REG - ASOS PLC - Interim results for the 26 weeks to 1 March 2026
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RNS Number : 5588B ASOS PLC 23 April 2026
23 April 2026
ASOS Plc
Interim results for the 26 weeks to 1 March 2026
Transformation delivering fundamental improvement: 51% Growth in AEBITDA. FY
guidance confirmed
Summary financial results
£m(1) 26 weeks to 26 weeks to Change Adjusted LFL change(2)
1 March 2026 2 March 2025
(H1 FY26) (H1 FY25)
Headline adjusted numbers(3)
Gross Merchandise Value (GMV)(4) 1,170.1 1,277.4 (9%)
Adjusted group revenue 1,113.5 1,291.6 (14%)
Adjusted gross margin 48.5% 45.2% 330bps
Adjusted cost to serve(5) 43.0% 42.1% (90bps)
Adjusted EBITDA 64.0 42.5 21.5
Adjusted EBIT (18.3) (39.6) 21.3
Adjusted loss before tax (52.4) (69.5) 17.1
Net debt (294.9) (275.8) (19.1)
Free cash outflow (92.6) (84.1) (8.5)
Statutory Measures
Group revenue 1,116.0 1,299.4 (14%)
Gross margin 48.6% 45.1% 350bps
Operating loss (100.9) (210.1) 109.2
Loss before tax (137.9) (241.5) 103.6
Financial highlights
· GMV -9% YoY, with positive underlying trends: Early signs of topline
improvement are building, with the UK outperforming the Group at ‑5% GMV YoY
and Womenswear delivering a c.10ppts improvement in its GMV(6) growth rate
versus H2 FY25. This has been achieved through stronger product relevance,
enhanced levels of marketing and new initiatives focused in priority
categories.
· Improved trajectory of customer growth: New customers, a strong lead
indicator of topline growth, at c.+10% YoY in the UK. In our top four markets,
new customer performance on a 6-month rolling basis has reached growth of +2%
YoY for H1 FY26 compared to -12% YoY at the end of FY25, representing 13
consecutive months of improvement. Customer database trajectory is
strengthening with churn reduced 150bps YoY in H1.
· Continued gross margin gains: Adjusted gross margin improved +330bps
YoY as we continued to reap the benefits from our new commercial model and
successful scaling of our Flexible Fulfilment model to >20% of 3rd Party
Brands GMV. Adjusted gross margin has seen YoY improvement for 8 consecutive
quarters, with a total improvement of c.600bps over the last 3 years.
· Sustained supply chain enhancements: Warehouse optimisation and the
successful renegotiation of key logistics and carrier contracts delivered a
150bps YoY reduction in total supply chain cost to serve. The supply chain
transformation of ASOS has resulted in a sustained reduction with supply chain
cost to serve reducing by more than 500bps over the last 3 years.
· AEBITDA growth of 51% YoY: Gross margin and cost management rigour,
including the enhanced transparency of our returns policy and the supply chain
efficiencies referenced above, all contributed to a 51% AEBITDA improvement
and a further +30% YoY step-change in our profit per order.
· Resilient execution in response to US tariffs: The profitability gains
outlined above, were despite the introduction of additional US tariffs and
duties just prior to the start of the period. The situation was well managed
with swift mitigations enacted to protect service levels and customer
experience in this core market. c.£7m of the tariffs recognised related to
IEEPA in the period.
· Free cash flow: Free cash outflow of £92.6m was in line with our
expectations, reflecting higher interest costs due to no equivalent
convertible bond interest due in H1 FY25, alongside our normal H1 seasonality.
· Rigorous capital management: The Group has continued to reshape its
debt, refinancing in November 2025. Subsequent to period-end, the Group repaid
the Convertible Bonds due 2026 in full for cash consideration of £73.6m.
During the period, net debt, excluding leases, increased by £19m YoY to
£295m mainly due to non-cash interest effects.
