ASOS posts stronger profits as CEO declares 'new ASOS' era

ASOS has reported another year of falling sales but a sharply improved profit, marking a pivotal moment in its three-year turnaround. 

For the 52 weeks to 31 August 2025, revenue dropped 14% to £2.46 billion and GMV fell 12%, yet the online giant delivered a 60% jump in adjusted EBITDA to £132 million and a 370bps uplift in gross margin to 47.1% - its strongest margin in years.

The company’s message is clear: the painful reset is over, and the "new ASOS" has arrived.

José Antonio Ramos Calamonte, CEO at ASOS, said: "The journey we've been on has taken patience, hard work and tough decisions to get to where we are today. It had to follow a clear and deliberate sequence. We first had to rebuild the economics and stabilise the business so we could create the capacity to invest in what matters most to customers.

"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 striking. Over the last two years, ASOS has shrunk its warehouse footprint by more than half, cut stock levels by 60% since FY22, renegotiated distribution contracts and tightened its approach to returns. The result? Profit per order is up 30%, net debt has been reduced by more than £110 million, and the business ends the year with a free cash inflow of £14 million.

It has also fully leaned into its speed-to-market strategy, with its Test & React model. This takes designs from sketch to site in as little as three weeks, which now accounts for more than 20% of own-brand sales. ASOS says it plans to push that to 30% in the mid-term.

Meanwhile, brand partnerships are still evolving. Around 100 new partner brands joined the platform in FY25, while Inditex transitioned to an ASOS Fulfilment Services model and the retailer signed a multi-year exclusive womenswear collaboration with adidas that generated "two orders per second" at launch.

The newly relaunched Topshop and Topman brands, now operating through a joint venture with Heartland A/S, are also seen as customer re-engagement engines. ASOS staged a major comeback campaign in Trafalgar Square this summer and expanded Topshop into Liberty and John Lewis, with more wholesale partnerships expected.

With foundations laid, ASOS expects GMV to improve throughout FY26 and outpace revenue by 3-4 percentage points. Gross margin is forecast to rise again by at least 100bps, landing between 48-50%, and adjusted EBITDA is projected at £150 million - £180 million.