REG - ASOS PLC - Final results for the 52 weeks to 31 August 2025
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RNS Number : 4464I ASOS PLC 21 November 2025
21 November 2025
ASOS Plc
Global Online Fashion Destination
Final results for the 52 weeks to 31 August 2025
Structurally improved profitability unlocks new era of customer re-engagement
Summary financial results
£m(1) 52 weeks to 52 weeks to Change Adjusted LFL change(2)
31 Aug 2025
1 Sep 2024
(FY25) (FY24)
Headline measures(3)
GMV(4) 2,456.3 2,817.8 (12%)
Adjusted group revenue 2,464.8 2,896.0 (14%)
Adjusted gross margin 47.1% 43.4% 370bps
Adjusted cost to serve(5) 42.0% 40.7% (130bps)
Adjusted EBITDA 131.6 80.1 51.5
Adjusted EBIT (32.2) (81.5) 49.3
Adjusted loss before tax (98.2) (126.0) 27.8
Net debt (184.7) (297.1) 112.4
Free cash inflow 14.1 37.7 (23.6)
Statutory Measures
Group revenue 2,477.8 2,905.8 (15%)
Gross margin 47.1% 40.0% 710bps
Operating loss (212.3) (331.9) 119.6
Loss before tax (281.6) (379.3) 97.7
Strategic update and results summary
· New commercial model enabling gross margin expansion: Adjusted
gross margin up 370bps YoY to more than 47%, on track for 50% mid-term target,
driven by higher full-price sales mix and lower markdown activity.
· Strategic models scaling, delivering trends faster: Test &
React (T&R) successfully scaled to more than 20% of own brand sales, with
broader speed to market initiatives reducing own brand production times by up
to c.30% YoY.
· Partner brand product portfolio transformed: c.100 new partner
brands launched during FY25 and exclusive collaborations such as adidas x
ASOS. Flexible Fulfilment (FF) models scaled to more than 10% of third-party
GMV by year-end, including the transition of Inditex to an AFS model, bringing
working capital benefits and customers greater product availability.
· Operational efficiencies driving cost savings and creating investment
capacity: Supply chain costs down c.20% YoY, through a series of wide-ranging
initiatives including reducing the causes of unnecessary returns,
renegotiation of key distribution contracts and optimising warehouse
footprint. In H2, further meaningful cost actions were delivered which
position ASOS to realise significant annualised savings in FY26, creating
headroom to reinvest in growth.
· Adjusted EBITDA up more than 60%, amidst lower sales: Adjusted EBITDA
of £132m delivered within guidance range, resulting in a 250bps YoY margin
improvement to 5.3%. Profitability improvement delivered despite lower than
expected GMV, as ASOS continues to focus on higher quality sales against a
soft consumer backdrop.
· Improving customer engagement and profitability: Despite overall
lower customer volumes in FY25, retention rates improved, especially among
profitable customers, with increased average spend and profitability.
Year-to-date in FY26, seeing an encouraging improvement in customer
engagement, including new customers up c.10% YoY in the UK.
· Balance sheet significantly strengthened: Net debt down more than
£110m YoY, through convertible bond refinancing and proceeds from the
formation of the TSTM joint venture(6) in Q1 FY25. Financial flexibility
further improved through term loan refinancing in Q1 FY26, bringing improved
financial terms including £87.5m additional liquidity headroom and extended
maturity.
· Free cash inflow: Delivered £14m FCF in FY25, driven by growth in
adjusted EBITDA and focus on capital efficiency.
· Exciting pipeline of inspirational experiences: First wave included
successful launch of ASOS.WORLD loyalty programme, new AI outfits 'Styled for
you' feature, and ASOS Live immersive shopping. Into FY26, focus shifts to
re-engaging customers through a series of meaningful improvements that
fundamentally enhance what shopping on ASOS feels like.
· Successful relaunch of iconic Topshop brands: Bringing customers
more ways to shop the best of Topshop and Topman (TSTM) through the relaunch
of Topshop.com in August, and new wholesale partnerships including Liberty and
John Lewis.
· Strategic leadership transition: Including the appointment of Aaron
Izzard as CFO in June 2025, Ben Blake as EVP of newly combined Customer &
Commercial in September 2025, and Natasja Laheij as Board Chair effective
today.
· FY26 outlook: GMV to show an improving trajectory through the year,
with FY26 GMV 3-4ppts ahead of revenue performance as FF scales. Further gross
margin expansion of at least 100bps to 48-50%, driven by continued growth in
full-price sale mix and FF models. Further adjusted EBITDA growth to £150m to
£180m, supported by continued variable and fixed cost discipline, with
meaningful YoY margin expansion in H1 and H2. FCF expected to be broadly
neutral.
CEO Review
ASOS has always stood for innovation, energy and fashion that excites. When I
became CEO at the end of FY22, it was clear we needed to reset the business so
we could deliver that promise for our customers again. Three years later, the
turnaround is well progressed: we've rebuilt our foundations, sharpened our
focus, and we're ready to reclaim our place as the most exciting destination
for fashion-loving customers.
The journey we've been on - which we discuss in more detail below - 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.
We have tested, refined and built the 'new ASOS' to bring customers better
products and a more seamless experience. We reshaped our product offering and
inventory management, improved our gross margin profile and cost base, and
sharpened our customer proposition. In FY25, these changes delivered a step
change in profitability, with gross margins up 370bps YoY and adjusted EBITDA
up more than 60% YoY, despite continued volume deleverage. These improvements
give us confidence that we now have the right foundations to deliver the best
of ASOS in a way that is sustainably profitable.
Our priority for FY26 is to deepen our relationships with customers and make
ASOS not just a place to shop, but a destination for inspiration and style.
Our strategy is to lean into what makes ASOS distinctive: our unique
assortment of the best own brand and partner brand products, fuelled by speed
and flexibility, styling that helps customers create outfits they love, and
increasingly personalised experiences that feel relevant and exciting. This
focus on differentiation, rather than commoditised promotions or transactional
experiences, will create lasting value for customers and stakeholders and
sustainably profitable growth.
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. I look forward to sharing more
detail on our journey and our next chapter in the Strategic Review and thank
you for your continued support.
Strategic Review
We've taken a deliberate approach to putting the foundations in place for
sustainable, profitable growth. As we've spoken about before, there have been
three stages to our turnaround each involving a deliberate series of actions -
not always a linear or neat process, but all geared towards the same goal of
building a platform that can deliver sustainable, profitable growth.
Stage 1: Dealing with the legacy of the old model
Our first focus was on addressing the significant legacy issues constraining
ASOS. These combined actions represent an enormous effort across our business
to successfully reset the essential foundations of our business.
Successfully resetting our inventory position…
At the beginning of our transformation, our stock levels had doubled to
£1.1bn at the end of FY22, due to pandemic-related disruption and poor
commercial practices which led to the build-up of old and aged stock.
Resolving this required tough but necessary action, with 'peak pain' in FY23
and FY24 including reducing our intake and discounting to clear old stock. By
the end of FY25, we successfully reduced our stock levels to c.£400m, down
c.60% since FY22, clearing aged inventory so customers see fresh styles and
the latest trends every time they shop.
…allowed us to complete our warehouse rationalisation
A second challenge at the start of our transformation was our substantial
warehouse network. Since FY21, we've reduced our footprint by over 50%,
supported by the reduction in excess inventory and more efficient stock levels
under our new commercial model. This has improved our operational efficiency
on existing sites and delivered significant fixed cost savings, enabling us to
serve our customers more competitively. Having mothballed our second UK
fulfilment centre (FC) in Lichfield in FY24, we announced the mothballing of
our Atlanta site in FY25 - optimising our US operating model, with
significantly improved product availability for customers from our remaining
UK FC in Barnsley, and a smaller, more flexible new site in Dallas, while
generating an expected £10-20m in annualised cost savings.
We've significantly strengthened our balance sheet, improving our financial
flexibility for the future
The third key legacy issue was our balance sheet and capital allocation. In
FY25 and early FY26, we took a series of actions that significantly
strengthened our balance sheet and improved our financial flexibility.
In September 2024, we announced the formation of the Topshop and Topman joint
venture (TSTM JV), with Heartland A/S taking a 75% stake for a £135m cash
consideration. Through a concurrent convertible bond refinancing, we
successfully extended our debt maturity profile while reducing our net debt,
funded in part by the TSTM proceeds. In November 2025, we announced a further
strengthening of our balance sheet through the successful refinancing of our
asset backed loan facility into a secured term loan and Delayed Draw Term Loan
("DDTL") with a new syndicate of private lenders. This refinancing brings
materially improved financial terms, including £87.5m additional liquidity
headroom, increased financial flexibility over a five-year term to 2030, and a
c.£5m reduction in annual cash interest costs versus the previous Bantry Bay
facility.
While our work to optimise the business model and capital allocation will
continue, we are confident that we have now addressed the most critical
foundational issues. This gives ASOS the flexibility and resilience needed to
support our next phase of sustainable, profitable growth.
Stage 2: Building the new commercial model based on speed, agility and
profitability
The second stage of our turnaround required us to build a new commercial model
that could deliver sustainable profitability. This required a comprehensive
transition to more disciplined, agile ways of working focused around three
simple principles: better product for customers, backed up by rigorous
inventory management, and more efficient operations. Consistently delighting
customers with fresh, relevant products at the right price builds loyalty, and
drives full-price sales. Stronger unit economics, in turn, create the capacity
to reinvest in customer experience, creating a positive flywheel.
Together, these principles establish a structurally higher gross margin
profile and stronger, more profitable underlying economic model that we can
grow sustainably going forward. We can already see proof of this working in
FY25. We grew our gross margin by 370bps YoY, driven by higher full-price mix
and lower markdowns, while reducing inventory by a further c.20% YoY,
benefitting our working capital intensity through quicker, more efficient
stock turnover. Our wide-ranging approach to improving the efficiency of our
cost base and operations - from a more targeted approach to our customer
proposition by market, through to renegotiating and resetting our variable and
fixed cost base to support the new commercial model - all helped us deliver
adjusted EBITDA growth of more than 60% YoY to £132m in FY25. This has been
achieved despite continued volume deleverage from lower than expected GMV, and
against a backdrop of continued macro uncertainty, demonstrating the
resilience and agility of our new operating model.
We have deliberately spent longer on Stage 2 than initially planned, and for
good reason. Towards the end of FY25, we explored the opportunity to reduce
fixed costs and drive further variable cost optimisation and we remained
focused on securing even stronger profitability foundations that will deliver
further material improvements to our cost base in FY26 and beyond, effectively
creating more headroom to reinvest in growth.
With the core building blocks of our new commercial model now in place, we are
able to move from roll-out to amplification. In FY26, we enter the final stage
of our transformation with a business model, stock profile and underlying cost
base that position us to return to sustainably profitable GMV growth.
How have we achieved this?
(i) Better product for customers
Great product sits at the heart of our customer proposition. What makes the
ASOS experience distinctive is the way we bring the best and freshest own
brand and partner brand product to life - through curating outfits, exclusive
drops and inspirational styling that showcase fashion in a way that excites.
New speed models allow us to set the trends with our own brand product
Being first to market for fashion and trends is one of ASOS' defining
strengths and something we're proud to bring to our customers. Our
market-leading Test & React (T&R) model - which brings product from
design to site in as little as three weeks - enables our own brands to deliver
the most exciting product and set the trends for our fashion-loving customers.
T&R now accounts for more than 20% of our own brand sales, having launched
from pilot two years ago, demonstrating the strong customer demand for this
product and our new commercial model in action. Into FY26, we plan to scale
this even further to more than 25% of our own brand sales, on track for our
medium term target of 30%.
We have extended the same fundamental principles to our long-shore own brand
supply chain through our speed to market initiatives, such as moving to
fabric-first design, with the ability to cut our average production times by
up to 30% over the last year. Our growing speed to market models help us bring
customers trends first while also improving the efficiency and agility of our
supply chain.
These capabilities are extremely hard to replicate. They require deep
co-ordination across design, sourcing and logistics, as well as the ability to
test and gather data on small runs of product through our online platform and
centralised inventory. Managed effectively, these production methods can
narrow the gap between supply decisions and demand signals - supporting better
gross margins (even with higher investment into input costs), reducing
discounting and removing waste and excess production in the system.
The integration of new AI tools is also making our people and our processes
more efficient. During H2, we successfully piloted a new AI design tool which
delivers an average time saving of 75-80% on core design workflow tasks, as
well as removing sampling costs and physical waste.
Deepening our partner brand relationships to bring customers more of the best
product, in one place
Combined with our Flexible Fulfilment (FF) models - Partner Fulfils (PF) and
ASOS Fulfilment Services (AFS) - we're able to scale the availability of the
best product to our customers faster and more efficiently than ever. These
models allow us to be more agile in how we collaborate with our partner
brands, while offering our customers increased breadth (i.e. expanding the
product range available on the ASOS platform) and depth (i.e. giving customers
access to best sellers when our wholesale stock is depleted). We ended FY25
with these platforms scaled to more than 10% of third-party GMV by the end of
the year, across c.150 brands and more than 10 markets, including successfully
transitioning to AFS with Inditex during H2 and launching PF in the US. In
FY26, we will continue to scale these models to more than 15% of third-party
GMV to best serve our customer demand and expand our relationships with new
and existing brand partners.
Our partner brands can see the power of our reinvigorated platform, with c.100
new partner brands joining in FY25, spanning premium names, cutting-edge
fashion, and commercial favourites, giving customers more of what they love
all in one place. Our cross-functional teams combine the best of the ASOS
platform for our brand partners: from elevated shoots through our in-house
studios' capabilities, access to new audiences through ASOS Media Group (AMG)
via our owned social and website content, to high-impact events. These efforts
have driven successful launches of brands including Arket, House of CB and
Good American and deeper collaboration with existing partners such as
Charlotte Tilbury, Inditex, Mango and Nike. We've also seen a strong customer
response to our growing premium proposition, which we're excited to continue
building out in FY26.
Creating exclusive outfits and styles that only ASOS can offer to inspire and
excite customers
In FY25, some of our biggest customer moments came from exclusive
collaborations. In July, we announced an exclusive multi-year collaboration
with adidas launching an ASOS-designed womenswear collection - a bold step in
a long-standing relationship. The first drop featured c.30 uniquely designed
pieces, generating 58 million social impressions in launch week and 2 orders
per second at launch, creating a halo effect and uplift in sales and
visibility of broader adidas product. This is just the start of an exciting
multi-year project, with the second collection launched in Q1 FY26, combining
adidas' brand and heritage with ASOS' speed and trends, showcasing the unique
value we can bring to customers through innovative partnerships.
