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ASOS has reported that its losses before tax narrowed 43% from £241.5m to £137.9m, during the 26-week period to 1 March, as supply chain efficiencies and warehouse optimisation contributed to a reduction in the cost to serve.
As a result, the online fashion retailer maintains its full-year earnings guidance of £150m and £180m after adjusted EBITDA also jumped 51% to £64m for the same period. This was attributed to gross margins improving 330 basis points to 48.5%, marking eight consecutive quarters of growth for the metric.
While ASOS’ gross merchandise value fell by 9% year-on-year, the retailer noted sequential improvements throughout the period. The UK market was shown to have outperformed the wider group with just a 5% decline. New customer growth in the UK rose by 10%, which the company identified as “a leading indicator” for future revenue.
Supply chain efficiencies and warehouse optimisation, which contributed to a 150 basis points reduction in overhead costs, were achieved despite £7m in additional costs related to US tariffs.
In addition, the company completed a debt refinancing in November 2025 and repaid its 2026 convertible bonds in full following the period end.
ASOS likewise scaled its reactive product model during the half, with its own-brand activewear label – 4505 – recording 20% growth.
The retailer also integrated AI into design and customer care workflows. According to the London-based retailer, automation at its Berlin fulfilment centre is expected to deliver a 10% cost saving while increasing capacity for future growth.
In light of its performance, ASOS maintains an outlook for broadly neutral free cash flow, despite a seasonal outflow of £92.6m during the first half. Management has stated that current trading remains in line with expectations for the remainder of the 2026 financial year.
José Antonio Ramos Calamonte, chief executive of ASOS, said: “Together, we are taking decisive steps towards re-establishing ASOS as a leading online fashion destination. And even more exciting, there’s a lot more to come.
“The first half of 2026 has seen significant progress and momentum for ASOS. We have achieved a lot. Our capability to deliver the most relevant product to our customers is built on a unique combination of ASOS-owned brands and the most relevant third-party brands.”
