Companies

Asos reports 50% rise in underlying profitability

Apr 8, 2026 United States

The UK-based online retailer has reported a 50% year-on-year rise in underlying profitability in the first half, according to its latest trading update, driven by higher margins and cost discipline

“Our first half shows continued progress on executing our strategic priorities across Relevant Fashion Product, Inspirational Shopping Experience and an Efficient Operating Model. The result has been a c.50% YoY 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”, said José Antonio Ramos Calamonte, Chief Executive Officer.

Trading Update

Asos reported a 9% year-on-year decline in gross merchandise value (GMV) in the first half of the 2026 fiscal year (ending on the 1^stof March), but showed sequential improvement from late 2025 through to the first months of 2026.

Performance strengthened across key markets, including the UK, the US, Germany and France. The UK, the group’s largest market, outperformed with a smaller decline of just 5%.

“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”, highlighted José Antonio Ramos Calamonte, Chief Executive Officer.

Growth rates in womenswear increased by around 10 percentage points compared to the previous six months. Meanwhile, the number of new customers across the four core markets grew by 2% year-on-year, with further momentum seen in the second quarter.

In the first half of the current fiscal year, the adjusted gross margin rose by 330 basis points to reach 48.5%. This was supported by the introduction of a new commercial model and the expansion of flexible fulfilment operations.

Despite the impact of tariffs, first-half adjusted EBITDA increased by around 50% year-on-year, driven by stronger margins, lower return rates and continued cost discipline.

Asos noted that the group reduced fixed costs by over 10%, improved supply chain efficiency and achieved higher sell-through and lower return rates through better inventory management.

Outlook

The company reiterated its full-year outlook, expecting GMV to improve progressively throughout the year and outpace revenue by 3 to 4 percentage points. The gross margin is forecast to rise to between 48% and 50%, with adjusted EBITDA projected at between 150 million and 180 million British pounds. Free cash flow expected to remain neutral.

Image Credits: retaildetail.eu

United States Asos ecommerce Fashion Online Quarter Results Results