As well as the latest trends, we know our customers want brilliant everyday
essentials - staple products that offer style, function and quality at great
value. In H2, we introduced breatheMAX™, our new ASOS Design menswear range
built for maximum comfort and effortless style. Featuring a variety of styles
of standard and oversized t-shirts at £16 to £22, each piece is crafted with
a high-performance wicking finish that pulls moisture away from the skin and
dries quickly, perfect for wearing on repeat. The demand from our customers
has been clear, with our initial menswear launch surpassing full-price
sell-through expectations and driving us to expand the range into womenswear
in FY26.
We see significant opportunity to build our next-level essentials collection
further, combining purpose-led design with premium, more sustainable fabrics
that deliver function, durability and inclusive style for our style-conscious
customers. Across our own brand portfolio, we achieved 50% more sustainable
materials usage (up from 34% last year, and surpassing our target of 45%),
making more of our customers' fashion choices inherently aligned with
responsible practices.
(ii) Rigorous inventory management
Consistently delivering customers the best, freshest fashion product requires
rigorous inventory management. With faster speed to market across our buying
process (i.e. a shorter lead time between buying and selling stock), powered
by T&R and our broader speed to market initiatives, we can make intake
decisions with increased flexibility, driving our full-price sales mix higher.
Alongside a more effective approach to in-season clearance, we've improved our
12 week sell-through rate YoY with lower markdown investment required. Our
Flexible Fulfilment models further enable us to maximise the availability of
the most exciting products while minimising inventory risk.
Our new, more disciplined inventory management process has enabled us to
reduce our stock cover by c.25% over the last two years and improve the return
on cash invested into inventory. This results in higher sales and gross profit
for a given level of inventory, thereby enhancing our cash flow and
sustainably reducing the capital intensity of our operations, while allowing
us to increase our sales with a more efficient investment in inventory in the
future.
(iii) More efficient operations
Our focus on efficiency spans our operations and our cost base. By removing
waste, both in terms of time and costs, we can unlock opportunities to invest
into areas that our customers really value.
Increasing efficiency and removing waste across our operations…
In FY25, we delivered meaningful operational and cost efficiencies,
particularly across our supply chain, that will lead to significant multi-year
savings and fundamentally improve our cost to serve. We've reduced our supply
chain costs by c.20% YoY, while continuing to invest into competitive delivery
speeds and bringing customers convenient options e.g. through our next-day
locker partnership with InPost in the UK. Distribution and warehousing costs
as a percentage of sales are down c.3ppts over the last two years, through a
series of wide-ranging initiatives including optimising our warehouse
footprint, contract renegotiations, and improving customer fulfilment metrics
e.g. reducing the percentage of orders that were missing our customer delivery
promise by c.30% YoY.
…focused on improving our customer experience by reducing key pain points
like returns
Returns have been a major focus area, both because of the cost they create and
the friction they cause for customers. We know finding the right fit matters
most. That's why, in FY25, we improved size guides and added more reviews so
customers can shop with confidence and avoid unnecessary returns. We also
refined our fair use policy in core markets to protect free returns for the
vast majority of customers, while addressing unprofitable behaviours. These
actions helped reduce our underlying returns rate by c.150bps YoY, and we see
further opportunities ahead in FY26 to tackle the root causes of unnecessary
returns and make shopping with ASOS even more seamless.
Significant profitability improvements in FY25, building on foundations laid
over last two years…
Combined, these gross margin and cost improvements have enabled us to grow our
adjusted EBITDA by more than 60% YoY, despite the continued volume deleverage
from lower than expected GMV as we continue to focus on higher quality sales
against a soft consumer backdrop. We have achieved this despite continued
inflationary pressures and macroeconomic and tariff uncertainty, reflecting
the increased agility and resilience that we've established during our
turnaround. This result also includes the impact of the TSTM royalty payment
in FY25, previously guided to being a £10-20m adjusted EBITDA drag during the
year, but which we expect to be increasingly positive over time. Our profit
per order is up 30% YoY, underscoring the fundamental reset in unit economics
we've achieved through focusing on creating sustainably profitable
relationships with our customers.
…with further cost improvements locked in for FY26 and beyond
In H2 FY25, we explored additional opportunities to reduce fixed costs and
drive further variable cost optimisation across our business, including
through a disciplined review and subsequent renegotiation of key supplier
contracts. These meaningful cost actions, while not delivering a material
benefit during the period, have lowered our cost base for the medium to long
term, positioning us to realise significant annualised cost savings in FY26
and beyond.
Stage 3: Re-engaging customers with the most relevant product and
inspirational shopping experiences
Re-engaging customers at scale to drive sustainably profitable GMV growth
With these stronger foundations secured, the final phase of our turnaround is
regaining the hearts and minds of customers at scale. We're focused on leaning
into what makes ASOS distinctive: great product, inspiring experiences and
innovation that resonates with our core customer. This means combining our
unique mix of own brand and partner brand product with styling,
personalisation and immersive experiences that makes us a true destination for
fashion. Our successful execution of the first two stages of our journey is
what gives us confidence in our ability to successfully deliver this final
stage of our journey.
Into FY26, we are focused on three key growth levers: continuing to enhance
product relevance through our speed models, exclusive collaborations and FF
platform expansion; investing in ROI-driven, product-led brand marketing; and
accelerating progress on our digital customer experience - our biggest
opportunity for step-change improvement.
Positive signs of deeper engagement with our existing customer base…
Although our total customer base is down 14% YoY - reflecting lower new
customer acquisition, as well as our continued actions to optimise our
customer proposition against a soft macro backdrop - the quality and
engagement of our active customers are improving. The number of reactivated
customers (those who had previously shopped, but not in the preceding 12
months) is broadly flat across the Group and up YoY in the UK, showing the
ability of our improved product and experience to re-engage customers who
already have consideration and awareness of the ASOS brand.
Our retention rate is improving, another clear signal that our enhanced
proposition is resonating. When we strip out the impact of measures taken to
address unprofitable customer behaviour, our retention rate among profitable
customers is improving at three times the Group rate. At the same time,
average net spend and customer profitability are also increasing, driven by
higher basket values and lower discounting. The progress we've made with our
customer proposition and economics in the first two stages are already
delivering improved return on advertising spend (ROAS).
Taken together - higher spend, higher profitability and stronger retention -
these trends demonstrate that ASOS is successfully winning back the hearts,
minds and wallets of customers who know our brand and shop with us, giving us
confidence that we have got a strategy that can bring value to customers.
…demonstrate the opportunity to bring more new customers to ASOS by raising
brand awareness
In FY26, we see a significant opportunity to win more of these future core
customers by spreading the message to new customers and telling them about
everything that ASOS can offer. We will relaunch the ASOS brand with a clear,
product-led message around quality and inspiration, supported by disciplined,
ROI-driven brand marketing to drive higher awareness and consideration in our
core markets. This will be backed up by an exciting pipeline of new and
innovative digital experiences to drive momentum and brand heat.
Making ASOS feel like it's made for you through better, more personalised
experiences
In FY26, our customers will find more ways to use ASOS for fashion discovery
and inspiration. We're launching a pipeline of exciting new features that will
make every customer feel like ASOS is made for them, regardless of their
shopping mission; whether its finding full outfits and looks with confidence;
discovering new brands, trends, and styles; or getting tailored advice from
your own personal stylist. Customers will be able to enjoy continuous
improvements over the coming months, including a new personalised "For You"
tab filled with the most relevant recommendations based on their preferences,
a refreshed homepage with shoppable fashion entertainment where they can
explore and discover new brands, trends and products, as well as new ways to
discover and engage with outfits, including making them easier to visualise,
buy and share their favourite looks.
In August, we launched ASOS Live, our immersive video shopping experience that
bridges the gap between inspiration, discovery and shopping through live and
on-demand videos that customers can interact with and shop through, within a
social media-style experience on our platform. We know customers value our
curation and guidance to help discover products, and that informative video
content helps provide confidence in size, fit and product suitability before
ordering. Since launching ASOS Live, we've seen a positive customer impact on
relevant metrics that ASOS Live supports, including higher engagement on-app
and improving customer conversion from viewers.
Our customers come to ASOS for more than just individual products - they're
looking for style inspiration. We know styling content is a proven driver of
conversion, demonstrating the value it brings to customers, and we're
innovating our on-site experience to bring that value to more customers and
product pages than ever before. In Q4, we began piloting our new "Styled for
You" feature, a major milestone in scaling outfit-based inspiration with the
power of AI. Trained on our database of 100,000+ expertly curated Studio
outfits, our AI model can serve customers with curated outfit suggestions
based around individual products.
Rewarding our most loyal customers with ASOS.WORLD
After a successful pilot launched in March, we rolled out our new loyalty
programme, ASOS.WORLD, across the UK in Q4. Designed to strengthen our
connection with customers, ASOS.WORLD rewards loyal customers with early
access, priority alerts and exclusive experiences designed around what they
value most. The programme features four tiers from the free-to-join Stylist
tier through to our A-Lister tier for customers spending £750+ annually.
We've reached more than 1m members in the UK within six months of launch,
demonstrating strong customer demand for the programme.
Benefits are rooted in ASOS' core proposition of great product and inspiring
experiences: early access to new collections, priority back-in-stock alerts,
invitations to exclusive online and in-person events, and more. For example,
ASOS.WORLD members gained early access to shop the second drop of our sold-out
adidas cow-print collaboration, purchasing a third of the stock despite only
making up c.10% of the customer base at the time of launch and driving a
significant spike in sign-ups to the programme. Members have higher order
frequency and customer value versus non-members, demonstrating the commercial
benefit of deeper engagement. In FY26, we see opportunity to roll out
ASOS.WORLD further and drive even stronger customer connections.
Giving customers more ways to shop our iconic brands with the relaunch of TSTM
In August, we staged the major relaunch of Topshop.com, taking over Trafalgar
Square in London, and delivering one of the most talked-about comebacks in
British fashion. This was just the beginning of reigniting the brands'
cultural relevance, with the return to physical retail through a curated
selection of wholesale partners announced, including Liberty and John Lewis.
Strategically, the relaunch is a major step in rebuilding Topshop and Topman,
giving customers more ways to shop and engage with them. The model, led by
Managing Director Michelle Wilson, gives TSTM the focused leadership and
support it needs to thrive as iconic standalone brands, while still leveraging
ASOS' core infrastructure and expertise to unlock its huge potential. We're
excited about the opportunities this creates in FY26 and beyond - not only for
TSTM's growth, but as a model for future brand development within ASOS.
Together, these initiatives will allow us to accelerate the impact of our
turnaround - turning the work of the past three years into deeper customer
engagement, greater operational efficiency and a clear route towards
sustainable, profitable growth. Our biggest opportunity is to make shopping on
ASOS feel personal and inspiring, with experiences that help customers
discover, style and shop effortlessly. We are only at the beginning of this
chapter, with the first wave of digital improvements delivered in Q4 showing
what is possible. As we move into FY26, our focus and velocity will step up
significantly, with a growing pipeline of initiatives bringing this to life
for our customers. Each enhancement - from smarter personalisation to seamless
discovery and checkout - is designed to deepen engagement, strengthen loyalty,
and unlock profitable growth.
Outlook
In FY26, enabled by the strategic and financial progress made throughout our
turnaround, we expect:
· GMV to show an improving trajectory throughout the financial year;
· GMV performance 3-4ppts ahead of revenue performance, driven by
continued growth of Flexible Fulfilment models. Reflecting this mix shift, we
have moved to GMV as the primary indicator of top-line performance;
· Further gross margin improvement of at least 100bps to 48% to 50%,
driven by continued growth in full-price sales mix and Flexible Fulfilment
models;
· Further adjusted EBITDA growth to £150m to £180m, supported by
continued gross margin expansion, variable contribution and fixed cost
discipline, with a meaningful year-on-year margin improvement in both H1 and
H2 FY26; and
· Broadly neutral free cash flow.
Our core focus remains sustainable, profitable growth. In the mid-term we
continue to expect to generate adjusted EBITDA sustainably ahead of capex,
interest, tax and leases, with revenue growth and an adjusted EBITDA margin of
c.8%. Our new commercial model can drive materially higher gross margin
towards 50% through higher full-price sales mix and flexible stock models,
which also benefits our inventory days. Our focus on efficient capital
allocation will bring our capex down to 3% to 4% of sales and, over time, we
anticipate that our improving profitability and cash flow will also reduce our
net debt and interest levels.
Notes:
1. Numbers throughout this section are subject to rounding.
2. Like-for-like (LFL) GMV and adjusted revenue are adjusted for the impact
of foreign exchange translation (constant currency sales) and adjusting items.
3. The alternative performance measures used by ASOS are explained, defined
and reconciled to statutory measures in the Alternative Performance Measures
note at the end of the financial statements.
4. Gross Merchandise Value (GMV) defined as adjusted retail sales plus
revenue attributable to Flexible Fulfilment partners, net of returns and
excluding sales tax.
5. Adjusted cost to serve defined as operating costs (excluding
depreciation, amortisation, impairments and adjusting items) as a percentage
of adjusted revenue.
6. The arrangement with Heartland, whilst referred to as a joint venture
throughout this report, will be accounted for as an associate, as detailed in
note 11 of the financial statements.
Investor and analyst meeting:
The group will be hosting an in-person presentation for analysts at 9.30am at
ASOS HQ, Greater London House, NW1 7FB. A live webcast will also be available,
and a recording of the presentation will be uploaded to the ASOS investor
relations website afterwards.
A recording of this webcast will be available on the ASOS Plc investor centre
website after the event: https://www.asosplc.com/investor-relations/
(https://www.asosplc.com/investor-relations/)
For further information:
Investors:
Emily MacLeod, ASOS Head of Strategy and Investor Relations Tel: 020 7756 1000
Media:
Jonathan Sibun / Will Palfreyman, Teneo Tel: 020 7353 4200
Background note
Founded in 2000, ASOS has 17m active customers in over 150 markets. We bring
fashion lovers around the world the best and most relevant fashion through our
unique own brands including ASOS DESIGN, ARRANGE, COLLUSION, Topshop, and
Topman, styled with the most exciting products from local and global partner
brands. With our expert in-house design team and agile and flexible commercial
model, including ASOS Fulfilment Services, Partner Fulfils, and Test &
React, we make the latest trends accessible to all and give customers the
confidence to be whoever they want to be.
