ASOS has reported an almost 50 per cent increase in first-half underlying profitability as its turnaround strategy continued to gain traction across key markets.
The online fashion retailer said adjusted EBITDA rose sharply in the period, while gross merchandise value declined 9 per cent, marking a sequential improvement as performance strengthened in its core markets of the UK, US, Germany and France.
Womenswear was among the retailer’s strongest performing categories during the half, while the UK, ASOS’s largest market, outperformed the wider group with a gross merchandise value decline of 5 per cent.
The business also pointed to continued tight cost control, with total fixed costs reduced by more than 10 per cent over the period.
Chief executive José Antonio Ramos Calamonte said the results reflected progress across ASOS’s core strategic priorities, including product, customer experience and operational efficiency.
“Our first half shows continued progress on executing our strategic priorities across Relevant Fashion Product, Inspirational Shopping Experience and an Efficient Operating Model,” he said.
“The result has been a circa 50 per cent year-on-year increase in underlying profitability. The enhancements we have made to the customer experience, including our revitalised app, are helping people to find not just items, but outfits, styled just for them.”
He added that the business was also seeing encouraging signs in customer acquisition and category performance.
“We are seeing improvements in new customer growth and strong performance in our womenswear business, both of which are encouraging lead indicators for sales growth,” he said.
Looking ahead, ASOS maintained its full-year guidance for adjusted EBITDA of £150m to £180m, signalling confidence that its recovery plan remains on track.
Calamonte said: “With an accelerated cadence of initiatives still to come this year, we are well positioned to deliver further improvements for customers and the business as our focus remains on sustainable, profitable growth.”
The update will offer further encouragement to investors that ASOS’s long-running turnaround is beginning to show more tangible results, with profitability moving in the right direction even as sales remain under pressure.
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