Asos makes 'significant strategic progress' in FY25

(Sharecast News) - Retailer Asos said on Tuesday that it had made "significant strategic progress" in FY25, with the group focusing on building "sustainably profitable and resilient foundations". Asos said full-year adjusted underlying earnings were up more than 60% year-on-year and were expected to be towards the lower end of its £130m to £150m guidance, while profit per order increased approximately 30%, underscoring its "fundamental reset" in unit economics.

Gross profit margins were up roughly 350 basis points year-on-year, driven by its successful commercial model implementation. Group revenues, on the other hand, were said to be slightly below consensus estimates, as Asos continued to focus on higher-quality sales against a soft consumer backdrop.

Going into FY26, Asos said it remains focused on its strategy and was encouraged by the progress it has made. As such, it remains confident in achieving FY26 adjusted EBITDA and free cash flow in line with consensus forecasts, supported by further gross margin improvement towards around 50% and continued cost efficiency.

Asos reiterated its medium-term guidance for sustainable adjusted EBITDA growth to a margin of approximately 8%, sustainably ahead of capex, interest, tax and leases, as well as expecting a return to revenue growth and improving gross margin towards roughly 50%.





Reporting by Iain Gilbert at Sharecast.com