Forward looking statements:
This announcement may include statements that are, or may be deemed to be,
"forward-looking statements" (including words such as "believe", "expect",
"estimate", "intend", "anticipate" and words of similar meaning). By their
nature, forward-looking statements involve risk and uncertainty since they
relate to future events and circumstances, and actual results may, and often
do, differ materially from any forward-looking statements. Any forward-looking
statements in this announcement reflect management's view with respect to
future events as at the date of this announcement. Save as required by
applicable law, ASOS plc undertakes no obligation to publicly revise any
forward-looking statements in this announcement, whether following any change
in its expectations or to reflect events or circumstances after the date of
this announcement.
Financial review
Revenue or GMV growth figures are expressed on a like-for-like (LFL) basis
unless otherwise indicated.(1,2)
Year to 31 August 2025
£m UK EU US Rest of World Total reported Adjusting items(3) Total adjusted
Retail sales(4) 1,137.0 788.1 236.0 178.4 2,339.5 (6.4) 2,333.1
Income from other services(5) 74.8 31.2 21.7 10.6 138.3 (6.6) 131.7
Total revenue 1,211.8 819.3 257.7 189.0 2,477.8 (13.0) 2,464.8
Cost of sales (1,311.1) 8.3 (1,302.8)
Gross profit 1,166.7 (4.7) 1,162.0
Distribution expenses (262.3) - (262.3)
Administrative expenses (828.1) 54.3 (773.8)
Other income 16.5 (10.8) 5.7
EBITDA 92.8 38.8 131.6
Depreciation, amortisation and impairments (305.1) 141.3 (163.8)
Operating loss (212.3) 180.1 (32.2)
Finance income 4.8 - 4.8
Finance expense (74.1) 3.3 (70.8)
Loss before tax (281.6) 183.4 (98.2)
During the 52 weeks to 31 August 2025 (the year) the Group realised an
adjusted loss before tax of £98.2m, and an adjusted EBITDA of £131.6m, a
£51.5m improvement on the results for the same period last year.
As in the first half, across FY25 our new stock operating model has continued
to deliver measurable benefits to stock health. This has driven a sustained
reduction in markdowns and improvement in our full price sales mix, supporting
a gross margin of 47.1%, up 370bps YoY. In parallel, further cost base
optimisation was achieved through a range of actions including mothballing the
US fulfilment centre and renegotiating key distribution contracts, delivering
additional efficiencies and lowering variable cost to serve. The FY25 exit
cost base has also been structurally reduced across multiple areas of the
business, providing a stronger foundation for future periods. Together, these
actions have helped offset the impact of a YoY sales decline, resulting in an
adjusted EBITDA margin of 5.3%, an increase of 250bps versus FY24.
The reported loss before tax of £281.6m for the year includes adjusting items
totalling £183.4m. Property-related initiatives account for £175.8m, the
significant majority being the result of the mothballing of our US fulfilment
centre, as noted in the interim results. Much of the expenditure under this
programme is the non-cash impairment of tangible, intangible and right-of-use
assets.
Other adjusting items include a £13.8m gain relating to the sale of a
majority stake in the TSTM brands, reported within other income, and a £5.0m
provision in relation to ongoing legal proceedings in an overseas territory.
The remaining £16.4m primarily relates to strategic initiatives aligning
organisational structure to support operational efficiencies.
GMV
All the KPIs below now include the Flexible Fulfilment models, given their
increasing scale, and hence comparatives are restated. LFL are adjusted for
the impact of foreign exchange translation and adjusting items. For more
detail, please refer to the Alternative Performance Measures (APMs) note at
the end of the financial statements.
Year to Year to Change
31 August 2025 1 September 2024
GMV (£m)(6) 2,456.3 2,817.8 (12%)
Active customers (m)(7) 17.0 19.7 (14%)
Average basket value (£)(8) 42.89 41.47 3%
Average basket value LFL (£)(9) 43.36 41.47 5%
Average order frequency(10) 3.37 3.45 (2%)
Total shipped orders (m)(11) 57.3 67.9 (16%)
Total visits (m) 1,912.9 2,252.4 (15%)
Conversion(12) 3.0% 3.0% -
GMV declined by 12%(2) YoY, reflecting strategic actions taken to improve
order profitability against a soft consumer backdrop. While top-line
performance was lower than expected, amid continued macroeconomic uncertainty,
this was also driven by a sustained deliberate focus on strengthening
profitability foundations to create headroom for future growth investment. As
a result of these actions, quality of sales improved: the full-price mix
increased, markdown reliance reduced, and own brand gained share within the
sales mix, all contributing to a more profitable revenue base.
Flexible Fulfilment models (PF and AFS) gained significant traction,
representing more than 10% of third-party GMV by the end of the year, up from
5% at the end of FY24. This shift broadened our product range without adding
inventory risk and ensured GMV growth outpaced revenue, as anticipated. With
adoption accelerating in H2, these models are positioned to play an even
greater role in FY26, reinforcing our strategy to scale efficiently and
enhance customer experience. Reflecting this mix shift, we have moved to GMV
as the primary indicator of top-line performance.
Customer metrics mirrored these dynamics, with active customers decreasing by
14% YoY, and visits tracking this trend, falling by 15%. However, customer
retention rates are improving, signalling that the changes we are implementing
are resonating with customers and laying the foundations for future growth.
Conversion remained broadly stable despite a leaner promotional stance.
We continued to optimise returns within our new commercial model. Building on
FY24 actions, we introduced targeted, data-led measures in H1 and H2 focused
on persistently high return behaviours, while continuing to offer free returns
to all our customers in our core markets. Together with ongoing improvements
to product quality and fit, these steps reduced returns and strengthened
basket level profitability. The modest impact on sales through the year
reflects an intentional mix shift towards healthier orders, consistent with
our strategy to drive sustainable, profitable growth.
Overall, top-line performance reflects challenging market conditions and
inflationary pressures, alongside the deliberate steps taken to strengthen
profitability, creating the foundations that will underpin the next phase of
growth.
Performance by market
United Kingdom
Year to
31 August 2025
GMV -7%
Total revenue -9% (-9% LFL)
Visits -12%
Orders -12%
Conversion flat
ABV +6% (+6% LFL)
Active customers 6.5m (-8%)
UK performance was more resilient than other regions through FY25. GMV
declined 7%, primarily reflecting lower site traffic and fewer orders against
a cautious consumer backdrop in the UK retail sector. A sharper focus on
newness and speed to market in our new model, with Test & React embedded
at scale and own brand gaining share, meant that the assortment was fresher
and more relevant: supporting healthier sell-through, higher ABV and improved
margins. The improvement stems from product resonance and execution - getting
the right product to customers faster - demonstrating the model's
effectiveness.
Customer activity reflected these shifts. Active customers declined 8% to
6.5m, but customer retention is improving, driven by a more relevant,
trend-led assortment. This was supported by the wider roll-out of Flexible
Fulfilment models, giving the ability to scale availability of high-demand
products at pace, and enhanced customer engagement through collaborations and
new brand launches. Conversion held broadly stable, even as we moved away from
heavy promotional stimulus, underscoring the appeal of newness and improved
product execution.
Europe
Year to
31 August 2025
GMV -16%
Total revenue -19% (-17% LFL)
Visits -17%
Orders -20%
Conversion -10bps
ABV +3% (+5% LFL)
Active customers 7.6m (-16%)
GMV across European markets declined by 16% YoY(2), in part driven by actions
taken to limit unprofitable orders. The region saw a 17% drop in visits,
contributing to a 20% reduction in orders, though this was partially mitigated
by a 5% uplift in ABV, reflecting a more favourable full-price sales mix and
reduced markdown as the new operating model delivers profitability benefits.
Macroeconomic pressures remain a factor in the region's performance, and
initiatives such as the introduction of a free returns threshold in H2 FY24 -
targeting high-returning customer segments - have contributed to a more
profitable sales mix. Building on this foundation, FY25 saw the roll-out of
further returns management enhancements. These steps improved variable
contribution, even as they tempered top-line growth in the near term. With
these measures now embedded, we expect the top-line impact to subside as we
lap the changes during FY26, creating a sustainably profitable base as we
pivot to the third stage of our transformation - re-engaging with consumers
through targeted product and experience enhancements.
United States
Year to
31 August 2025
GMV -18%
Total revenue -25% (-22% LFL)
Visits -17%
Orders -24%
Conversion -20bps
ABV +4% (+8% LFL)
Active customers 1.7m (-21%)
US GMV declined 18% YoY(2) as a result of lower traffic combined with a small
drop in conversion (20bps). Strong ABV which increased 8%, partly offset the
order decline (24%).
The US market's structural profitability opportunities were acted on ahead of
any other market, initiated in H2 FY24. Encouragingly, following the
annualisation of the significant profit actions we undertook and the shift of
fulfilment from the US to the UK broadening access to a wider and fresher
stock pool, H2 YoY GMV decline of 7% narrowed significantly compared to the
26% decline in H1 FY25. The actions taken to improve profitability included a
pivot to more efficient performance marketing investment, tighter returns
policies for persistently high returning cohorts, and reduced markdowns with
greater promotional discipline.
Together, these steps improved full-price mix and variable contribution and
delivered a significant improvement in the trajectory of active customers in
H2. The rate of decline narrowed from 31% in H1 to 21% in H2, supported by new
customer acquisition being broadly flat in H2, a notable improvement on the
38% decline in H1. Alongside this, a consistent improvement in the trajectory
of retention rates has been seen across H2, resulting in a YoY improvement in
Q4. This underscores the success of the strategic approach to addressing
structural profitability ahead of upweighting our re-engagement activity with
consumers, reinforcing confidence as this approach is executed across other
key markets.
Rest of World
Year to
31 August 2025
GMV -15%
Total revenue -16% (-14% LFL)
Visits -14%
Orders -17%
Conversion -10bps
ABV +1% (+3% LFL)
Active customers 1.2m (-18%)
Total RoW GMV declined 15% YoY(2) as softer demand and a marginal 10bps
deterioration in conversion resulted in a 17% drop in orders.
ABV rose 3%, partially cushioning the impact of lower volumes. These gains in
basket economics, together with disciplined trading, continue to support
improved order profitability. As actions taken in prior years annualise, the
rate of GMV(2) decline has improved YoY from a decline of 34% to 15%,
demonstrating the positive impact of the new operating model on customer
offering.
Gross margin
Adjusted gross margin³ increased 370bps YoY to 47.1%, underpinned by
sustained benefits from our commercial operating model.
Our new model - anchored on newness and more relevant product offering to
customers - has delivered higher full-price mix sell-through and structurally
lower reliance on markdown. Where clearance is required, it is targeted and
seasonally timed, improving the customer offer and reinforcing the efficiency
of the stock model.
In addition, the scaling of Flexible Fulfilment models, PF and AFS, has begun
to contribute meaningfully: these models enhance assortment and reduce
inventory risk - supporting margin expansion - while the associated fee income
and capital-light fulfilment economics helps to support our profitability
ambitions.
Reported gross margin was 47.1%, up 710bps YoY; the additional YoY uplift
reflects the impact of non-underlying stock write-off programmes recognised in
FY24.
Operating expenses
Adjusted cost to serve (excluding D&A) increased 130bps to 42.0%. This
reflects a c.200bps impact from the deleveraging effect of lower sales and
inflationary pressures, resulting in an underlying improvement in cost to
serve of c.100bps. Absorbed within this were the royalty payments to the TSTM
joint venture, and despite their inclusion, the variable cost to serve still
improved by 70bps. This improvement in variable cost to serve reflects
efficiency gains from a range of actions including renegotiated distribution
rates across key markets and a more efficient approach to marketing spend.
Fixed costs in absolute terms decreased significantly YoY, highlighting the
continued heightened discipline in capital allocation. Cost actions in H2 mean
the FY25 exit cost base is significantly lower, driven by a waste removal and
efficiency-led approach, which will drive future annualised savings.
£m Year to % of Year to % of Change in £ Value
31 August
revenue(13)
revenue(13)
1 September 2024
2025
Distribution costs (262.3) (10.6%) (326.1) (11.3%) 20%
Warehousing (255.1) (10.4%) (311.1) (10.7%) 18%
Marketing (167.8) (6.8%) (190.5) (6.6%) 12%
Other operating costs (350.9) (14.2%) (351.5) (12.1%) 0%
Adj. cost to serve (1,036.1) (42.0%) (1,179.2) (40.7%) 12%
(excl. D&A)
Adj. depreciation and amortisation (163.8) (6.6%) (161.6) (5.6%) (1%)
and impairments
Adj. operating costs (1,199.9) (48.6%) (1,340.8) (46.2%) 11%
Adjusting items within operating costs (195.6) (7.9%) (155.6) (5.3%) (26%)
Total operating costs (1,395.5) (56.3%) (1,496.4) (51.5%) 7%
Distribution costs decreased by 70bps YoY to 10.6% of revenue. Savings were
driven by improved returns rates and rate improvements secured through
renegotiation of carrier contracts in key markets through H2, with further
benefits to therefore be realised in FY26. These benefits helped to offset
inflationary pressures and lower volume based rebates from reduced volumes, as
well as the increased costs associated with the fulfilment of more US orders
from the UK following the US site closure.
Warehouse costs were 10.4% of revenue, down 30bps YoY. Efficiency gains from
the annualisation of FY24 network changes and our continuous improvement
programme more than offset the deleveraging impact of lower volumes and wage
inflation in key markets. At an adjusted level, early savings from the US
fulfilment site closure also contributed to the reduction, reinforcing the
structural benefits of our network strategy.
Marketing costs at 6.8% of revenue increased by 20bps YoY. Marketing
investment was disciplined and reweighted; as savings from our optimised
performance media model raised variable contribution and were redeployed into
full funnel brand and creator activity, keeping marketing costs as a
percentage of revenue broadly stable while supporting longer term demand
generation.
Other operating costs fell marginally by £0.6m YoY despite increases
associated with the impact of royalties payable under the TSTM brand
agreements. This improvement reflects the disciplined approach to indirect
spend and structural cost control, alongside annualisation of fixed cost
optimisation measures implemented in the prior year. Headcount was further
streamlined during the year, ending the year 4.9% lower than FY24, reinforcing
our focus on efficiency and sustainable profitability.
