Companies

Asos confirms sharp underlying profitability growth in the H1

Apr 29, 2026 United Kingdom

The UK-based online fashion retailer reported a 51% increase in underlying profitability during the first half of the 2026 fiscal year. Declines in GMV and revenue were in line with expectations

According to Asos’ interim results for the 26 weeks ending on the 1^st of March 2026, adjusted EBITDA rose by 51% year-on-year to 64 million pounds (73.9 million euros), supported by continued margin expansion and cost discipline.

First-half adjusted gross margin improved by 330 basis points year-on-year to reach 48.5%, marking the eighth consecutive quarter of improvement. This reflects stronger buying, a higher proportion of full-price sales and greater supply chain efficiency.

These gains were achieved despite the introduction of additional US tariffs shortly before the start of the period. “The situation was well managed with swift mitigations enacted to protect service levels and customer experience in this core market”, reads the statement, as 7 million pounds in tariffs were recognised during this period.

This improvement in profitability has been achieved alongside continued pressure on the top line. Revenue declined by 14% year-on-year to 1.11 billion pounds (1.28 billion euros), while gross merchandise value (GMV) fell by 9% to 1.17 billion pounds (1.35 billion euros). This reflects both a more cautious consumer environment and a more disciplined approach to promotional activity.

According to the company, the results reflect progress in its ongoing turnaround strategy, which centres on enhancing product relevance, improving the customer experience, and establishing a more efficient operating model.

Asos also highlighted improved performance in key categories, including womenswear, and noted that new customer growth strengthened, reaching around 10% in the UK and turning positive in key markets, with churn down 150 basis points year-on-year.

Looking ahead, the fashion retailer maintained its full-year guidance. The company expects GMV to improve ahead of revenue by 3 to 4 percentage points, with a gross margin of 48% to 50% and adjusted EBITDA of between 150 and 180 million pounds (173 and 207 million euros).

1 GBP = 1.15 EUR

Image Credits: internetretailing.net

United Kingdom Asos Companies ecommerce Fashion Online Quarter Results Results