Having started to deliver performance, many retail and consumer stocks have fallen significantly since the start of the Iran conflict. This isn’t surprising given the worsening outlook for inflation, interest rates and confidence. It has created some valuation anomalies, though. In particular, we have identified ASOS as an outlier based on both absolute and relative valuation grounds, now trading at a c55% discount to Boohoo. With consensus forecasts at the lower end of company guidance, other international peers having updated positively recently, limited geographical exposure to the Middle East, a strengthening turnaround trajectory, and an update in about 10 days’ time, we view current levels as a compelling entry point.