Strategic and operational highlights
· Relevant Fashion Product
o Continued to scale a structurally faster, more reactive product model,
with Test & React (T&R) growing +6ppts YoY.
o Reactivated Own‑Brand activewear label 4505, achieving +20% GMV(6)
growth YoY, supported by new distinctive brand partnerships and strengthened
our position in the highly attractive sportswear category.
o ASOS Fulfilment Services (AFS) has continued to build momentum since
its launch in H2 FY25, increasing its contribution to 3(rd) party GMV by 9ppts
HoH, with 9 brands adding increased choice and relevance for our customers.
o Further evolution of our Partner Brand portfolio, onboarding c.60 new
brands in H1, with c.40% contribution from our expanding Face + Body
offerings.
· Inspirational Shopping Experience
o Delivered a step‑change in the ASOS app experience, shifting from
transactional browsing to personalised, immersive and outfit‑led shopping
via c.50 enhancements, leveraging on AI powered processes.
o Initiatives launched toward the end of the period have started to
translate into higher engagement and early sample results showing a c.9%
uplift in net sales per customer and c.10% uplift in number of orders per
customer.
o Launched 'The Heart' - a monthly edit that showcases ASOS's best
blend of Own Brands and Partner Brands, curated in a single, inspiring
destination - which has delivered more than double the rate of sale versus our
'New In' product range.
· Efficient Operating Model
o Deepened our relationship with Microsoft as one of its top partners
in UK Retail, scaling and embedding AI into core workflows across design,
buying and customer care. We also achieved early success, utilising AI in our
Studios, to enable the creation of more than 1,600 additional campaign assets.
o Automation of our Berlin fulfilment centre is expected to return a
c.10% cost saving, while also providing capacity to support future growth. Our
renegotiation of carrier contracts improved supply chain cost to serve.
o Introduced a new returns policy underpinned by greater transparency
and customer education, delivering a +160bps YoY improvement in the underlying
returns rate in H1.
o Our logistics network has responded flexibly and mitigated recent
cost pressures relating to the evolving situation in the Middle East,
reflecting improved supply chain agility, increased near-shore supply and
deepened relationships within our logistics network.
Outlook & current trading
· Current trading is in line with expectations - GMV growth has shown
further sequential improvement in Q3 to date, as KPIs continue to reflect the
operational and commercial improvements delivered in H1.
· New customer growth was +9% for the Group in March, the first month of
growth since September 2021.
· The Group has initiated the process to pursue refund claims in relation
to the £7m IEEPA tariffs paid in H1 FY26.
· We have taken proactive actions to help mitigate inflationary impacts
and supply chain issues arising from the conflict in the Middle East. We
continue to monitor developments closely and are continuously reviewing a
range of levers to protect profitability whilst ensuring seasonally relevant
product arrives to meet customer demand.
· FY26 guidance unchanged:
o GMV to show an improving trajectory throughout the year, 3-4ppts ahead of
revenue
o Gross margin improvement of at least 100bps to 48-50%
o Adjusted EBITDA of £150m-180m
o Broadly neutral free cash flow
CEO Review
The first half of 2026 has seen significant progress and momentum for ASOS and
I would like to thank our ASOSers for their commitment and energy during this
period of delivery and transformation. We have achieved a lot. Together, we
are taking decisive steps towards re-establishing ASOS as a leading online
fashion destination. And even more exciting, there's a lot more to come.
Global destination for young fashion lovers
ASOS has the ambition to be the most inspirational destination for young
fashion lovers on the planet. This ambition is built on three core pillars:
our capacity to provide the most relevant product to our customers; providing
the most inspirational shopping experience; and underpinning this with an
efficient and flexible operational model. It is the combination of these three
pillars that differentiates ASOS and will turn us into the reference of the
online fashion market.
Our capability to deliver the most relevant product to our customers is built
on a unique combination of ASOS-owned brands and the most relevant third-party
brands, a proposition available only at ASOS. Our own brands are supported by
a fast and agile T&R model, which can bring product to market in as little
as three weeks. This enables us to respond quickly to emerging trends and
offer the right product, at competitive prices and with consistent quality,
reinforcing ASOS as a destination for fashion first customers. Alongside this,
ASOS offers a broad and carefully curated selection of established and
emerging brands from around the world, making us both a destination for
leading brands and a platform for discovering new brands and new fashion.