Depreciation and amortisation costs (excluding adjusting items) increased by
£2.2m YoY reflecting continued capital investment and associated depreciation
and amortisation charges.
Interest
Finance expense (excluding adjusting items) was £70.8m, an increase of
£14.3m from FY24, however the YoY impact on cash is broadly neutral in FY25.
The increased charges reflect the higher coupon on the new 2028 convertible
bond issued in September 2024. This refinancing partially replaced the
previous instrument and reset pricing in line with prevailing market
conditions, providing a stable capital structure to support the execution of
our strategy. The increase was partly mitigated by switching £50m of term
loan into a flexible facility to effectively reduce our blended interest rate
as we improve our financial flexibility.
Finance income was £4.8m, compared with £12.0m in FY24, as average cash
balances reduced following the refinancing programme, consistent with our plan
to reduce gross debt and improve the balance sheet.
Taxation
The reported effective tax rate is (6.0%) based on the reported loss before
tax of £281.6m. This is lower than the FY24 effective tax rate of 10.7%
primarily due to the effect of higher unrecognised deferred tax assets in the
year.
Earnings per share
Both basic and diluted loss per share were 250.1p (FY24: basic and diluted
loss per share of 284.4p). The lower loss per share is mainly due to lower
loss after tax for the year of £298.4m (FY24: £338.7m). The calculation of
diluted loss per share excludes the impact of potential ordinary shares as it
is anti-dilutive given the Group incurred a loss during the year.
Free cash flow
£m Year to Year to
31 August 2025
1 September 2024
AEBITDA 131.6 80.1
Share-based payments and other non-cash items included in AEBITDA (1.0) 2.6
Cash impacting operating adjusting items (19.2) (20.2)
Income tax received/(paid) 5.1 10.3
Decrease in inventory (excl. swo)(14) 109.7 143.1
(Increase)/decrease in other working capital(15) (67.1) 12.1
Operating cash flow 159.1 228.0
Purchase of property, plant & equipment and intangible assets (85.9) (133.5)
Payment of lease liabilities (principal) (25.7) (25.5)
Interest received 5.4 11.3
Interest paid (38.8) (42.6)
Free cash flow 14.1 37.7
Proceeds from sale of investments 135.0 -
Repayment of borrowings (210.7) (0.5)
Cash impacting financing adjusting items(16) (10.5) -
Cash flow (72.1) 37.2
Across FY25, there was a free cash inflow(17) of £14.1m. Operating cash flow
of £159.1m reflects a strong improvement in profitability partly offset by a
higher working capital outflow YoY - most notably, a smaller inventory benefit
as last year's stock health actions annualised and intake patterns normalised.
Investment discipline continued as capital additions were £85.9m, down on
FY24 by £47.6m, however expenditure for the year was £100.8m prior to the
subsequent impairment of investment into the Atlanta warehouse. The net
interest paid reduced to £38.8m, while interest received was lower. Taken
together, these movements delivered modestly positive free cash flow for the
year, consistent with the planned cash profile.
After financing activities, there was a net cash outflow of £72.1m, driven by
£210.7m of debt repayment and £10.5m of financing adjusting items, partly
offset by £135.0m of proceeds from the sale of a majority stake in the TSTM
brands.
Net debt, refinancing and liquidity
£m Year to Year to
31 August 2025
1 September 2024
Convertible bond (fair value of debt component) 343.3 478.1
Term loan, including accrued interest 153.8 190.2
Nordstrom loan 6.5 19.8
Borrowings 503.6 688.1
Cash and cash equivalents (318.9) (391.0)
Net debt (excluding lease liabilities) 184.7 297.1
Excluding lease liabilities, net debt reduced to £184.7m, an improvement of
£112.4m YoY. The reduction reflects deleveraging and refinancing actions
through the year, with lower balances across the convertible bond, term loan
and Nordstrom facility. Cash and undrawn facilities was £318.9m at the end of
the year, a £72.1m reduction YoY, as repayment of debt was prioritised,
partially offset by the sale of a majority stake in the TSTM brands,
consistent with our focus on strengthening the balance sheet.
Post balance sheet event
In November 2025, the Group entered into agreements to refinance its term loan
facilities. The refinancing will become effective in December 2025, at which
point the Group's existing £150.0m term loan will be repaid and the
associated revolving credit and accordion facilities with Bantry Bay will be
terminated.
The new financing arrangements, provided by a syndicate of private lenders,
are comprised of a £150.0m senior term loan and an £87.5m Delayed Draw Term
Loan facility. These new facilities will mature in November 2030.
Aaron Izzard
Chief Financial Officer
21 November 2025
Notes
1. Numbers throughout this section are subject to rounding.
2. Like-for-like ('LFL') revenue or GMV are adjusted for the impact of
foreign exchange translation and adjusting items.
3. The adjusting items are explained in note 3 of the financial statements.
Reconciliations between statutory measures and their associated Alternative
Performance Measures (APMs) can be found at the end of the financial
statements.
4. Retail sales are internet sales recorded net of an appropriate deduction
for actual and expected returns, relevant vouchers, discounts and sales taxes.
5. Income from other services comprises of delivery receipt payments,
marketing services, commission on sales through Flexible Fulfilment models,
revenue from wholesale sales, and jobber income.
6. GMV is adjusted retail sales plus revenue attributable to Flexible
Fulfilment partners, net of returns and excluding sales tax. The growth rate
is on a LFL basis. YoY growth rate prior to LFL adjustment is (13%).
7. Active customers defined as having shopped in the last 12 financial
months. These include the Flexible Fulfilment unique active customers.
8. Average basket value is defined as GMV divided by total shipped orders.
9. Average basket value LFL is calculated as LFL GMV divided by total
shipped orders.
10. Average order frequency is calculated as total shipped orders in the last
12 financial months divided by active customers.
11. Total shipped orders are the combined total of Asos and Flexible
Fulfilment orders.
12. Conversion is calculated as total shipped orders divided by total visits.
13. As a percentage of adjusted revenue for all lines other than Total
operating costs which is expressed as a percentage of reported revenue.
14. Sale of inventory, which was written off previously written down to its
net realisable value as part of the commercial operating model change,
accounted for £8.3m of the decrease in inventory in FY25.
15. Includes working capital movements associated with adjusting items; a
breakdown is included in the APMs section at the end of the financial
statements.
16. Financing adjusting items relate to refinancing costs as announced in
September 2024.
17. Free cash flow is net cash generated from operating activities, less
payments to acquire intangible and tangible assets, payment of the principal
portion of lease liabilities and net finance expenses.
Consolidated Income Statement
52 weeks to 31 August 2025 52 weeks to 1 September 2024
Note Adjusted Adjusting items (Note 3) Total Adjusted Adjusting items (Note 3) Total
£m £m £m £m £m £m
Revenue 2,464.8 13.0 2,477.8 2,896.0 9.8 2,905.8
Cost of sales (1,302.8) (8.3) (1,311.1) (1,638.7) (104.6) (1,743.3)
Gross profit 1,162.0 4.7 1,166.7 1,257.3 (94.8) 1,162.5
Distribution expenses (262.3) - (262.3) (326.1) - (326.1)
Administrative expenses (937.6) (195.6) (1,133.2) (1,014.7) (155.6) (1,170.3)
Other income 5.7 10.8 16.5 2.0 - 2.0
Operating loss (32.2) (180.1) (212.3) (81.5) (250.4) (331.9)
Finance income 5 4.8 - 4.8 12.0 - 12.0
Finance expenses 5 (70.8) (3.3) (74.1) (56.5) (2.9) (59.4)
Loss before tax (98.2) (183.4) (281.6) (126.0) (253.3) (379.3)
Income tax (charge)/credit 6 2.3 (19.1) (16.8) 2.6 38.0 40.6
Loss for the year (95.9) (202.5) (298.4) (123.4) (215.3) (338.7)
Loss per share pence per share pence per share
Basic and diluted 7 (250.1) (284.4)
Consolidated Statement of Comprehensive Income
52 weeks to 52 weeks to
31 August 2025
1 September 2024
£m £m
Loss for the year (298.4) (338.7)
Items that will not be reclassified subsequently to profit or loss
Net fair value losses on cash flow hedges (3.8) (5.2)
Tax on items that will not be reclassified (0.1) 0.3
(3.9) (4.9)
Items that may be reclassified subsequently to profit or loss
Net translation movements 1.6 -
Net fair value gains on cash flow hedges 0.4 6.7
Fair value movements reclassified from cash flow hedge reserve to profit or (11.3) (13.9)
loss
Tax on items that may be reclassified 3.4 3.7
(5.9) (3.5)
Other comprehensive loss for the year (9.8) (8.4)
Total comprehensive loss for the year (308.2) (347.1)
Consolidated Balance Sheet
31 August 2025 1 September 2024
Note £m £m
Non-current assets
Goodwill and other intangible assets 8 473.6 514.0
Property, plant and equipment 9 153.4 283.2
Right-of-use assets 10 172.1 254.0
Investment properties 6.2 7.1
Investments in associates 11 44.9 -
Trade and other receivables 1.8 3.7
Derivative financial assets 0.1 0.3
Deferred tax assets 44.7 62.5
896.8 1,124.8
Current assets
Inventories 13 402.3 520.3
Assets held for sale 3 - 165.5
Trade and other receivables 49.2 53.4
Derivative financial assets 1.2 9.5
Cash and cash equivalents 14 318.9 391.0
Current tax assets 3.7 6.7
775.3 1,146.4
Current liabilities
Trade and other payables 15 (619.3) (671.7)
Borrowings 16 (96.4) (1.6)
Lease liabilities 10 (27.5) (27.2)
Derivative financial liabilities (9.8) (6.6)
Provisions 17 (4.4) (2.7)
Current tax liabilities - (4.2)
(757.4) (714.0)
Net current assets 17.9 432.4
Non-current liabilities
Borrowings 16 (407.2) (686.5)
Lease liabilities 10 (197.0) (262.4)
Derivative financial liabilities (0.3) (0.5)
Provisions 17 (97.8) (86.5)
(702.3) (1,035.9)
Net assets 212.4 521.3
Equity attributable to owners of the parent
Called up share capital 4.2 4.2
Share premium 322.6 322.6
Other reserves 3.6 61.9
(Accumulated losses)/retained earnings (118.0) 132.6
Total equity 212.4 521.3
Consolidated Statement of Changes in Equity
Called up share capital Share premium Other reserves (Accumulated losses)/retained earnings Total equity
£m £m £m £m £m
As at 2 September 2024 4.2 322.6 61.9 132.6 521.3
Loss for the year - - - (298.4) (298.4)
Other comprehensive loss for the year - - (9.8) - (9.8)
Total comprehensive loss for the year - - (9.8) (298.4) (308.2)
Cash flow hedges gains and losses transferred - - 1.7 - 1.7
to non-financial assets
Share-based payments charge - - - 4.4 4.4
Tax relating to share incentive schemes - - - 0.1 0.1
Repurchase and refinance of convertible bond - - (50.2) 43.3 (6.9)
Balance as at 31 August 2025 4.2 322.6 3.6 (118.0) 212.4
As at 4 September 2023 4.2 322.6 73.1 466.8 866.7
Loss for the year - - - (338.7) (338.7)
Other comprehensive loss for the year - - (8.4) - (8.4)
Total comprehensive loss for the year - - (8.4) (338.7) (347.1)
Cash flow hedges gains and losses transferred to non-financial assets - - (2.8) - (2.8)
Share-based payments charge - - - 4.6 4.6
Tax relating to share incentive schemes - - - (0.1) (0.1)
Balance as at 1 September 2024 4.2 322.6 61.9 132.6 521.3
Consolidated Cash Flow Statement
52 weeks to 52 weeks to
31 August 2025
1 September 2024
£m £m
Cash flows from operating activities
Operating loss (212.3) (331.9)
Adjusted for:
Depreciation of property, plant and equipment, right-of-use assets and 51.4 55.0
investment properties
Amortisation of other intangible assets 115.5 117.3
Impairment charges on non-financial assets 138.2 119.9
Share-based payments charge (net of amounts capitalised) 3.7 3.4
Share of associate's net loss 0.1 -
Gain on disposal of brands (13.8) -
Gain on refinancing (2.6) -
Other non-cash items (1.8) (0.8)
Decrease in inventories 118.0 247.7
Decrease in trade and other receivables 4.3 22.9
Decrease in trade and other payables (54.5) (18.2)
Increase in provisions 7.8 2.4
Cash generated from operating activities 154.0 217.7
Net income tax received 5.1 10.3
Net cash generated from operating activities 159.1 228.0
Cash flows from investing activities
Purchase of other intangible assets (78.0) (97.1)
Proceeds from sale of brands 135.0 -
Purchase of property, plant and equipment (7.9) (36.4)
Interest received 5.4 11.3
Net cash generated from/(used in) investing activities 54.5 (122.2)
Cash flows from financing activities
Repayment of borrowings (63.3) (0.5)
Repurchase of convertible bond (147.4) -
Refinancing fees paid (10.5) -
Repayment of principal portion of lease liabilities (25.7) (25.5)
Interest paid (38.8) (42.6)
Net cash used in financing activities (285.7) (68.6)
Net (decrease)/increase in cash and cash equivalents (72.1) 37.2
Opening cash and cash equivalents 391.0 353.3
Effect of exchange rates on cash and cash equivalents - 0.5
Closing cash and cash equivalents 318.9 391.0
1 General information
The financial information contained within this preliminary announcement for
the periods from 2 September 2024 to 31 August 2025 and 4 September 2023 to 1
September 2024 do not comprise statutory financial statements within the
meaning of section 434 of the Companies Act 2006. Statutory accounts for the
period to 1 September 2024 have been filed with the Registrar of Companies and
those for the period to 31 August 2025 will be filed following the Company's
annual general meeting. The auditors have reported on the 2025 accounts: their
report was (i) unqualified, (ii) did not include a reference to any matters to
which the auditors drew attention by way of emphasis without qualifying their
report and (iii) did not contain a statement under section 498 (2) or (3) of
the Companies Act 2006.
ASOS Plc (the Company) and its subsidiaries (together, the Group) is a global
fashion retailer. The Company is a public limited company whose shares are
publicly traded on the London Stock Exchange. The Company is incorporated and
domiciled in the UK and the address of its registered office is Greater London
House, Hampstead Road, London NW1 7FB.
