Asos sales fall but losses narrow as it continues to improve profitability

In the 26 weeks to March 2, 2025, Asos reported a loss before tax of £241.5m, narrowing from a deeper loss of £270m year-on-year.

Group revenue fell 13% from £1.5bn to £1.3bn in the same period driven by “annualising declines in old inventory stock”. This was in line with Asos’ expectations.

Adjusted EBITDA was up nearly £60m to £42.5m, driven by a “new commercial model and sustained cost discipline. 

Asos Design sales grew 9% year-on-year with own brand full-price sales returning to growth in the first half of the 2025 financial year. 

Gross margins grew 500 basis points boosted by “lower markdown activity and higher full-price mix”.

Asos said early responses have “been strong” to the shift in its global distribution model where US customers can access better ranges through UK fulfilment.

It added that it will “closely monitor” the US tariff outlook and will respond as necessary through “improved agility and flexibility” of its sourcing and distribution model.

In the second half of the financial year, Asos’ initiatives include launching Topshop.com, Asos World loyalty program, live shopping features, enhanced search and personalisation, and further leveraging AI such as through its AI stylist and addressing causes of unnecessary returns.

It stands by its full year profitability guidance of gross margin of at least 46% and adjusted EBITDA to increase by at least 60% to £130m to £150m.

It expects revenue growth towards the bottom end of the range of -9% to -2%.

Asos chief executive officer José Antonio Ramos Calamonte said: “H1 FY25 is the strongest sign yet that our new commercial model is working. We are driving a significant transformation in profitability, with positive adjusted EBITDA up by circa £60m year-on-year. 

“Customers are responding positively to our focus on full-price sales, speed to market, and quality, resulting in a 9% year-on-year increase in Asos Design sales in the UK, and positive momentum with our partner brands.

“Importantly, these successes have been achieved whilst maintaining strong cost control and improving our inventory health. We look forward to a fantastic pipeline of new products, brands and customer experiences, and remain confident in our ability to deliver sustainable, profitable growth.”