ASOS posts 50% profit jump as cost cuts overshadow merchandise value dip (updated)

Asos

25/03/2026 07:36

First-half profit jumps on cost cuts, app revamp

Retailer reiterates forecast; shares surge over 14%

Adds fresh bullet points, context and share price to lead paragraph and 5, CEO comment in 4, analyst comments in 8-9, details throughout

March 25 (Reuters) - ASOS ASOS.L reported a 50% jump in first-half profit on Wednesday, helped by cost cuts, app improvements and a sharper fashion offering, sending shares surging over 14% in morning trading.

Under CEO José Antonio Ramos Calamonte, ASOS has been seeking to win back younger shoppers while cutting costs to boost profitability as competition from cheaper Chinese rivals intensifies.

The profit surge comes despite a 9% decline in the online retailer's gross merchandise value (GMV), which includes retail sales and partner fulfilment revenue, net of returns.

"We are seeing improvements in new customer growth and strong performance in our womens wear business, both of which are encouraging lead indicators for sales growth," Calamonte said in a statement.

ASOS shares jumped 14.2% by 0856 GMT, and were on track for their biggest one-day percentage gain since November 2025.

ANALYSTS MIXED ON RETAILER'S RECOVERY

Gross merchandise value in the UK, its largest market, fell 5% from last year, a smaller drop than across the group, and womenswear sales improved 10 percentage points from the second half of last year.

In its top four markets--the UK, US, Germany and France--ASOS grew new customer numbers by 2% from last year.

Analyst reactions were mixed on ASOS' growth.

"We are constructive on ASOS’s ongoing recovery potential," Berenberg analysts, citing free delivery and returns along with a clear market position as a multi‑brand retailer with exclusive lines.

But JP Morgan analysts said they "struggled to become more constructive" on the company's trajectory amid an uncertain demand outlook and geopolitical events.

British retailers have been squeezed by weaker consumer spending as high inflation has curbed discretionary purchases.

ASOS reiterated its annual profit forecast of 150 million pounds to 180 million pounds ($201.23-$241.47 million) for fiscal 2026.

($1 = 0.7473 pounds)

 (Reporting by Yamini Kalia in Bengaluru; Editing by Sumana Nandy and Bernadette Baum)

 ((Yamini.Kalia@thomsonreuters.com))