ASOS PLC

Latest Results (08.11.2025):

ASOS PLC reported its interim financial results for H1 FY25 (the 26 weeks to 2 March 2025), demonstrating a significant transformation in profitability despite a 13% decline in revenue. The new commercial model and cost discipline have driven a remarkable improvement in adjusted EBITDA and gross margin, while the company continues to enhance its operational efficiency and strategic initiatives in key markets such as the UK and US.

Revenue & Margins

During H1 FY25, ASOS PLC’s adjusted group revenue was £1,291.6m, down 13% compared to H1 FY24. However, the adjusted gross margin improved from 40.3% in H1 FY24 to 45.2% in H1 FY25 – a jump of approximately 490bps, driven by lower markdown activity and a stronger full-price mix.

Profitability Transformation

Key profitability metrics show significant turnaround. Adjusted EBITDA surged from a loss of £16.3m in H1 FY24 to a positive £42.5m in H1 FY25, reflecting a year-on-year improvement of about £60m. Similarly, adjusted EBIT and loss before tax demonstrated considerable progress, underscoring the effectiveness of the new commercial strategy.

Cash Flow & Debt Management

ASOS PLC improved its balance sheet, reducing net debt from £348.8m to £275.8m. Although free cash outflow widened to £84.1m (from £21.1m in H1 FY24) due to a return to normal seasonality in working capital, the company expects a shift to a significant free cash inflow in H2 FY25, setting the stage for robust FCF generation in FY26.

Strategic Initiatives & Market Impact

The report highlights major strategic initiatives: scaling the Test & React model to drive own-brand full-price sales, expanding flexible fulfilment operations, and launching new partnerships and brands. In the UK, ASOS Design sales grew by 9% year-on-year, and improvements in the US proposition—with double-digit run-rate sales growth—reflect the early success of the transformation.