This unparalleled assortment is the base for the most inspirational shopping
experience in the world. A shopping experience built around outfits,
personalisation and a distinct visual language. At ASOS we are convinced that
fashion consumers prefer to see and buy items in the context of an outfit,
rather than individual items. As a result, we focus on presenting our products
in relevant outfit‑based contexts, tailored to individuals using our insight
into customer preferences alongside our ability to identify emerging trends
benefiting from our role as fashion creators. This ultra-personalised shopping
experience is enabled by a decisive adoption of AI across different processes
and activities in the organisation, from generation of content to
personalisation algorithms. These personalised outfits are brought to life
through a unique and widely recognised visual language that resonates strongly
with young fashion customers. ASOS is the home of styling and stylists, and
the perfect place to answer the eternal question, what should I wear tonight?
Underpinning all this is an efficient operational model focused on our ability
to be competitive and to continuously reinvest in our customer proposition, as
well as providing the flexibility and agility necessary to adapt to the
ever-changing environment and to the growing demands of our customers.
The combination of these three capabilities makes ASOS a unique value
proposition to our customers and positions ASOS at the forefront of
transforming the online fashion experience, from transactional browsing to a
more inspirational, intelligent and engaging way to shop.
The transformation of ASOS is happening
In 2022, we were aware that ASOS needed to undergo a major transformation and
deliver structural change to achieve our ambitious vision. We put in place a
comprehensive turnaround plan centred around three distinct phases. First, we
focused on dealing with the most pressing issue; our stock and debt levels.
Second, we focused on transforming our business model to ensure ASOS can
deliver sustainably profitable growth, with a renewed emphasis on building
healthier, more balanced relationships with our customers. This involved
moving from a promotion-led model to one centred around excitement, with
customers engaging with ASOS to discover something great rather than hunting
for a bargain. With the fundamentals of our model fixed, our attention would
switch to growth, and to regaining the hearts and minds of consumers.
Until recently, we have been focused on solving the first two steps of our
journey. And as we shared in November 2025, we have significantly moved the
dial on both fronts. The time has come to focus the organisation on the third
step of our transformational journey. Over the course of H1 FY26, we have an
expanding list of green shoots of growth and have delivered sequential
improvement in our GMV trend in Q1, Q2 and Q3-to-date. This improving trend
has followed a clear focus on the most significant parts of our business -
Womenswear and UK. We have prioritised rebuilding our customer database,
starting with the attraction and retention of new customers in our four core
markets.
Financial review of H1 FY26; a solid evolution
Our financial performance during the first half demonstrated steady progress
on topline as GMV sequentially improved to
-9% YoY and we saw evidence of strengthening trends across several priority
areas of the business. Adjusted gross margin expanded by 330bps YoY to 48.5%,
marking the eighth consecutive quarter of YoY adjusted gross margin
improvement and a c.600bps expansion over 3 years, reflective of improved
buying, a significant increase in full price sales mix, supply chain
management enhancements and the scaling of our Flexible Fulfilment model.
Cost discipline remains critical, reflected by the 150bps YoY improvement made
in our supply chain cost to serve and more than a 10% reduction in absolute
fixed costs. The impact from operational deleverage of 200bps YoY, alongside
the structural impact of our AFS model growth impacting cost-to-serve by
60bps, resulted in an increased total adjusted cost to serve of 90bps YoY.
Adjusted EBITDA increased by 50% YoY to £64.0m (H1 2025: £42.5m) driven by
strong commercial discipline and operational execution, and against
significant increases delivered last year, having increased almost 14x over
the last 3 years as the Group has delivered structural improvements in our
model.
More detail can be found in the CFO Review.
Strategic Review: Time for growth at ASOS; the initial steps
Growth trajectory showing early signs of momentum in priority areas
We approached FY26 with a clear and structured plan to reignite growth,
recognising that restoring topline momentum is a staged process that requires
disciplined choices and a focused allocation of capital. This meant a targeted
approach to delivering immediate shifts in performance as well as rebuilding
our customer database for sustained long-term growth. We have focused on the
incremental gains within our existing customer base through our improved
product and experience, as well as rebuilding our customer base through
targeted new customer acquisition.