The financial year represents the 52 weeks to 31 August 2025 (prior financial
year: 52 weeks to 1 September 2024). The financial information comprises the
results of the Company and its subsidiaries.
Within these consolidated financial statements, 2025 refers to the 52 weeks to
31 August 2025, or as at 31 August 2025; and 2024 refers to the 52 weeks to 1
September 2024, or as at 1 September 2024.
2 Material accounting policies, judgements and estimates
2.1 Basis of preparation
The consolidated financial statements have been prepared in accordance with
UK-adopted International Financial Reporting Standards (IFRS) and with the
requirements of the Companies Act 2006 and the Listing rules as applicable to
companies reporting under those standards.
The financial statements have been prepared under the historical cost basis of
accounting, excluding derivative financial instruments which are held at fair
value. The financial statements are presented in Sterling and all values are
rounded to the nearest hundred thousand pounds (£0.1m) except where otherwise
indicated.
2.2 Going concern
The Directors are satisfied that the Group has sufficient resources to
continue in operation for a period of at least 12 months from the date of
approval of the financial statements, and therefore continue to adopt the
going concern basis in preparing the financial statements. To support this
assessment, detailed cash flow forecasts were prepared for the 18 month period
to February 2027.
In assessing the Group's going concern position, the Directors have considered
the Group's detailed budgeting and forecasting process which reflects the
Group's financial performance, position, and cash flows over the going concern
period (the base case). These cash flow forecasts represent the Directors'
best estimate of trading performance and cost implications in the market based
on current agreements, market experience and consumer demand expectations. In
conjunction with this, the Directors considered the Group's business
activities and Principal risks, reviewing the Group's cash flows, liquidity
positions and borrowing facilities for the going concern period.
At 31 August 2025, the Group had £73.6m of convertible bonds maturing in
April 2026, £253.0m of convertible bonds maturing in September 2028, and was
fully drawn on the £150.0m term loan with Bantry Bay. In November 2025, the
Group entered into agreements to refinance its term loan facilities. The
refinancing will become effective in December 2025, at which point the term
loan will be repaid and the associated revolving credit and accordion
facilities with Bantry Bay will be terminated.
The new financing arrangements, provided by a syndicate of private lenders,
are comprised of a £150.0m senior term loan and an £87.5m Delayed Draw Term
Loan facility. These new facilities will mature in November 2030.
As a result of the new financing package, the group is subject to a minimum
cash & cash equivalents threshold of at least £20m. Other covenants have
been considered throughout the assessment, but do not impact on the
availability of the facility throughout the assessment period.
Key assumptions - forecasting business cash flows
The assessment of the Group's going concern position required significant
management judgement, including in determining the key assumptions that have
the greatest impact on forecasts of future business performance and the range
of reasonably possible outcomes of those assumptions. The economic environment
has remained challenging with cost of living pressures continuing to impact
customer spending and sentiment. The future impact that the economic
environment will have on ASOS performance however is uncertain, so for the
purposes of the Group's going concern assessment, the Directors have therefore
made assumptions on the likely future cash flows in the uncertain macro
environment.
The assumptions considered include the continuation of our improved order
economics, as well as a sustained marginal recovery in the macro trading
environment, with the online fashion market assumed to experience
low-single-digit % growth on an aggregated basis across the Group's key
territories. The base case assumes a less aggressive share loss in FY26 than
experienced in FY25 as the Group sees the benefits from the adoption of the
new commercial model and continued improvements to the Group's customer
proposition with YoY sales growth gradually improving vs the FY25 exit rate
throughout the assessment period towards mid-single-digit growth by the end of
the assessment. Improvements in adjusted gross margin are included of at least
100bps vs FY25 to 48% to 50%.
Aligned to the Group's principal risks, the Directors have also considered
various severe but plausible downside scenarios against the base case,
comprising of the following assumptions:
· Sales growth reduction;
· Gross margin reduction; and
· Potential working capital cash impacts.
The downside scenarios are considered across both FY26 and H1 FY27, with the
greater degree of assumption-based improvements and subsequent volatility in
the outer periods commanding more severe downside sensitivities. Sensitivities
mapped against the base case within the downside case are highlighted below:
Downside vs base case FY26 H1 FY27
Sales (7%) (16%)
Gross Margin (190bps) (200bps)
Working Capital impact (average) £(121m) £(105m)
Should the Group see such significant events unfold it has several mitigating
actions it can implement to manage its liquidity risk, such as deferring
capital investment spend, deferring or reducing stock intake to match the
sales reduction, and implementing further cost management to maintain a
sufficient level of liquidity headroom during the going concern period. The
combined impact of the above downside scenarios and mitigations offers
suitable headroom during the going concern period.
Reverse stress tests have also been performed on both the Group's revenue and
gross margin. The tests under consideration hold all metrics in line with the
downside case highlighted above, analysing how far the stress metric would
need to decline against the base case to cause a liquidity event. Such results
would have to see over a 20% decline in sales over the base case or an
aggregate decline in gross margin rate from the base case of over 550bps
across the entire assessment period. Both are considered remote based on
results of previous significant economic events and recent trading
performance, particularly given the significant progress made during FY25
across our strategic priorities.
Based on the above, the Directors have concluded that, on the basis of there
being liquidity headroom under both the base case and downside scenarios, and
the consideration that the reverse stress test scenario is remote, it is
appropriate to adopt the going concern basis of accounting in the preparation
of the Group's annual financial statements, with no material uncertainty to
disclose.
2.3 New accounting standards
The Group adopted the following accounting standards and amendments during the
year with no material impact:
· Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback;
· Amendments to IAS 1 - Classification of Liabilities as Current or
Non-current, and Non-current liabilities with Covenants; and
· Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements.
New standards and interpretations that are in issue but not yet effective are
listed below:
· Amendments to IAS 21 - Lack of Exchangeability;
· Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of
Financial Instruments;
· IFRS 18 Presentation and Disclosure in Financial Statements;
· IFRS 19 Subsidiaries without Public Accountability: Disclosures;
and
· Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture.
The Group has considered the impact of the new standards and revisions that
are in issue but not yet effective and have concluded that they will not have
a material impact on the Group's financial statements, with the exception of
IFRS 18 which is under review.
2.4 Alternative Performance Measures (APMs)
In the reporting of financial information, the Directors use various APMs.
These APMs should be considered in addition to, and are not intended to be a
substitute for, IFRS measurements. As they are not defined by International
Financial Reporting Standards, they may not be directly comparable with other
companies' APMs.
The Directors believe that these APMs provide additional useful information
for understanding the financial performance and health of the Group. They are
also used to enhance the comparability of information between reporting
periods (such as adjusted profit) by adjusting for non-recurring or
uncontrollable factors which affect IFRS measures, to aid users in
understanding the Group's performance. Consequently, APMs are used by the
Directors and management for performance analysis, planning, reporting and
incentive setting purposes.
The income statement shows the items excluded from adjusted profit with a more
detailed analysis set out in Note 3. Other APMs that the Group has focused on
in the year are defined and reconciled in the APMs section. All of the APMs
relate to the current year's results and comparative years.
2.5 Critical accounting judgements and key sources of estimation uncertainty
The preparation of the Group's financial statements requires the use of
judgements, estimates and assumptions in applying the Group's accounting
policies to determine the reported amounts of assets, liabilities, income and
expenses.
Estimates and judgements are continually reviewed and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the current circumstances. Actual results may
differ from these estimates. Any revisions to accounting estimates are applied
prospectively.
Critical accounting judgements, apart from those involving estimations, that
are applied in the preparation of the consolidated Group financial statements
are discussed below:
· Going concern - refer to Note 2.2
· Identification of adjusting items - refer to Note 3
The identification of lease terms is no longer considered a critical
accounting judgement following a reassessment of the Group's lease portfolio
and reduced complexity in extension and break clause assumptions arising from
the decision to vacate the Atlanta fulfilment centre in 2025 and the Lichfield
fulfilment centre in 2024.
The key sources of estimation uncertainty at the reporting year end, that may
have a significant risk of causing a material adjustment to the carrying
amount of assets and liabilities within the next financial year are as below:
· Recognition of deferred tax assets - refer to Note 6
· Assumptions in relation to impairment assessment - refer to Note 12
· Inventory provisions - refer to Note 13
3 Adjusting items
Income statement
Revenue Cost of sales Administrative expenses Other income Finance expenses Total before tax Tax Total
2025 £m £m £m £m £m £m £m £m
Commercial operating model change 13.0 (8.3) (2.0) - - 2.7 (0.7) 2.0
Property-related costs - - (172.5) - (3.3) (175.8) 37.8 (138.0)
Other strategic initiatives - - (16.6) 13.8 - (2.8) (2.4) (5.2)
Amortisation of acquisition intangibles - - (4.5) (3.0) - (7.5) 1.1 (6.4)
Unrecognised deferred tax assets - - - - - - (54.9) (54.9)
13.0 (8.3) (195.6) 10.8 (3.3) (183.4) (19.1) (202.5)
Revenue Cost of sales Administrative expenses Other income Finance expenses Total before tax Tax Total
2024 £m £m £m £m £m £m £m £m
Commercial operating model change 9.8 (104.6) - - - (94.8) 23.6 (71.2)
Property-related costs - - (141.5) - (2.9) (144.4) 36.1 (108.3)
Other strategic initiatives - - (3.4) - - (3.4) 0.9 (2.5)
Amortisation of acquisition intangibles - - (10.7) - - (10.7) 2.7 (8.0)
Unrecognised deferred tax assets - - - - - - (25.3) (25.3)
9.8 (104.6) (155.6) - (2.9) (253.3) 38.0 (215.3)
Cash flow statement
2025 2024
£m £m
Commercial operating model change 9.0 0.2
Property-related costs (10.6) -
Other strategic initiatives (17.6) (20.4)
Total adjusting items within operating cash flows (19.2) (20.2)
Of the net cash outflow in the current year, £7.8m relates to net expenditure
incurred in the prior year.
Commercial operating model
In 2023, the Group approved the introduction of a new commercial operating
model, which involves a more disciplined approach to intake, increased speed
to market and clearing product more quickly to reduce the Group's inventory
requirement, increase full price sales and hence gross margin, and improve
customer engagement. To unlock these benefits, the Group has had to clear old
stock acquired under its previous ways of working via clearance routes, with
additional costs recognised across 2023 and 2024 of £228.0m relating to
inventory write-downs. The Group is now operating fully on the new model. The
amounts recognised this year reflect the clearance of inventory, including the
release of inventory provisions and stronger income per unit of inventory sold
through clearance routes.
Property-related costs
In January 2025, the Group announced its intention to vacate the Atlanta
fulfilment centre following the completion of the site's automation project
during the current year. While the site is not yet being actively marketed,
the Group has initiated steps to vacate and mothball the facility. As a
result, costs of £179.3m have been incurred during the year (2024: £147.5m
related to mothballing the Lichfield fulfilment centre). These costs are
detailed below. Comparative amounts relate to similar costs recognised in the
prior year for the closure of the Lichfield site.
2025 2024
£m £m
Atlanta Lichfield
Impairment of property, plant and equipment (a) (108.8) (97.7)
Impairment of intangible assets (a) (6.6) (2.2)
Impairment of right-of-use assets (a) (26.4) (15.8)
Impairment of investment properties - (4.2)
Non-capitalised asset spend (b) (16.5) (16.5)
Onerous occupancy costs (c) (14.0) (5.3)
Other costs to vacate (d) (7.0) (5.8)
(179.3) (147.5)
Other property-related costs
Recognition of net investment in lease receivable - 4.4
Reversal of impairment of right-of-use assets (e) 5.7 -
Other (2.2) (1.3)
Total property-related costs (175.8) (144.4)
a) Impairment of assets following the decision to vacate the site. The
recoverable amount for Atlanta was determined to be £nil on the basis that
the site has been mothballed (Lichfield: £nil).
b) Following the decision to vacate the site, management concluded that
committed spend to complete the automation project was not eligible for
capitalisation on the basis that it was no longer probable that the spend
would result in future economic benefits. Therefore, the committed spend has
been recognised in the income statement. Prior to the decision to vacate, the
spend incurred was considered capital.
c) Onerous contract costs are those costs that the Group is contractually
committed to due to being party to a lease on a site agreed to be exited. Upon
initial recognition of such provisions, management uses its best estimates of
the relevant costs to be incurred as well as expected closure dates. This
excludes business rates on leased property which are recognised in the year
they are incurred.
d) Includes costs associated with vacating sites, such as severance,
supplier termination and stock transfers.
e) Reversal of impairment losses previously recognised in 2023, as a result
of the reoccupation of a previously vacated office space.
Other strategic initiatives
2025 2024
£m £m
Restructuring (a) (15.7) -
Refinancing (b) 2.6 -
Disposal of brand (c) 13.8 (3.4)
Other (d) (3.5) -
(2.8) (3.4)
a) Restructuring costs of £15.7m were recognised during the year as part
of the Group's strategic focus on driving operational efficiency. These costs
reflect a range of reorganisation activities across the business, including
changes to leadership structures and functional realignments.
b) During the year, the Group launched a refinancing exercise of the
Convertible Bonds due 2026 and secured an amendment and extension of its
existing facilities with Bantry Bay Capital. The associated debt modification
and transaction fees incurred resulted in a net impact of £2.6m to
administrative expenses. Refer to Note 16 for further information.
c) Net gain on disposal of the Topshop/Topman brands to Heartland A/S
during the year. The impact of the disposal on the Group's accounts is shown
below:
Income Statement Cash flows
£m £m
Consideration
Cash 135.0 135.0
Shares in associate entity (Note 11) 45.0 -
180.0 135.0
Less: brands disposed (classified as assets held for sale) (165.5) -
Transaction costs(1) (0.7) (2.1)
Gain on disposal / cash flow on disposal 13.8 132.9
1 Transaction costs of £1.4m were accrued in the prior financial year
d) Included within Other is a charge relating to ongoing legal proceedings
in an overseas territory. The Group has previously reported a contingent
liability in relation to this matter. Following constructive engagement with
the claimants, management has estimated the potential cost of settlement.
Amortisation of acquired intangible assets
The amortisation of acquired intangible assets is adjusted for as the
acquisition that the amortisation relates to was outside business- as-usual
operations for ASOS. These assets would not normally be recognised outside of
a business combination, therefore the associated amortisation is adjusted.
Additionally included is £3.0m representing the Group's share of the
associate's post-tax results attributable to the amortisation of acquired
intangible assets.
