Asos results: revenue declines, adjusted EBITDA up 51 percent

UK online retailer Asos has announced its interim results for the 26 weeks to March 1, 2026, revealing a 14 percent drop in first-half revenue to 1.12 billion pounds and a 137.9 million pounds statutory loss before tax despite a significant 51 percent increase in adjusted EBITDA.

The report highlights a period of structural recalibration, where improved profit margins and customer acquisition strategies have begun to offset a decline in overall gross merchandise value (GMV).

Resilience against external pressures and outlook

The group faced 7 million pounds in costs related to the International Emergency Economic Powers Act (IEEPA) tariffs in the US. Despite this, management noted that swift mitigation strategies protected service levels in the region. Asos has initiated a process to pursue refund claims regarding these tariffs.

Operational agility was also tested by the conflict in the Middle East. The group utilised increased near-shore supply and a flexible logistics network to mitigate inflationary impacts and supply chain disruptions.

The group has maintained its FY26 guidance, expecting AEBITDA between 150 million pounds and 180 million pounds. Gross margin is projected to improve by at least 100 basis points, reaching a range of 48 percent to 50 percent. Management indicated that current trading in the third quarter (Q3) shows further sequential improvement. The womenswear business has entered positive YoY growth, and recent collaborations, such as the third drop with German sportswear brand Adidas, have delivered record performance.

Asos GMV declines by 9 percent

The group reported a 9 percent year-over-year (YoY) decline in GMV, though underlying data suggests a recovery is underway. The UK market outperformed the broader group with a 5 percent decline in GMV YoY, while the womenswear division saw its GMV growth rate improve by approximately 10 percentage points compared to the second half of the 2025 financial year (FY25).

Adjusted gross margin rose by 330 basis points YoY, marking eight consecutive quarters of improvement. Additionally, profit per order increased by 30 percent YoY, driven by more rigorous cost management and a transparent returns policy that improved the underlying returns rate by 160 basis points.

For the first time since September 2021, Asos recorded positive growth in new customers. In March 2026, new customer acquisition rose by 9 percent for the group. In the UK specifically, new customers increased by approximately 10 percent YoY. The customer database has also shown signs of stabilisation, with churn reducing by 150 basis points during the first half (H1).