Asos posts full-year earnings rise despite sales fall

Asos maintained that “structurally improved profitability” is unlocking a “new era of customer re-engagement”.

The pureplay reported adjusted EBITDA up 60% to £132m on adjusted group revenue down 14% to £2.46bn in the year to August 31. Asos made a statutory pre-tax loss of £281.6m – an improvement from £379.3m the pevious year.

Asos said that its new commercial model was enabling gross margin expansion, that it had “transformed” its portfolio of partner brand products and operational efficiencies were resulting in cost savings and ”creating investment capacity”.

The retailer also relaunched Topshop over the year, including through wholesale partnerships with department stores Liberty and John Lewis.

Asos chief executive José Antonio Ramos Calamonte said: “Asos has always stood for innovation, energy and fashion that excites. When I became CEO at the end of FY22, it was clear we needed to reset the business so we could deliver that promise for our customers again.

“Three years later, the turnaround is well progressed: we’ve rebuilt our foundations, sharpened our focus, and we’re ready to reclaim our place as the most exciting destination for fashion-loving customers…

“Our priority for FY26 is to deepen our relationships with customers and make Asos not just a place to shop, but a destination for inspiration and style. Our strategy is to lean into what makes Asos distinctive: our unique assortment of the best own brand and partner brand products, fuelled by speed and flexibility, styling that helps customers create outfits they love, and increasingly personalised experiences that feel relevant and exciting. This focus on differentiation, rather than commoditised promotions or transactional experiences, will create lasting value for customers and stakeholders and sustainably profitable growth.”

In the current year Asos anticipates “further adjusted EBITDA growth to £150m to £180m”.