Asos ups profit outlook as own-brand sales return to growth

Asos told the City that it expects a “significant improvement” in profitability during the first half of the financial year despite “continued volume deleverage”.

For the first half to March 20, 2025, Asos said it expects a 13% decline in total sales, adjusted EBITDA of £34m and an adjusted EBITDA margin of 2.6%.

Asos noted the return to growth of its own-brand full-price sales, which it called a “core engine” of its customer proposition.

The fashion retailer hailed the success of its test-and-react model, which allows it to offer “the most exciting product” and to “set the trends” for its shoppers.

Asos said in a statement: “As set out in its November update, the company expects a significant improvement in profitability in H1 FY25, despite continued volume deleverage, following a strong gross margin development driven by lower markdown activity and increased full-price mix, and continued cost discipline. In H1 FY25, the company expects revenue growth in line with, and adjusted EBITDA ahead of, consensus.

“Encouragingly Asos own-brand full-price sales, a core engine of its customer proposition, returned to growth in the first half. This was enabled by its market-leading test-and-react model, now more than 15% of own-brand sales and growing, ensuring Asos can offer the most exciting product and set the trends for its fashion-loving customers.”

Asos is expected to update on its half-year performance on April 24.

Shares in Asos have surged today, which was also helped by its largest shareholder, Bestseller chief executive Anders Holch Povlsen, upping his stake in the fashion retailer from 27.1% to just over 28%.