Asos saw improved profits in its full year trading update, despite witnessing a decline in revenues.
The retailer, which recently hired a new VP customer and commercial, forecast profits to be towards the lower end of its guided range, as it pivoted to the final phase of its transformation.
The fast fashion giant reported adjusted EBITDA rising over 60%, to between £130m and £150m over the period.
During its second half, Asos said it “delivered meaningful cost actions which, while not delivering a material benefit during the period, have permanently lowered [its] exit cost base, positioning the company to realise significant annualised savings in FY26”.
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Asos saw group sales “slightly below consensus estimates” over the year, as the brand focussed on “higher quality sales” amid a “soft consumer backdrop”.
Profit per order was up by around 30%, which it said underscored “the fundamental reset in unit economics achieved through focusing on creating sustainably profitable relationships with customers”.
Over the period, Asos said it had cut operational costs and improved efficiencies across its supply chain by “reducing the causes of unnecessary returns”, renegotiating key distribution contracts and “optimising its warehouse footprint”.
Looking ahead, the brand said it was “confident” it would achieve adjusted EBITDA and free cash flow in line with consensus forecasts for its current year, aided by further gross margin improvement towards around 50% and continued cost efficiency.
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