ASOS Plc (LSE) Final results for the 52 weeks to 31 August 2025

2025-11-21 · Stocks · QuoteReporter

The stocks discussed are traded on the London Stock Exchange (LSE). On November 21, 2025, ASOS Plc announced its final results for the 52 weeks ending August 31, 2025, highlighting a structurally improved profitability and a new era of customer re-engagement.

For the fiscal year 2025 (FY25), ASOS reported an adjusted group revenue of £2,464.8 million, a 14% decrease from £2,896.0 million in the previous year (FY24). The statutory group revenue also saw a decline, dropping 15% year-over-year (YoY) from £2,905.8 million to £2,477.8 million. Despite the revenue decline, the company achieved a significant improvement in its adjusted gross margin, which increased by 370 basis points (bps) to 47.1%, compared to 43.4% in FY24. The statutory gross margin also improved by 710 bps to 47.1% from 40.0% in the prior year.

The company’s adjusted EBITDA rose by over 60% YoY to £131.6 million, up from £80.1 million, reflecting a 250 bps YoY margin improvement to 5.3%. This increase in profitability was achieved despite a lower than expected gross merchandise value (GMV), which fell by 12% to £2,456.3 million from £2,817.8 million in FY24. The adjusted EBIT loss narrowed to £32.2 million from a loss of £81.5 million in the previous year, while the adjusted loss before tax improved to £98.2 million from £126.0 million.

ASOS reported a statutory operating loss of £212.3 million, an improvement of £119.6 million compared to a loss of £331.9 million in FY24. The statutory loss before tax also improved, decreasing by £97.7 million to £281.6 million from £379.3 million in the previous year.

The company did not declare any dividends for FY25. However, ASOS significantly strengthened its balance sheet, reducing net debt by more than £110 million YoY to £184.7 million, aided by convertible bond refinancing and proceeds from the formation of the Topshop and Topman joint venture (TSTM JV). The free cash inflow for the year was £14.1 million, down from £37.7 million in FY24, driven by growth in adjusted EBITDA and a focus on capital efficiency.

Looking ahead to FY26, ASOS expects GMV to show an improving trajectory, with GMV growth projected to be 3-4 percentage points ahead of revenue performance as flexible fulfillment models scale. The company anticipates further gross margin expansion of at least 100 bps to reach 48-50%, driven by continued growth in full-price sales and flexible fulfillment models. Adjusted EBITDA is expected to grow further, ranging between £150 million and £180 million, supported by continued cost discipline. Free cash flow is expected to be broadly neutral.

In summary, ASOS Plc has made significant strides in improving its profitability and strengthening its financial position, setting the stage for sustainable growth and enhanced customer engagement in the coming fiscal year.

Date: 2025-11-21
Source: London Stock Exchange