Asos FY25 profitability improves but revenues decline

Asos reported a step forward in its multi-year turnaround as the Group delivered substantial improvements in profitability, stock efficiency and cost discipline during the 52 weeks to 31 August 2025, despite softer consumer demand and a deliberate pullback on low-quality orders. The company posted an adjusted loss before tax of 98.2 million pounds and adjusted EBITDA of 131.6 million pounds, an improvement of 51.5 million pounds on the prior year, reflecting the impact of its new commercial and stock operating models.

Group adjusted revenue declined 14 percent to 2.5 billion pounds for the year under review, while GMV declined 12 percent year-on-year, reflecting continued macroeconomic pressures and the company's focus on improving order profitability.

"With the most difficult work behind us, I'm more confident than ever that we have the right strategy and capabilities to achieve our ambition to become the most exciting destination for fashion-lovers," CEO José Antonio Ramos Calamonte said in a statement.

Asos full year results across core markets

The UK remained the most resilient region, with GMV down 7 percent, driven by lower site traffic and reduced order volumes amid a cautious consumer backdrop. In Europe, GMV declined 16 percent, impacted by strategic actions to remove unprofitable orders and a 17 percent fall in site visits. Orders fell 20 percent, though this was partially offset by a 5 percent increase in average basket value due to stronger full-price performance and reduced discounting.

In the US, GMV decreased 18 percent, reflecting lower traffic and a modest 20-basis-point decline in conversion. An 8 percent rise in average basket value helped offset a 24 percent reduction in order volume. Rest-of-World GMV fell 15 percent, with softer regional demand and a slight 10-basis-point dip in conversion contributing to a 17 percent contraction in orders.

Review of FY25 financial performance and outlook

Improved full-price sell-through supported a gross margin of 47.1 percent, up 370 basis points year-on-year, in line with the company’s medium-term target of 50 percent and the company exited FY25 with a structurally leaner cost base, enabling an adjusted EBITDA margin of 5.3 percent, an increase of 250 basis points versus FY24, despite lower sales.

The Group reported a statutory loss before tax of 281.6 million pounds, including 183.4 million pounds in adjusting items, largely property-related charges tied to the US fulfilment centre closure. Basic and diluted loss per share were 250.1 pence, an improvement on FY24’s 284.4 pence, driven by a lower loss after tax of 298.4 million pounds, compared with 338.7 million pounds last year.

Looking ahead to FY26, Asos said the strategic and financial progress achieved through its turnaround positions the business for a year of continued improvement. The company expects GMV to show a strengthening trajectory through the financial year, with GMV performance forecast to outpace revenue by 3 to 4 percentage points. The Group anticipates further gross margin improvement of at least 100 basis points, reaching between 48 percent and 50 percent, supported by a higher full-price sales mix and the scaling of fulfilment flexibility. Adjusted EBITDA is expected to increase to between 150 million pounds and 180 million pounds.