New customer growth was +2% YoY across our top four markets at the end of the
period on a 6-month rolling basis, representing a material shift from the
double‑digit declines seen as recently as H2 FY25. Contribution from new
customers builds over time, so the return to growth of new customers is a
positive lead indicator. Reactivated customers are also achieving growth
across our top four markets, contributing positively to the churn rate
reduction of 200bps YoY. As a result, the customer database across our top
four markets is stabilising, declining just 2% versus FY25 year end. The rate
of total database decline decelerated, improving by c.1ppt each month so far
in FY26.
While many of the product and experience enhancements benefit the global
customer, we have concentrated resources where ASOS has the strongest heritage
and greatest ability to drive change at pace given our existing customer
loyalty. This meant prioritising 1) our largest market, the UK; and 2) our
largest category, Womenswear. Early outcomes on both areas provide confidence
in this approach. This reinforces our belief that growth is being rebuilt
through a coherent strategy, executed with intent, rather than isolated
actions.
Womenswear, which is almost three-quarters of our Group GMV(6), delivered a
c.10ppts improvement in YoY growth from H2 FY25 to H1 FY26. This improvement
reflects stronger customer acquisition supported by clearer product relevance
and greater confidence at the point of purchase. Strength across our
Womenswear Partner Brand portfolio has been particularly notable, with GMV(6)
+6% YoY, driven by consistently strong brand launches, more effective brand
activations and improved availability in core Partner Brands, including those
supported through AFS. Increased utilisation of T&R in Womenswear has
supported in season relevance, sell-through and GMV(6) growth of more than 25%
YoY. We saw outstanding performances in Outerwear, Tops and Evening Dresses -
all categories in which ASOS has traditionally demonstrated strong trend
relevance and together delivered c.10% YoY GMV(6) growth. This progress
reinforces our conviction that the initiatives anchored in Womenswear, from
T&R to The Heart, are working.
The UK remains our primary market and a key leading indicator for the Group,
where many of our priority initiatives have landed. In H1, UK GMV outperformed
the Group at -5% YoY, reflecting the benefits of sharper marketing, improved
product relevance and a clearer, more engaging customer journey. Importantly,
this focus has translated into greater stability in the customer base, which
has remained broadly in line with the FY25 year end, while new customer growth
has delivered c.10% YoY growth and churn has continued to reduce, 130bps YoY.
We are confident that the actions taken in the UK are gaining traction,
particularly in marketing, and provide a strong template for other markets
over time.
We have implemented a very detailed set of initiatives on these focus areas to
fuel growth in the first six months of the year, falling under our three
Strategic Pillars: 1) Relevant Fashion Product; 2) Inspirational Shopping
Experience; and 3) Efficient Operating Model.
Strategic Review: Our achievements across H1
RELEVANT FASHION PRODUCT: developing speed, quality and curation at scale
Product sits at the heart of our strategy. In H1, we doubled down on the areas
we feel most directly influence customer engagement - strengthening the
relevance and desirability of our product through speed and quality but also
sharpening our fashion authority through more moments of curation across our
Own Brand and Partner Brand products. Our focus has been on ensuring customers
find product that feels right for the moment - better styled, better made, and
easier to shop with confidence - all underpinned by a faster, more insightful
model.
Own Brand driving relevance with pace
Speed and flexibility remain critical enablers of relevance. T&R grew
+6ppts YoY as a proportion of our Own Brand sales, scaling towards our
medium-term target of 30%, embedding a structurally faster approach that
allows us to react in-season to what customers are buying and wearing.
Notably, we added new categories, such as Tailoring, which has gained early
traction, accounting for c.11% of T&R sales at the end of H1 FY26 and
reinforced our reputation for quality in a technically demanding category. Our
efforts to react fast to the market go beyond our T&R lines, and overall
lead times have improved by more than 30 days YoY, supported by stronger
supplier partnerships, improved data visibility and enhanced operational
tooling. For customers, this means faster access to newness and greater
confidence in product availability.
