ASOS reaffirms full-year guidance as profits rise

ASOS has reaffirmed its full-year guidance, citing continued progress across three strategic pillars during the first half of the financial year.

The online retailer reported that gross merchandise value (GMV) declined 9% year-on-year, although performance improved "sequentially".

GMV trends strengthened by four percentage points from Q4 2025 to Q1 2026, followed by a further two percentage point improvement in Q2. These gains were seen across core markets, including the UK, US, Germany and France, as well as in targeted product categories.

The UK, ASOS’s largest market, outperformed the group, despite GMV being down 5% year-on-year. Meanwhile, womenswear, identified as a “priority category”, also outperformed, showing an improved growth rate in the first half of FY26 compared with the second half of FY25.

Across its four largest markets, new customer numbers increased 2% year-on-year, with stronger momentum in Q2 compared with Q1.

Profitability improved, with adjusted gross margin rising 330 basis points to 48.5%, supported by the rollout of a new commercial model and expansion of its flexible fulfilment approach.

Adjusted EBITDA also increased by around 50% year-on-year, despite the impact of IEEPA tariffs, driven by higher margins, lower returns rates and continued cost control.

José Antonio Ramos Calamonte, CEO at ASOS, said: "Our first half shows continued progress on executing our strategic priorities. The result has been an increase in underlying profitability.

"The enhancements we have made to the customer experience, including our revitalised app, are helping people to find not just items, but outfits, styled just for them. We are seeing improvements in new customer growth and strong performance in our womenswear business, both of which are encouraging lead indicators for sales growth.

"With an accelerated cadence of initiatives still to come this year, we are well positioned to deliver further improvements for customers and the business as our focus remains on sustainable, profitable growth."

Progress was reported across three strategic pillars:

Relevant fashion product

ASOS prioritised key womenswear segments, with outerwear, evening dresses and tops all delivering year-on-year GMV growth.

Inspirational shopping experience

The company launched a redesigned app that improved customer engagement, sales per user and average order value, supported by features such as virtual try-on, styling tools and outfit saving.

Its loyalty programme, ASOS.World, has also grown to around 3.5 million UK members and has expanded to the US, Germany and Austria.

Efficient operating model

Fixed costs fell by over 10% year-on-year, while supply chain cost-to-serve improved by 150 basis points due to warehouse optimisation and renegotiated UK contracts. Sell-through rates rose 60 basis points, and returns rates declined by around 160 basis points.

As a result, ASOS has reiterated its full-year guidance, expecting GMV to improve throughout the year and to outperform revenue growth by three-four percentage points. Adjusted EBITDA is expected to be in the range of £150 million to £180 million.