ASOS reports improved profit as it updates on transformation strategy
ASOS has reported making significant strategic progress in FY25 as it works through the final phase of its transformation strategy.
This has included launching new customer experiences including an exclusive Adidas x ASOS collaboration, the ASOS World loyalty programme in the UK, and expanding Topshop and Topman through new channels.
Subscribe to TRBIn the full year trading update, ASOS said its financial performance reflects the success of strategic progress as gross profit margins grew by 350bps year-on-year following a focus on higher full-price sales mix and lower markdown activity.
Meanwhile, operational and cost efficiencies delivered meaningful improvements particularly across its supply chain.
ASOS said its adjusted EBITDA was up more than 60% year-on-year in the period and is expected to be towards the lower end of the £130 million to £150 million guided range. This has been driven by higher gross margin and continued tight control of costs.
Profitability improved despite softer sales, with group revenue coming in just below consensus estimates, as the company continues to focus on higher quality sales against a soft consumer backdrop.
Looking ahead, ASOS said: “In FY26, building customer love is the primary focus for ASOS’ energy, investment and resources.
“ASOS enters this exciting phase of its transformation with a business model, stock profile and underlying cost base that positions it to succeed, with more new customer experiences to come.”
