ASOS reported improved first-half profits and narrower losses, as it said its turnaround plan is beginning to rebuild growth despite weaker sales and a volatile trading backdrop.
In the 26 weeks to 1 March, group revenue fell 14 per cent to £1.116 billion, however adjusted EBITDA rose 51 per cent to £64 million while adjusted EBIT losses narrowed to £18.3 million from £39.6 million a year earlier.
The company said trading improved through the half and into the third quarter and new customer growth turned positive in March for the first time since September 2021, rising 9 per cent year-on-year.
The UK outperformed the wider group, with gross merchandise value (GMV) up 5 per cent, while womenswear also improved.
The retailer said US tariffs and disruptions linked to conflict in the Middle East increased freight costs and delivery times, particularly on Far East sourcing.
However, it added that the impact had been mitigated through its diversified supplier base and greater use of nearer-source markets including Turkey, Morocco and the UK.
Speaking in a post-trading update call with journalists, ASOS CEO José Antonio Ramos Calamonte said that while the online fashion retailer was “aware of the difficult situation in Iran, so far we’re not really seeing a big impact on our operations in the market.
“I have also read the the statements of other companies… we are not seeing that. We are not seeing any impact.”
Looking ahead, ASOS reiterated full-year guidance, forecasting adjusted EBITDA of £150 million to £180 million, further gross margin improvement and broadly neutral free cash flow.
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