ASOS has reported one other yr of falling gross sales however a sharply improved revenue, marking a pivotal second in its three-yr turnaround.
For the 52 weeks to 31 August 2025, income dropped 14% to £2.46 billion and GMV fell 12%, but the on-line large delivered a 60% leap 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 evident: the painful reset is over, and the “new ASOS” has arrived.
José Antonio Ramos Calamonte, CEO at ASOS, mentioned: “The journey we have been on has taken endurance, exhausting work and hard choices to get to the place we’re in the present day. It needed to observe a transparent and deliberate sequence. We first needed to rebuild the economics and stabilise the enterprise so we may create the capability to spend money on what issues most to clients.
“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 putting. 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 end result? Profit per order is up 30%, web debt has been decreased by greater than £110 million, and the enterprise ends the yr with a free money influx of £14 million.
It has additionally totally 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% in 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-yr unique womenswear collaboration with adidas that generated “two orders per second” at launch.
The newly relaunched Topshop and Topman manufacturers, now working by 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.