ASOS PLC (LSE:ASC) and Boohoo Group PLC (AIM:BOO), the online fashion retailers, will not be updating shareholders on their performance over the festive period, furthering the concerns surrounding two of London’s most shorted stocks.
Investors would have been expecting a post-Christmas trading update from both companies around this period of January, but Shore Capital has revealed neither is planning to.
Reporting festive figures is a common practice among listed retailers, who are often keen to highlight or warn shareholders about their performances during what is arguably the most important period of the year.
Boohoo claimed the lack of a festive update was due to its “ongoing effort to streamline its reporting processes and focus on more comprehensive updates at key milestones.”
Shore Capital experts say Boohoo’s decision leaves them having to “assume that present market expectations are set to be met.”
Asos confirmed in November it wouldn’t be providing investors with an update until March when it issues its first-half results.
Boohoo sits as the fourth most shorted London stock, with total short positions representing around 5.3% of the company's shares, data from ADVFN revealed.
Asos sits two places behind in the rankings, with a net short position of almost 4.2%.
In November, analysts at Stifel highlighted concerns over the group’s stock surplus, warning that being overstocked could lead to dented sales and gross margin erosion.
One investor who hasn’t been put off by the lack of communication is Mike Ashley’s Frasers, which upped its stake, once again, in Boohoo.
The UK retail giant confirmed it purchased more than £15 million worth of shares to lift its stake in the company to more than 21%.
Frasers is Boohoo’s largest public shareholder and has been topping up its stakes regularly in both it and Asos for several months now.