ASOS released its full-year results with a mix of progress and continued challenges. The fashion e-tailer is still loss-making, yet improvements in gross margin and operational efficiency suggest that the most difficult phase of its restructuring may be behind it.
Revenue Declines but Margins Strengthen
For the 52 weeks ending in August, the company recorded a double-digit drop in gross merchandise value and revenue. GMV fell by 12% to £2.456 billion, while adjusted revenue declined 14% to £2.465 billion. Despite this, the adjusted gross margin rose to 47.1%, reflecting more disciplined pricing, a stronger full-price mix and better order profitability.
Adjusted EBITDA increased to £131.6 million, though it landed below analyst expectations. Losses also narrowed: adjusted EBIT reduced by almost half to a £32.2 million loss, and adjusted loss before tax improved 28% to £98.2 million. Statutory figures painted a similar picture—revenue down 15%, but a much healthier gross margin and a significantly smaller operating loss compared with the previous year.
Growth Outlook and Margin Expansion in FY26
ASOS expects FY26 to mark the next phase of its recovery. The company anticipates improving GMV growth over the next year, with performance tracking several percentage points above revenue as its flexible fulfilment models continue to scale. Gross margin is projected to rise further, reaching between 48% and 50%, alongside an increase in adjusted EBITDA to between £150 million and £180 million.
Restructuring, Faster Trends and a Stronger Product Mix
The company has spent the past year transforming its operations. Its Test & React model, designed to respond quickly to emerging trends, now represents more than a fifth of own-brand sales. Its partner-brand assortment has been reshaped, inventory risk has been reduced and the balance sheet has strengthened. ASOS also highlighted the relaunch of Topshop, new leadership appointments and high-profile collaborations, including a notable project with Adidas.
A Renewed Focus on Customer Experience
For FY26, ASOS plans to sharpen its relationship with customers, positioning the platform not only as a store but as a destination for style and inspiration. The company believes that speed, flexibility, unique styling and increasingly personalised experiences will define its next stage of growth.
FY25 Performance Across Markets
Looking back at the past year, the 12% GMV decline reflected intentional moves to prioritise profitable orders in a challenging retail environment. Full-price sales strengthened, own-brand gained share and flexible fulfilment models allowed ASOS to broaden its assortment without adding inventory risk.
In the UK, GMV dropped 7% and revenue fell 9%. Site visits and order volumes declined, yet average basket value increased by 6%, and the company said customer retention trends are improving.
Europe saw a 16% GMV decline and a 19% revenue drop, influenced by measures to limit unprofitable orders and difficult macroeconomic conditions. The US recorded an 18% GMV fall and a 25% revenue decline, though the rate of decline eased in the second half of the year. In the rest of the world, GMV was down 15%, with revenue decreasing by 16%, while average order values rose slightly.
ASOS says its reset is beginning to show results—margin gains, strengthened operations and a more resilient product mix suggest its long-term recovery is gaining momentum.
