ASOS has reported one other 12 months of falling gross sales however a sharply improved revenue, marking a pivotal second in its three-12 months turnaround.
For the 52 weeks to 31 August 2025, income dropped 14% to £2.46 billion and GMV fell 12%, but the net big delivered a 60% soar in adjusted EBITDA to £132 million and a 370bps uplift in gross margin to 47.1% – its strongest margin in years.
The firm’s message is obvious: the painful reset is over, and the “new ASOS” has arrived.
José Antonio Ramos Calamonte, CEO at ASOS, stated: “The journey we have been on has taken persistence, onerous work and difficult choices to get to the place we’re at the moment. It needed to comply with a transparent and deliberate sequence. We first needed to rebuild the economics and stabilise the enterprise so we may create the capability to put money into what issues most to prospects.
“With the most difficult work behind us, I’m more confident than ever that we have the right strategy and capabilities to achieve our ambition to become the most exciting destination for fashion-lovers.”
The shift is placing. Over the final two years, ASOS has shrunk its warehouse footprint by greater than half, reduce inventory ranges by 60% since FY22, renegotiated distribution contracts and tightened its strategy to returns. The outcome? Profit per order is up 30%, internet debt has been lowered by greater than £110 million, and the enterprise ends the 12 months with a free money influx of £14 million.
It has additionally absolutely leaned into its velocity-to-market technique, with its Test & React mannequin. This takes designs from sketch to web site in as little as three weeks, which now accounts for greater than 20% of personal-model gross sales. ASOS says it plans to push that to 30% within the mid-time period.
Meanwhile, model partnerships are nonetheless evolving. Around 100 new associate manufacturers joined the platform in FY25, whereas Inditex transitioned to an ASOS Fulfilment Services mannequin and the retailer signed a multi-12 months unique womenswear collaboration with adidas that generated “two orders per second” at launch.
The newly relaunched Topshop and Topman manufacturers, now working by way of a three way partnership with Heartland A/S, are additionally seen as buyer re-engagement engines. ASOS staged a significant comeback marketing campaign in Trafalgar Square this summer time and expanded Topshop into Liberty and John Lewis, with extra wholesale partnerships anticipated.
With foundations laid, ASOS expects GMV to enhance all through FY26 and outpace income by 3-4 share factors. Gross margin is forecast to rise once more by at the least 100bps, touchdown between 48-50%, and adjusted EBITDA is projected at £150 million – £180 million.