Companies

Asos reports profitability gains in full year 2025 amid strategic turnaround

Oct 6, 2025 United Kingdom

In its latest trading update, the UK-based online fashion retailer announced lower than expected revenue against a soft consumer backdrop, but said it had improved profitability

According to Asos, its financial performance in the 2025 financial year reflects the success of its strategic progress.

The gross profit margin improved by 350 basis points thanks to the implementation of a successful commercial model, which focused on increasing the proportion of full price sales and reducing markdown activity. The company’s supply chain optimisations and cost efficiencies also drove a 60% year-on-year rise in adjusted EBITDA.

Despite lower GMV and group revenue, Asos achieved “profitability improvements” overall, as the company continues to pursue its strategy of focusing on higher-quality sales against a “soft consumer backdrop”. Reflecting a reset in unit economics through more profitable customer relationships, profit per order increased by around 30% year-on-year.

Asos remains confident of achieving adjusted EBITDA and free cash flow in line with forecasts for the full year 2026, with the aim of achieving a gross margin of around 50%, maintaining cost efficiency and achieving medium-term EBITDA growth of around 8%, as well as returning to revenue growth.

Image Credits: tyla.com

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