The relaunch of our Own Brand activewear label, 4505, provides a clear example
of how our T&R capability is delivering impact by enhancing product
relevance. The brand relaunch has been popular with customers, with +20% YoY
GMV(6) growth, with our ability to react to demand signal and refining trend,
colour and silhouette in season, adding to the success of the relaunch. Across
our product offer, the ability to produce faster iterations improved product
relevance across both Womenswear and Menswear and demonstrated how T&R
translates speed and insight into commercial momentum.
Alongside speed, we have continued to raise the bar on Own Brand quality,
focusing on fit, consistency and execution across the entire product journey.
This has been underpinned by deeper supplier relationships, standardised fits,
and increased quality‑control coverage across key sourcing regions. This
work is fundamental to rebuilding customer trust and driving repeat behaviour,
and we are already seeing early benefits, with returns linked to "doesn't fit
me" and "poor quality/faulty" declining 80bps YoY.
The best portfolio of brands in the market
Our Partner Brand portfolio is a key source of differentiation, allowing us to
curate the best outfits, pairing culturally relevant brands with our Own Brand
product. We launched c.60 new brands, including IAM GIA, Ruched & Ready
and Calzedonia, prioritising our core fashion-conscious female customer, as
well as expanding our assortment in Menswear brands such as Ice Cream and True
Religion. During H1, we have radically enhanced the onboarding process for
Partner Brands, reducing integration time by up to 80%, supporting a more
cohesive, fashion-led customer experience.
Exclusive collaborations continue to play an important role in strengthening
relevance and authority across key categories. Our exclusivity agreements have
more than doubled from 15 to 40 brands over the past two years, giving ASOS
authority in key categories such as dresses and occasion wear. A standout
example is our partnership with adidas, as the ASOS x adidas Drop 2 ranked
among the most in‑demand launches on the platform in H1. Last week the third
drop launched, deepening the partnership and offering unique pieces that
customers cannot find anywhere else. Drop 3 is centred around outfit building,
spotlighting our ability to push iconic sportswear into more expressive,
contemporary territory through co-ords, outerwear and layering. The launch
delivered a halo effect of more than 40% YoY in adjacent adidas product with a
sell-through of more than 80%. In a partnership first, the drop was available
both online and at adidas' London Oxford Street flagship store, marking a
significant step in extending curated collaborations into physical retail.
Another key milestone of this launch was making it available for consumers in
the US for the first time, which contributed to 20% of sales, and 50% of
customers who shopped in this launch were new or reactivated. We will continue
this approach, launching further exclusive collaborations in H2, including
Barbour. Our first to market partnerships with emerging brands, combined with
regional exclusivity arrangements, ensure we remain highly relevant.
Additionally, we have worked hard to diversify our Partner Brand offering
where the most pronounced shift has been increasing our mix into higher-end
brands, onboarding more than 50 in the last 18 months, reflecting the broader
shift in fashion we're seeing towards quality and brand storytelling.
Another relevant aspect is the scaling of our Flexible Fulfilment model to
more than 20% of Third-Party Brand GMV, enabling broader, deeper assortments
with improved availability and reduced inventory risk. Refinements to our
Partner Fulfils (PF) operating model with key partners, such as Bestseller,
where we now operate across 15 brands, have helped deliver double-digit full
price growth for this business division in H1 YoY. Moreover, following its
launch in H2 FY25, AFS has scaled rapidly, increasing its contribution to
3(rd) Party GMV by 9ppts HoH. The model has been particularly successful with
Inditex, where we have seen YoY sales growth and a shift to a predominantly
full-price model. As such, we have deepened relationships with partners,
through additional brand activations, including Oysho, as well as expanding
internationally with brands such as House of CB.
These improvements across speed, quality and curation are translating into a
materially better experience for customers with more relevant product, greater
confidence at the point of purchase and stronger full-price appeal. Customers
are responding to fresher newness, reflected in a record performance from our
A/W 2025 range, delivering a YTD sell-through rate c.5ppts higher YoY for the
Group. Rather than relying on discounting to stimulate demand, we are
increasingly earning customer commitment upfront by getting the fashion,
timing and curation right. This shift is evidence of a move towards building
value through product desirability and trust, creating a more sustainable
relationship with customers over time.