Unrecognised deferred tax assets
Deferred tax assets of £74.6m were not recognised in the year and were
instead recognised in the income statement. Of the amounts not recognised,
£54.9m was attributed to adjusting items. Further information is included in
Note 6.
Critical accounting judgements - Identification of adjusting items
In order to provide shareholders with additional insight into the year-on-year
performance of the business, an adjusted measure of profit is provided to
supplement the reported IFRS numbers, and reflects how the business measures
performance internally. Adjusting items are those which are significant in
amount, either individually or in aggregate, and arise from events or
transactions that are not in the ordinary course of business, and are
therefore excluded from adjusted profit measures to provide clearer
comparability between periods.
The assessment of whether to adjust certain items requires judgement, and
covers the nature of the item, the cause of its occurrence and the scale of
impact of that item on reported performance and individual financial statement
line items, as well as consistency with prior periods. The same assessment is
applied consistently to any reversals of prior adjusting items. Adjusted
profit before tax is not an IFRS measure and therefore not directly comparable
to other companies.
4 Segmental analysis
IFRS 8 Operating Segments requires operating segments to be identified on the
basis of internal reporting on components of the Group that are regularly
reviewed by the Chief Operating Decision-Maker to allocate resources to the
segments and to assess their performance.
The Chief Operating Decision-Maker has been determined to be the Management
Committee. It is the Management Committee that reviews the Group's internal
reporting in order to assess performance and allocate resources across the
business. In doing so, the Management Committee reviews performance across the
Group via a number of sources, comprising regular monthly management accounts,
and ad hoc analysis that provides deep dives into different areas, including
territory, brands and revenue streams.
In determining the Group's operating segments, management has considered the
level of information which is regularly reviewed by the Management Committee.
Information regularly reviewed by the Management Committee is at a
consolidated Group level only, with some disaggregated revenue information and
associated metrics provided for the geographical territories of the UK, the
US, Europe and the Rest of the World. However, decisions on resource
allocation are not made based on this information. Such decisions are made on
ad hoc analysis, separately provided to the Management Committee, and does not
constitute information that is either regularly provided to, nor reviewed by,
the Management Committee. As a result, it has been concluded that the Group
has only one operating segment (the Group level).
The following sets out the Group's revenue in the key geographic markets in
which customers are located:
2025
UK EU US Rest of World Total
£m £m £m £m £m
Retail sales 1,137.0 788.1 236.0 178.4 2,339.5
Revenue from other services 74.8 31.2 21.7 10.6 138.3
Total revenue 1,211.8 819.3 257.7 189.0 2,477.8
Cost of sales (1,311.1)
Gross profit 1,166.7
Distribution expenses (262.3)
Administrative expenses (1,133.2)
Other income 16.5
Operating loss (212.3)
Finance income 4.8
Finance expenses (74.1)
Loss before tax (281.6)
Non-current assets(1) 693.0 154.9 4.1 - 852.0
2024
UK EU US Rest of World Total
£m £m £m £m £m
Retail sales 1,262.3 974.3 298.2 214.1 2,748.9
Revenue from other services 71.3 34.1 40.6 10.9 156.9
Total revenue 1,333.6 1,008.4 338.8 225.0 2,905.8
Cost of sales (1,743.3)
Gross profit 1,162.5
Distribution expenses (326.1)
Administrative expenses (1,170.3)
Other income 2.0
Operating loss (331.9)
Finance income 12.0
Finance expenses (59.4)
Loss before tax (379.3)
Non-current assets(1) 703.8 175.0 183.2 - 1,062.0
1 Excludes derivative financial assets and deferred tax assets.
Due to the nature of its activities, the Group is not reliant on any
individual major customers.
5 Finance income and expenses
2025 2024
£m £m
Finance income
Interest on deposits 4.8 12.0
Finance expenses
Interest on borrowings (66.9) (58.5)
IFRS 16 lease interest (6.4) (5.5)
Provisions - unwind of discount (3.8) (3.1)
Interest capitalised 3.0 7.7
Total finance expenses (74.1) (59.4)
Net finance expenses (69.3) (47.4)
6 Taxation
2025 2024
£m £m
Current year UK tax - -
Current year overseas tax 0.6 3.6
Adjustment in respect of prior year corporation tax (5.5) (4.4)
Total current tax credit (4.9) (0.8)
Origination and reversal of temporary differences 15.3 (42.4)
Adjustment in respect of prior years 6.4 2.6
Total deferred tax charge/(credit) 21.7 (39.8)
Total income tax charge/(credit) in income statement 16.8 (40.6)
Analysed as:
Tax on adjusted loss (2.3) (2.6)
Tax on adjusting items 19.1 (38.0)
Total income tax charge/(credit) in income statement 16.8 (40.6)
Effective tax rate (6.0%) 10.7%
Key sources of estimation uncertainty - Recognition of deferred tax assets
In accordance with IAS 12 Income Taxes, the Company recognises deferred tax
assets to the extent that it is probable that future taxable profit will be
available, against which the deductible temporary differences and the
carry-forward of unused tax losses can be utilised. In line therefore with the
judgements and estimates disclosed with going concern (refer Note 2.2) and
impairment (refer Note 12), the recognition of deferred tax assets requires
the Group to make significant estimates about the future profitability of its
operations.
In determining the amount of deferred tax assets recognised, management makes
estimates of future taxable profits and the likelihood of their being
recovered within a reasonably foreseeable timeframe, being a minimum of five
years, aligned to the Group's strategic planning process. In making these
estimates, management considers the current and projected financial
performance of the Group, including profit margins, revenue growth, and cost
management strategies, which are derived from management forecasts and
consistent with those used as part of the Group's going concern and impairment
assessments. Risk adjustments are then applied, with a greater adjustment
applied to periods where there is less evidence of profits, in particular,
those further in the future. The Group also considers the timing and amount of
deductible temporary differences. As at 31 August 2025, the Group has net
deferred tax assets of £171.6m, of which £44.7m have been recognised.
Deferred tax assets relating to temporary differences and unused tax losses of
£507.9m (£126.9m tax effected) have not been recognised.
The deferred tax assets have no expiry date and the Group believes that it is
probable that future taxable profits, together with the reversal of existing
temporary differences, will be sufficient to utilise the recognised deferred
tax assets, however actual outcomes could differ from these estimates due to
changes in the factors mentioned above. A movement of +/-10% in forecast
taxable profits would increase/(decrease) the amount of deferred tax assets
recognised by £6.7m/£(6.4m), and is considered a reasonable possible change.
The deferred tax assets unrecognised relate to losses on a mix of adjusted and
non-adjusted items. Therefore the £74.6m charge relating to unrecognised
deferred tax assets has been apportioned between adjusted and reported profit
in proportion to the total tax losses arising within each category, with
£54.9m recognised outside adjusted profit, and £19.7m within adjusted
profit.
7 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
the owners of the parent company ASOS Plc by the weighted average number of
ordinary shares in issue during the year. Own shares held by the Employee
Benefit Trust and Link Market Trust are excluded from the weighted average
number of ordinary shares.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue for the effects of all potentially dilutive
ordinary shares. However, as the Group incurred a loss during the year, the
impact of potential ordinary shares is anti-dilutive and therefore has not
been included in the calculation of diluted loss per share. As a result, basic
and diluted loss per share are the same for the current year.
2025 2024
Weighted average number of shares in issue - basic and diluted 119,294,826 119,085,260
Loss for the year (£m) (298.4) (338.7)
Basic and diluted loss per share (pence per share) (250.1) (284.4)
8 Goodwill and other intangible assets
Goodwill Brands and domain names Customer relationships Software Assets under construction Total
£m £m £m £m £m £m
Cost
As at 2 September 2024 35.5 31.7 24.4 966.2 14.8 1,072.6
Additions - - - 75.7 7.3 83.0
Transfers - - - 8.7 (8.7) -
As at 31 August 2025 35.5 31.7 24.4 1,050.6 13.4 1,155.6
Accumulated amortisation and impairment
As at 2 September 2024 0.3 5.1 10.8 539.9 2.5 558.6
Amortisation expense - 1.4 3.0 111.1 - 115.5
Impairment charge - - - 3.1 4.8 7.9
As at 31 August 2025 0.3 6.5 13.8 654.1 7.3 682.0
Net book value at 31 August 2025 35.2 25.2 10.6 396.5 6.1 473.6
Cost
As at 4 September 2023 35.5 219.6 24.4 863.5 19.0 1,162.0
Additions - - - 90.6 7.9 98.5
Transfer to assets held for sale - (187.9) - - - (187.9)
Transfers - - - 12.1 (12.1) -
As at 1 September 2024 35.5 31.7 24.4 966.2 14.8 1,072.6
Accumulated amortisation and impairment
As at 4 September 2023 0.3 19.8 7.8 431.5 2.1 461.5
Amortisation expense - 7.7 3.0 106.6 - 117.3
Transfer to assets held for sale - (22.4) - - - (22.4)
Impairment charge - - - 1.8 0.4 2.2
As at 1 September 2024 0.3 5.1 10.8 539.9 2.5 558.6
Net book value at 1 September 2024 35.2 26.6 13.6 426.3 12.3 514.0
Intangible assets under construction relates to spend on software-based
projects, including the enhancement of the Group's mobile apps/website, and
other software. No individual projects are material in value.
9 Property, plant and equipment
Fixtures, fittings, plant and machinery Computer hardware Assets under construction Total
£m £m £m £m
Cost
As at 2 September 2024 412.1 45.3 150.9 608.3
Additions 2.4 0.6 3.5 6.5
Disposals - - (0.1) (0.1)
Transfers 0.3 - (0.3) -
As at 31 August 2025 414.8 45.9 154.0 614.7
Accumulated depreciation and impairment
As at 2 September 2024 218.9 37.9 68.3 325.1
Depreciation expense 21.9 4.8 - 26.7
Impairment charge 22.6 1.7 85.2 109.5
As at 31 August 2025 263.4 44.4 153.5 461.3
Net book value at 31 August 2025 151.4 1.5 0.5 153.4
Cost
As at 4 September 2023 410.7 43.0 109.2 562.9
Additions 1.2 4.0 42.0 47.2
Disposals - (1.8) - (1.8)
Transfers 0.2 0.1 (0.3) -
As at 1 September 2024 412.1 45.3 150.9 608.3
Accumulated depreciation and impairment
As at 4 September 2023 165.4 32.1 2.8 200.3
Depreciation expense 22.5 6.4 - 28.9
Disposals - (1.8) - (1.8)
Impairment charge 31.0 1.2 65.5 97.7
As at 1 September 2024 218.9 37.9 68.3 325.1
Net book value at 1 September 2024 193.2 7.4 82.6 283.2
Refer to Note 3 for details of impairments.
10 Leases
The Group currently holds leases for its fulfilment centres and office space.
Leases typically run for terms of between 10 and 20 years and may include
break clauses or options to renew beyond the non-cancellable period. The
majority of the Group's leases are subject to market review, usually every 5
years.
10.1 Right-of-use assets
2025 2024
£m £m
At the beginning of the year 254.0 295.2
Remeasurements / modifications (42.2) (11.2)
Depreciation expense (24.0) (25.1)
Impairment charge (20.7) (15.8)
Change in dilapidations estimate 1.5 13.8
Foreign exchange differences 3.5 (2.9)
At the end of the year 172.1 254.0
Right-of-use assets comprise entirely of leases for land and buildings.
10.2 Lease liabilities
2025 2024
£m £m
At the beginning of the year 289.6 329.0
Remeasurements / modifications (42.2) (9.9)
Payments (32.1) (31.0)
Interest expense 6.4 5.5
Foreign exchange differences 2.8 (4.0)
At the end of the year 224.5 289.6
Current 27.5 27.2
Non-current 197.0 262.4
Total lease liabilities 224.5 289.6
Remeasurements / modifications to the lease liability balance are primarily
driven by lease term reassessments during the year, as the Group reassessed
its likelihood to exercise certain extension options, including those relating
to the Atlanta fulfilment centre.
11 Investments in associates
During the year, the Group sold the intellectual property relating to the
Topshop/Topman (TSTM) brands to 24.8.2024 Limited (IPCO), a UK-incorporated
company and subsidiary of Heartland A/S - a related party of the Group. As
part of the transaction, the Group received cash proceeds of £135.0m and a
25% equity interest in IPCO, valued at £45.0m. The remaining 75% interest in
IPCO is held by a subsidiary of Heartland A/S. The Group also holds one
representative director position on the IPCO board.
IPCO holds the TSTM brand assets and has granted a licence to ASOS.com for 10
years (extendable up to 25 years at ASOS' discretion), pursuant to which
ASOS.com has the exclusive right to continue to design TSTM products (subject
to de minimis rights to design local products) for global distribution and to
sell TSTM products through the ASOS.com website in consideration for a royalty
fee. ASOS also has the right to operate Topshop.com and Topman.com globally,
and has been granted exclusive wholesale distribution rights in the UK and
North America, while the purchasing entity retains the rights to open branded
stores globally and distribute through wholesale partners outside of the UK
and North America.
The Group is considered to have the ability to significantly influence, but
not control or jointly control, the financial and operating decisions of IPCO
through its equity interest and board representation. The investment in IPCO
has therefore been classified as an associate, initially recognised at cost of
£45.0m and subsequently accounted for using the equity method. The share of
net profit/(loss) from the associate is recognised within other income.
The following sets out the summarised financial information in respect of
IPCO:
2025
£m
Current assets 16.3
Non-current assets 164.5
Current liabilities (1.1)
Non-current liabilities -
Net assets 179.7
2025
£m
Revenue 15.9
Loss for the year(1) (0.2)
Total comprehensive loss (0.2)
1 Included in loss for the year is £(3.0m) in adjusting items relating to
amortisation of acquired intangible assets. Refer to Note 3 for further
information.
The following sets out the movement in the carrying amount of investments in
associates:
2025
£m
At the beginning of the year -
Additional investment 45.0
Share of net loss for the year, net of tax (0.1)
Distributions received -
At the end of the year 44.9
12 Impairment of non-financial assets
12.1 Inputs and assumptions
Cash generating units
CGUs are deemed the smallest group of assets that independently generate cash
inflows and are independent of the cash flows generated by other assets. It
was determined that the Group only has one CGU (the Group level) on the basis
that the majority of assets within the Group are shared (i.e. software assets
that support the entire Group) and therefore unable to be allocated on a
reasonable or consistent basis in any other way.
