Companies

Asos profitability improves

May 2, 2025 United Kingdom

The UK-based online fashion retailer has reported improved profitability in the first half of its current financial year, underlining the success of its new commercial model

“H1 FY25 is the strongest sign yet that our new commercial model is working. We are driving a significant transformation in profitability, with positive adjusted EBITDA up by c.£60m YoY. Customers are responding positively to our focus on full-price sales, speed to market, and quality, resulting in a +9% YoY increase in Asos Design sales in the UK, and positive momentum with our partner brands. Importantly, these successes have been achieved whilst maintaining strong cost control and improving our inventory health”, commented José Antonio Ramos Calamonte, Chief Executive Officer.

First Half Results

In the first half of fiscal 2025, which ended on the 2^nd of March, the company’s revenue totalled 1.29 billion British pounds (1.53 billion euros), down by 14% on the same period last year.

Despite lower sales, full-price own-brand sales returned to growth, and the gross margin increased by 500 basis points as the company sold more inventory at full price and reduced markdowns, in line with its new commercial model.

Asos also reduced its first half pre-tax loss to 241.5 million British pounds (284.0 million euros) from 270.0 million British pounds (317.5 million euros) in the same period a year ago. Adjusted EBITDA also swung to a profit of 42.5 million British pounds (49.9 million euros) from a loss of 16.3 million British pounds (19.1 million euros).

“US customers now accessing greater product range via UK fulfilment, following changes to our global distribution model”, the company said, highlighting double-digit run-rate improvement in the country and a significantly higher full-price mix.

Still, “we continue to closely monitor the evolving US tariff outlook and see opportunity to respond as necessary through improved agility and flexibility of our sourcing and distribution model”.

For the full year, the UK online retailer expects its new commercial model to drive a gross margin increase of at least 300 basis points to over 46% and adjusted EBITDA growth of at least 60% to between 130 and 150 million British pounds.

1 GBP = 1.18 EUR

Image Credits: asos.com

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