Asos has reported an almost 50% jump in its underlying profitability for the first half of its financial year.
The fashion retailer’s overall group sales were down 9% year on year for the six months to March 1, 2026, but have improved quarter by quarter.
Sales in the UK performed better than the group average, down 5%, while new customer numbers in its top four markets grew 2% year on year.
Gross margin improved significantly to 48.5%, driven by a new commercial model, a lower rate of returns and tighter cost control. Asos said its total fixed costs had been cut by more than 10% year on year.
In a statement this morning, the retailer highlighted a strong performance in womenswear and the success of “The Heart” – a monthly curated edit that has been selling at more than double the rate of its standard new-in range. Its revamped app has also driven higher order values and engagement, with new features including virtual try-on.
Chief executive José Antonio Ramos Calamonte said: “Our first half shows continued progress on executing our strategic priorities across relevant fashion product, inspirational shopping experience and an efficient operating model.
”The result has been an almost 50% year-on-year increase in underlying profitability. The enhancements we have made to the customer experience, including our revitalised app, are helping people to find not just items, but outfits, styled just for them. We are seeing improvements in new customer growth and strong performance in our womenswear business, both of which are encouraging lead indicators for sales growth. With an accelerated cadence of initiatives still to come this year, we are well positioned to deliver further improvements for customers and the business as our focus remains on sustainable, profitable growth.”
Full-year guidance remains unchanged, with EBITDA expected to land between £150m and £180m.
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