Composition of CGU
For impairment testing purposes, the CGU comprises the following:
2025 2024
£m £m
Goodwill and other intangible assets 473.6 514.0
Property, plant and equipment 153.4 283.2
Right-of-use assets 172.1 254.0
799.1 1,051.2
Assets relating to the Atlanta fulfilment centre were tested separately and
excluded from the above due to the decision during the year to vacate the
site. Refer to Note 3 for further information.
Identification of impairment indicator
Given the reported loss recognised during the year, combined with the
volatility within the macro-economic environment, an indicator of impairment
was deemed to exist.
Approach and assumptions
The recoverable amount for the CGU has been determined using a value-in-use
calculation which is based upon the cash flows expected to be generated,
derived from the latest budget and forecast data which are reviewed by the
Board, and consistent with those used for the Group's going concern and
viability assessments. Budget and forecast data reflects both past experience
and future expectations of market conditions. The key assumptions in measuring
the value-in-use are as follows:
Assumption Details
Cash flow years / assumptions · Derived from medium term forecasts reviewed and approved by the Board
which cover a period of five years. Growth rates are then reduced to 2.0% (the
long-term growth rate) into perpetuity (2024: 2.0%).
· Whilst the value in use excludes lease rentals (a financing cash flow
under IFRS 16 Leases), an estimated cash outflow for future lease renewals is
assumed from the current lease end dates.
Discount rate · A post tax discount rate representing the Group's weighted average cost
of capital (WACC), subsequently grossed up to a pre-tax rate using an
iterative calculation that yields the same value in use when tax cash flows
are excluded.
· The post-tax WACC has been calculated using the capital asset pricing
model, the inputs of which include a UK risk-free rate based on government
bond rates, a UK equity risk premium and levered debt premium benchmarked to
externally available data, and an average beta derived from a comparator
group.
· The resulting discount rates are:
2025 20
24
Post-tax rate Pre-tax rate Post-tax rate Pre-tax rate
12.5% 15.9% 12.7% 15.5%
12.2 Outputs
Outside of specific impairments recognised during the year in relation to
sites identified for exit as disclosed in Note 3, no further impairments were
identified as a result of the impairment review described above, with headroom
noted of c.£103m (2024: c.£600m).
Key sources of estimation uncertainty - Assumptions in relation to impairment
assessment
Of the assumptions used in the assessment, the value-in-use calculations are
most sensitive to changes in the discount rate, the long-term growth rate and
forecast cash flows (comprising revenue, gross margin and fixed overheads).
Cash flows are derived from forecasts reviewed by the Board, and in line with
those used for the going concern and viability assessments which assume sales
growth rates gradually improve vs. the FY25 exit rate, trending towards
mid-single digit growth after 18 months which is then sustained for the
remainder of the plan. Improvements in adjusted gross margin of at least
100bps vs FY25 to 48% to 50% are assumed during FY26 with FY27 & FY28
continuing at around 50% level.
A sensitivity analysis for reasonable possible changes in assumptions was
conducted on the impairment tests, where management assessed a scenario in
which the revenue growth rates within the five-year forecast cash flows (being
the most sensitive assumption) were reduced by half. To reflect this
adjustment, a corresponding reduction in variable costs and cost of sales was
modelled to maintain gross margin percentage in line with original forecasts.
Under this sensitivity scenario, an impairment of approximately £207m would
be recognised.
The following table shows the amount by which the assumptions would have to
change to make the recoverable amount equal to the carrying value to show the
headroom sensitivity. It is not considered that a reasonable possible change
in the discount rate, fixed overheads nor the long-term growth rate would
cause an impairment, therefore they are not included below.
Sensitivity 2025 2024
A reduction in forecast annual growth rates of:(1) (0.7%) (2.7%)
A reduction in forecast revenue vs base case of:(2) (2.7%) (11.4%)
A reduction in forecast gross margin in each year of: (0.6%) (2.4%)
1 Applied to the Group five-year plan period
2 Applied to all years within the assessment period
13 Inventories
2025 2024
£m £m
Gross finished goods 523.5 683.6
Inventory provision (121.2) (163.3)
Total inventories 402.3 520.3
The carrying value of inventories includes a £37.2m (2024: £49.2m) right to
recover asset in relation to the inventory expected to be received back from
customers as returns. The amount of inventories recognised as an expense and
charged to cost of sales for the year was £1,311.1m (2024: £1,743.3m).
Key sources of estimation uncertainty - Assumptions in relation to impairment
assessment
The Group maintains net realisable value provisions for inventory sold via the
Group's website based on forecast loss rates and for inventory expected to be
sold offsite via clearance routes at the end of its lifecycle. The provisions
write inventory down to its net realisable value, being expected income less
any related selling costs, and reflect both historical trends and current and
forecast economic conditions.
The provisions are calculated using estimates of loss rates and website
sell-through rates, both of which are calculated based on historical data from
the prior 12 months' sales when categorising the stock by age banding.
Provisions recognised are net of any expected proceeds to be received. The
provisions are therefore most sensitive to the following assumptions:
· Forecast loss rates
· Forecast sell-through rates
· Offsite sales price assumptions
The movements in the Group's provisions based on reasonable possible changes
to the above assumptions are as follows:
2025 2024
Decrease in provision Increase in provision Decrease in provision Increase in provision
£m £m £m £m
Using loss rates from 2024 / 2023 (5.0) - - 4.0
A change in the anticipated sell through rates of +/-0.5% (4.2) 4.2 (7.1) 7.1
A change in the anticipated sales price of +/-10% (1.0) 1.0 (2.2) 2.2
Inventory provisions are adjusted at each reporting period end rather than
throughout the year to ensure inventory is not carried at an amount greater
than net realisable value. Write-downs and write-backs of inventory balances
are therefore represented by net movements in the inventory provision.
14 Cash and cash equivalents
2025 2024
£m £m
Cash in hand and bank balances 108.2 83.1
Money market fund investments 123.0 270.2
Short-term deposits 87.7 37.7
Total cash and cash equivalents 318.9 391.0
Cash and cash equivalents includes uncleared payment provider receipts of
£48.8m, which are typically received within three business days (2024:
£68.8m).
Included within cash and cash equivalents is £11.6m (2024: £8.1m) of cash
collected on behalf of partners of the Direct-to-Consumer fulfilment
proposition (Partner Fulfils) and ASOS Fulfilment Services (AFS). ASOS
Payments UK Limited and the Group are entitled to interest amounts earned on
the deposits and amounts are held in a segregated bank account that is settled
on a monthly basis.
15 Trade and other payables
2025 2024
£m £m
Trade payables 122.7 108.1
Other payables 175.0 165.9
Accruals 177.6 242.3
Refund liabilities 77.9 99.2
Deferred revenue 31.6 41.6
Taxation and social security 34.5 14.6
Total trade and other payables 619.3 671.7
Trade payables comprise amounts owed in relation to inventory purchases. Other
payables comprise amounts owed in relation to all other purchases.
16 Borrowings
2025 2024
£m £m
Convertible bond 343.3 478.1
Nordstrom Loan 6.5 19.8
Term Loan 153.8 190.2
Total borrowings 503.6 688.1
Current 96.4 1.6
Non-current 407.2 686.5
Total borrowings 503.6 688.1
Convertible bonds due 2026
On 16 April 2021 the Group issued £500m of convertible bonds. The unsecured
instruments paid a coupon of 0.75% until April 2026, or the conversion date,
if earlier. The initial conversion price was set at £79.65 per share.
During the year, on 19 September 2024, the Group launched a refinancing
exercise of the Convertible Bonds due 2026 as follows:
· £253.0m was exchanged into new Convertible Bonds due 2028;
· £173.4m of the Convertible Bonds due 2026 was accepted for
repurchase at a discount to par of 15%; and
· As a result, £73.6m remains in the Convertible Bonds due 2026.
The new Convertible Bonds were issued at par and carry a fixed annual coupon
of 11%, payable semi-annually in arrears. The initial conversion price has
been set at £79.65, in line with the Convertible Bond due 2026. The Bonds
will be redeemed on 19 September 2028, unless previously converted, exchanged,
redeemed or purchased and cancelled in accordance with the terms and
conditions of the Bonds, at a redemption price of 120% of the principal
amount.
Term loan
In May 2023, the Group entered into a £200m senior term loan and a £75m
super senior revolving facility (together the Facilities) with specialist
lender Bantry Bay Capital Limited through to April 2026, with the optionality
to further extend to May 2028 subject to meeting lender requirements. Both the
senior term loan and RCF (when drawn) bear interest at a margin above SONIA.
The amount available in relation to the RCF is determined by reference to a
calculated borrowing base (derived from inventory and intellectual property,
both with certain adjustments applied) less the amount borrowed under the term
loan. At the year end this was £nil. The RCF incurs commitment fees at a
market rate and is currently undrawn.
The Facilities carry a fixed and floating charge over all assets of the
following chargors in the Group - ASOS Plc, ASOS.com Limited, ASOS
Intermediate Holdings Limited, Mornington & Co (No. 1) Limited and
Mornington & Co (No. 2) Limited.
During the year, on 5 September 2024, the Group secured an amendment and
extension of the existing facilities agreement with Bantry Bay to May 2027
with an option for a 12-month extension. As part of this, £50m of the term
loan was repaid, with a corresponding increase in the available accordion
facility.
In November 2025, the Group entered into agreements to refinance its term loan
facilities. Refer to Note 20 for further information.
Nordstrom loan
On 12 July 2021 the Group announced a strategic partnership with Nordstrom, a
US-based multi-channel retailer, to drive growth in North America. As part of
this venture, Nordstrom purchased a minority interest in ASOS Holdings Limited
which held the Topshop, Topman, Miss Selfridge and HIIT brands in exchange for
£10 as well as providing a £21.9m loan, partially repaid in the prior year.
The loan attracts interest at a market rate of 6.5% per annum. An additional
repayment of £13.3m was made during the year.
The remaining loan balance of £6.5m was repaid after the balance sheet date.
Impact of refinancing on the Group accounts
The impact of the refinancing activities during the year on the Group's
financial statements are shown below:
Balance sheet Cash flow Income statement
Borrowings Convertible Bond Reserve Retained earnings Inflow / (outflow) Refinancing (gain) / loss
£m £m £m £m
As at 2 September 2024 (688.1) (58.9) - - -
Repurchase of convertible bond 140.6 6.8 - (147.4) -
Repayment of loan principal 63.3 - - (63.3) -
Debt modification gain 8.1 43.3 (43.3) - (8.1)
Transaction costs 4.9 0.1 - (10.5) 5.5
Total refinancing impact(1) 216.9 50.2 (43.3) (221.2) (2.6)
Interest expense (64.8) -
Interest paid 32.4 -
As at 31 August 2025 (503.6) (8.7)
1 The total refinancing impact to the income statement is made up of an
£11.6m gain on refinancing of the convertible bonds and £9.0m loss on
refinancing of the term loan.
17 Provisions
Dilapidations Onerous occupancy Total
£m £m £m
As at 2 September 2024 68.7 20.5 89.2
Recognised 1.4 13.0 14.4
Utilised - (3.9) (3.9)
Unwinding of discount 2.6 1.2 3.8
Foreign exchange differences - (1.3) (1.3)
As at 31 August 2025 72.7 29.5 102.2
Current - 4.4 4.4
Non-current 72.7 25.1 97.8
As at 31 August 2025 72.7 29.5 102.2
As at 4 September 2023 53.4 16.8 70.2
Recognised 13.7 5.3 19.0
Utilised - (2.4) (2.4)
Unwinding of discount 2.3 0.8 3.1
Foreign exchange differences (0.7) - (0.7)
As at 1 September 2024 68.7 20.5 89.2
Current - 2.7 2.7
Non-current 68.7 17.8 86.5
As at 1 September 2024 68.7 20.5 89.2
18 Analysis of net debt
Group net debt comprises cash and cash equivalents less any borrowings drawn
down at year-end (including accrued interest), but excluding outstanding lease
liabilities.
2025 2024
£m £m
Borrowings (503.6) (688.1)
Leases (224.5) (289.6)
Liabilities from financing activities (728.1) (977.7)
Cash and cash equivalents 318.9 391.0
Net debt (409.2) (586.7)
Net debt APM (ex-leases) (184.7) (297.1)
The table below sets out the movements in liabilities arising from financing
activities:
Lease liabilities Borrowings Liabilities from financing activities
£m £m £m
As at 2 September 2024 (289.6) (688.1) (977.7)
Cash flows from financing activities
Repayments of principal 25.7 63.3 89.0
Interest paid 6.4 32.4 38.8
Repurchase of convertible bond - 140.6 140.6
Financing fees paid - 4.9 4.9
Non-cash movements
Movement in lease liabilities 42.2 - 42.2
Foreign exchange impacts (2.8) - (2.8)
Debt modification gain - 8.1 8.1
Accrued interest (6.4) (64.8) (71.2)
As at 31 August 2025 (224.5) (503.6) (728.1)
As at 4 September 2023 (329.0) (672.8) (1,001.8)
Cash flows from financing activities
Repayments of principal 25.5 0.5 26.0
Interest paid 5.5 37.1 42.6
Non-cash movements
Movement in lease liabilities 9.9 - 9.9
Foreign exchange impacts 4.0 - 4.0
Accrued interest (5.5) (52.9) (58.4)
As at 1 September 2024 (289.6) (688.1) (977.7)
19 Contingent liabilities
From time to time, the Group is subject to various legal proceedings and
claims that arise in the ordinary course of business, which due to the
fast-growing nature of the Group and its e-commerce base, may concern the
Group's brand and trading name or its product designs. All such cases brought
against the Group are robustly defended and a liability is recorded only when
it is probable that the case will result in a future economic outflow which
can be reliably measured.
The Group is subject to assessments from an overseas customs authority in
relation to import duty for prior financial periods. The Group has appealed
these assessments on the basis that the prior calculations comply with World
Trade Organisation-compliant customs valuation methods. At the balance sheet
date, the appeal process remains ongoing. Based on legal advice and
management's assessment, the maximum exposure is considered immaterial, and
any payments on account in excess of this are expected to be fully
recoverable.
20 Post balance sheet events
In November 2025, the Group entered into agreements to refinance its term loan
facilities. The refinancing will become effective in December 2025, at which
point the Group's existing £150.0m term loan will be repaid and the
associated revolving credit and accordion facilities with Bantry Bay will be
terminated.
