million last year.

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