The new financing arrangements, provided by a syndicate of private lenders,
are comprised of a £150.0m senior term loan and an £87.5m Delayed Draw Term
Loan facility. These new facilities will mature in November 2030.
Alternative Performance Measures (APMs)
The Group uses the below non-IFRS performance measures to allow shareholders
to better understand the underlying financial performance and position of the
Group. These should not be seen as substitutes for IFRS measures of
performance and may not allow a direct comparison to other companies.
Performance measure Closest IFRS measure Definition How ASOS uses this measure
Like-for-like revenue growth Revenue Like-for-like revenue growth reflects constant currency revenue, which This measure is presented as a means of eliminating the effects of exchange
includes retail sales and income from other services, less adjusting items and rate fluctuations on the year-on-year reported results.
the impact of foreign exchange translation.
2025 2024 Growth
£m £m %
Revenue 2,477.8 2,905.8 (15%)
Adjusting items (Note 3) (13.0) (9.8)
Impact of foreign exchange translation 28.1 -
Like-for-like revenue growth 2,492.9 2,896.0 (14%)
2024 2023 Growth
£m £m %
Revenue 2,905.8 3,549.5 (18%)
Adjusting items (Note 3) (9.8) (11.5)
Impact of foreign exchange translation and LFL financial years(1) 60.7 -
Like-for-like revenue growth 2,956.7 3,538.0 (16%)
1 Removing the impact of four less trading days in FY24
Retail sales Revenue Internet sales recorded net of an appropriate deduction for actual and A measure of the Group's trading performance focusing on the sale of products
expected returns, relevant vouchers, discounts and sales taxes. to end customers. Used by management to monitor overall performance across
markets, and the basis of key internal metrics such as GMV and ABV.
Retail sales exclude income from delivery receipt payments, marketing
services, commission on partner-fulfilled sales, revenue from wholesale sales
and jobber income.
A reconciliation of this measure is included in Note 4.
Gross merchandise value (GMV) Revenue Retail sales excluding adjusting items plus revenue attributable to Flexible This measure reflects the increasing shift to Flexible Fulfilment models and
Fulfilment partners, net of returns and excluding sales tax. is used as an indicator of top-line performance.
2025 2024
£m £m
GMV 2,456.3 2,817.8
Less revenue attributable to partners (123.2) (68.9)
Adjusted retail sales 2,333.1 2,748.9
Adjusting items 6.4 -
Reported retail sales 2,339.5 2,748.9
Like-for-like GMV growth Revenue Like-for-like GMV growth eliminates the effect of exchange rate fluctuations 2025 2024 Growth
on the year-on-year GMV metric. £m £m %
GMV 2,456.3 2,817.8 (13%)
Impact of foreign 27.0 -
exchange translation
Like-for-like GMV growth 2,483.3 2,817.8 (12%)
2024 2023 Growth
£m £m %
GMV 2,817.8 3,405.1 (17%)
Impact of foreign exchange translation and LFL financial years(1) 58.9 -
Like-for-like GMV growth 2,876.7 3,405.1 (16%)
1 Removing the impact of four less trading days in FY24
2024 2023 Growth
£m £m %
Revenue 2,905.8 3,549.5 (18%)
Adjusting items (Note 3) (9.8) (11.5)
Impact of foreign exchange translation and LFL financial years(1) 60.7 -
Like-for-like revenue growth 2,956.7 3,538.0 (16%)
1 Removing the impact of four less trading days in FY24
Retail sales
Revenue
Internet sales recorded net of an appropriate deduction for actual and
expected returns, relevant vouchers, discounts and sales taxes.
Retail sales exclude income from delivery receipt payments, marketing
services, commission on partner-fulfilled sales, revenue from wholesale sales
and jobber income.
A measure of the Group's trading performance focusing on the sale of products
to end customers. Used by management to monitor overall performance across
markets, and the basis of key internal metrics such as GMV and ABV.
A reconciliation of this measure is included in Note 4.
Gross merchandise value (GMV)
Revenue
Retail sales excluding adjusting items plus revenue attributable to Flexible
Fulfilment partners, net of returns and excluding sales tax.
This measure reflects the increasing shift to Flexible Fulfilment models and
is used as an indicator of top-line performance.
2025 2024
£m £m
GMV 2,456.3 2,817.8
Less revenue attributable to partners (123.2) (68.9)
Adjusted retail sales 2,333.1 2,748.9
Adjusting items 6.4 -
Reported retail sales 2,339.5 2,748.9
Like-for-like GMV growth
Revenue
Like-for-like GMV growth eliminates the effect of exchange rate fluctuations
on the year-on-year GMV metric.
2025 2024 Growth
£m £m %
GMV 2,456.3 2,817.8 (13%)
Impact of foreign 27.0 -
exchange translation
Like-for-like GMV growth 2,483.3 2,817.8 (12%)
2024 2023 Growth
£m £m %
GMV 2,817.8 3,405.1 (17%)
Impact of foreign exchange translation and LFL financial years(1) 58.9 -
Like-for-like GMV growth 2,876.7 3,405.1 (16%)
1 Removing the impact of four less trading days in FY24
Performance measure Closest IFRS measure Definition How ASOS uses this measure
Adjusted revenue Revenue Revenue excluding the impact of adjusting items. A measure of the Group's revenue and gross profitability, excluding the impact
of any adjusting items.
Adjusted gross margin None Gross profit divided by revenue and excluding the impact of adjusting items. Reconciliation is shown below:
2025 2024
£m £m
Revenue 2,477.8 2,905.8
Adjusting items (Note 3) (13.0) (9.8)
Adjusted revenue 2,464.8 2,896.0
Gross profit 1,166.7 1,162.5
Adjusting items (Note 3) (4.7) 94.8
Adjusted gross profit 1,162.0 1,257.3
Gross margin 47.1% 40.0%
Adjusted gross margin % 47.1% 43.4%
Adjusted cost to serve None Operating expenses (excluding depreciation, amortisation and impairments, and Adjusted cost to serve reflects the underlying profitability of the business
excluding adjusting items) as a percentage of adjusted revenue. and demonstrates discipline on cost structure.
2025 2024
£m £m
Operating expenses 1,395.5 1,496.4
Less depreciation and amortisation (per cash flow) (166.9) (172.3)
Less impairment (per cash flow) (138.2) (119.9)
Less adjusting operating expenses (Note 3) (195.6) (155.6)
Add back adjusting depreciation and amortisation (Note 3) 4.5 10.7
Add back adjusting impairment (Note 3) 136.8 119.9
1,036.1 1,179.2
Adjusted revenue 2,464.8 2,896.0
Adjusted cost to serve 42.0% 40.7%
Adjusted EBIT Operating profit / (loss) Profit/(loss) before tax, interest, and any adjusting items excluded from A measure of the Group's underlying profitability for the year, excluding the
adjusted profit/(loss) before tax (see below). impact of any transactions outside of the ordinary course of business and not
considered to be part of ASOS' usual cost / income base. Used by management to
monitor the performance of the business each month.
Adjusted profit / (loss) before tax Profit / (loss) before tax Adjusted profit/(loss) before tax excludes items recognised in reported 2025 2024
profit/(loss) before tax which, if included, could distort comparability £m £m
between years. Operating loss (212.3) (331.9)
Adjusting items excluding finance costs (Note 3) 180.1 250.4
In determining which items to exclude, the Group considers items which are Adjusted EBIT (32.2) (81.5)
significant either by virtue of their size and/or nature, or that are
non-recurring. Net finance costs (Note 5) (69.3) (47.4)
Add back adjusting finance costs (Note 3) 3.3 2.9
Adjusted loss before tax (98.2) (126.0)
Add back adjusting items (Note 3) (183.4) (253.3)
Loss before tax (281.6) (379.3)
Details of adjusting items are included within Note 3.
Adjusted cost to serve
None
Operating expenses (excluding depreciation, amortisation and impairments, and
excluding adjusting items) as a percentage of adjusted revenue.
Adjusted cost to serve reflects the underlying profitability of the business
and demonstrates discipline on cost structure.
2025 2024
£m £m
Operating expenses 1,395.5 1,496.4
Less depreciation and amortisation (per cash flow) (166.9) (172.3)
Less impairment (per cash flow) (138.2) (119.9)
Less adjusting operating expenses (Note 3) (195.6) (155.6)
Add back adjusting depreciation and amortisation (Note 3) 4.5 10.7
Add back adjusting impairment (Note 3) 136.8 119.9
1,036.1 1,179.2
Adjusted revenue 2,464.8 2,896.0
Adjusted cost to serve 42.0% 40.7%
Adjusted EBIT
Operating profit / (loss)
Profit/(loss) before tax, interest, and any adjusting items excluded from
adjusted profit/(loss) before tax (see below).
A measure of the Group's underlying profitability for the year, excluding the
impact of any transactions outside of the ordinary course of business and not
considered to be part of ASOS' usual cost / income base. Used by management to
monitor the performance of the business each month.
Adjusted profit / (loss) before tax
Profit / (loss) before tax
Adjusted profit/(loss) before tax excludes items recognised in reported
profit/(loss) before tax which, if included, could distort comparability
between years.
In determining which items to exclude, the Group considers items which are
significant either by virtue of their size and/or nature, or that are
non-recurring.
2025 2024
£m £m
Operating loss (212.3) (331.9)
Adjusting items excluding finance costs (Note 3) 180.1 250.4
Adjusted EBIT (32.2) (81.5)
Net finance costs (Note 5) (69.3) (47.4)
Add back adjusting finance costs (Note 3) 3.3 2.9
Adjusted loss before tax (98.2) (126.0)
Add back adjusting items (Note 3) (183.4) (253.3)
Loss before tax (281.6) (379.3)
Details of adjusting items are included within Note 3.
Performance measure Closest IFRS measure Definition How ASOS uses this measure
Adjusted EBITDA Operating profit / (loss) Adjusted EBIT above, adjusted for depreciation, amortisation and impairments. Adjusted EBITDA is used to review the Group's profit generation and the
sustainability of ongoing capital reinvestment and finance costs.
Adjusted EBITDA margin None Adjusted EBITDA divided by adjusted revenue. 2025 2024
£m £m
Adjusted EBIT (above) (32.2) (81.5)
Add back depreciation and amortisation (per cash flow) 166.9 172.3
Add back impairment (per cash flow) 138.2 119.9
Less adjusting depreciation and amortisation (Note 3) (4.5) (10.7)
Less adjusting impairment (Note 3) (136.8) (119.9)
Adjusted EBITDA 131.6 80.1
Revenue 2,477.8 2,905.8
Adjusting items (Note 3) (13.0) (9.8)
Adjusted revenue 2,464.8 2,896.0
Adjusted EBITDA margin % 5.3% 2.8%
Net cash/(debt) None Cash and cash equivalents less the carrying value of borrowings (including A measure of the Group's liquidity. Further information is included in Note
accrued interest) drawn down at year-end, but excluding outstanding lease 18.
liabilities.
A reconciliation is included below:
2025 2024
£m £m
Cash and cash equivalents 318.9 391.0
Borrowings (503.6) (688.1)
Lease liabilities (224.5) (289.6)
Net borrowings (409.2) (586.7)
Add back lease liabilities 224.5 289.6
Group net debt (184.7) (297.1)
Free cash flow Operating cash flow Free cash flow is net cash generated from operating activities, adjusted for A measure of the cash generated by the Group outside cash flows relating to
payments to acquire intangible and tangible assets, the payment of the M&A and financing transactions, which allows management to better assess
principal portion of lease liabilities and net finance expenses. the cash being generated by the business.
A reconciliation to the cash flow statement is shown below:
2025 2024
£m £m
Cash generated from operations (per cash flow) 159.1 228.0
Purchase of tangible and intangible assets (85.9) (133.5)
Repayment of principal portion of lease liabilities (25.7) (25.5)
Net interest paid (33.4) (31.3)
Free cash flow 14.1 37.7
Net cash/(debt)
None
Cash and cash equivalents less the carrying value of borrowings (including
accrued interest) drawn down at year-end, but excluding outstanding lease
liabilities.
A measure of the Group's liquidity. Further information is included in Note
18.
A reconciliation is included below:
2025 2024
£m £m
Cash and cash equivalents 318.9 391.0
Borrowings (503.6) (688.1)
Lease liabilities (224.5) (289.6)
Net borrowings (409.2) (586.7)
Add back lease liabilities 224.5 289.6
Group net debt (184.7) (297.1)
Free cash flow
Operating cash flow
Free cash flow is net cash generated from operating activities, adjusted for
payments to acquire intangible and tangible assets, the payment of the
principal portion of lease liabilities and net finance expenses.
A measure of the cash generated by the Group outside cash flows relating to
M&A and financing transactions, which allows management to better assess
the cash being generated by the business.
A reconciliation to the cash flow statement is shown below:
2025 2024
£m £m
Cash generated from operations (per cash flow) 159.1 228.0
Purchase of tangible and intangible assets (85.9) (133.5)
Repayment of principal portion of lease liabilities (25.7) (25.5)
Net interest paid (33.4) (31.3)
Free cash flow 14.1 37.7
Performance measure Closest IFRS measure Definition How ASOS uses this measure
Other working capital movements (Per Financial Review) None Removes working capital and cash movements relating to adjusting items. To provide a reconciliation of the working capital movement in the Financial
Statements to the other working capital movement in the Financial Review.
2025 2024
£m £m
(Increase)/decrease in other working capital (per Financial Review) (67.1) 12.1
Comprises:
Working capital per cash flow (excluding inventory) (42.4) 7.1
Working capital relating to adjusting items (see below) (24.7) 5.0
(67.1) 12.1
Working capital relating to adjusting items:
Adjusting items (Note 3) (183.4) (253.3)
Add back adjusting impairment (Note 3) 136.8 119.9
Add back adjusting amortisation (Note 3) 4.5 10.7
Add back commercial operating model change (Cost of sales) (Note 3) 8.3 104.6
Add back share of associate's adjusting results (Note 3) 3.0 -
Less gain on disposal of brands (13.8) -
Less refinancing gain (2.6) -
Add back adjusting finance costs (Note 3) 3.3 2.9
Adjusting working capital before cash impacts (43.9) (15.2)
Cash impact of adjusting items (Note 3) 19.2 20.2
Working capital relating to adjusting items (24.7) 5.0
The Group has added Gross Merchandise Value (GMV) and Like-for-like GMV growth
as APMs this year to reflect the increasing shift to Flexible Fulfilment
models.
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