INSPIRATIONAL SHOPPING EXPERIENCE: from transactional browsing to
confidence-led, immersive discovery
At ASOS we are determined to make online shopping the most inspirational
experience a customer can have, and with the support of new technological
developments we are sure the time to revolutionise online shopping has come.
This transformation is built on a new way of positioning ASOS in front of our
customers, a deliberate investment into a more inspiring app and the
development of the most inspirational loyalty program in the industry.
Reinvented Marketing
During H1, we adopted a more balanced and intentional approach to marketing as
part of our strategy to reignite customer growth and strengthen brand
relevance. Overall marketing investment increased by 50bps YoY as a percentage
of sales, which included the increased use of performance marketing to support
new customer acquisition.
We strengthened the effectiveness of our performance marketing through
improved measurement, reducing cost per visit by more than 10% YoY in H1.
Through a regular cadence of incrementality testing in the UK across our
largest paid channel, we are seeing a material improvement in the
effectiveness of our spend, with pay‑per‑click incrementality up c.20%
versus our previous measurement. This improved efficiency is reinforced by the
growing role of CRM, which converts demand more effectively once customers are
acquired. Our contactable base continues to scale, increasing c.10% YoY, while
maintaining stable engagement. The volume of personalised communications has
increased four-fold with intent‑led triggers such as Back in Stock, Low in
Stock and Price Drop alerts accounting for over two‑thirds of CRM
contribution and delivering materially higher engagement than generic
messaging. Together, this tighter integration between performance marketing
and CRM is improving the quality of customer acquisition, increasing
conversion and supporting sustainable, more efficient growth.
We stepped up brand-led marketing to reinforce ASOS's distinct fashion
authority and raise awareness in key markets. This included a programme of
high impact popups in locations such as Carnaby Street and Bloomsbury in
London, New York and Aspen, alongside expanded out-of-home campaigns -
particularly in the UK - to create a more consistent, 'always-on' brand
presence. We now plan and execute our brand marketing activity through a
coordinated, end‑to‑end calendar across all channels, structured around
key product moments, maintaining consistency that positions ASOS as a
destination for styling, with clear and aligned messaging on the very best
product we have to offer.
This mix of performance and brand activity is designed to drive short-term
engagement while building longer-term loyalty and consideration, supporting
sustainable customer growth over time.
Sharper outfit curation
One of the clearest expressions of our fashion authority launched in H1, is
'The Heart', our monthly curated edit that brings together standout Own Brand
and Partner Brand products in one inspiring destination. By combining style
authority, quality, and value through distinctive visual storytelling, 'The
Heart' makes it easier for customers to discover what makes ASOS unique. Our
view that the power of curation and storytelling drives product discovery has
been reinforced by 'The Heart's' outperformance versus our broader 'New In'
range, delivering more than double the rate of sales. In a world where
customers struggle with choice rather than access, our role is to inspire, not
just to offer more.
Innovation at pace
With significant investment being made to enhance customer experience, we
deliberately focused on concentrating efforts in our highest-value channel -
the ASOS iOS app. We know that while customers browsing via the website often
demonstrate strong purchase intent, those who browse through the app are
significantly more likely to engage, convert and repeat, driving higher
lifetime value, with new customers acquired via the app delivering nearly
double the lifetime value of web customers.
During the period, we increased focus on app acquisition, deploying more
targeted prompts across the web journey to encourage customers to download and
shop via the app. This has resulted in a strong uplift in first-time app
downloads, moving from double-digit YoY decline at the start of the period to
more than 30% YoY growth by the end of the period, with clear month-on-month
(MoM) sequential improvement. Importantly, engagement metrics are responding
well - monthly active users (MAUs) have seen a stark recovery, delivering a
c.30ppts improved trajectory from September 2025 through to March 2026. Daily
active users (DAUs) are recovering faster than MAUs, with the return to YoY
growth in March indicative of stronger habit-forming behaviour from our
customers.
Starting in November 2025, we began a comprehensive reinvention of the ASOS
app to re-engage customers at scale. The revamp is anchored around five core
principles: immersive, personalised, outfit based, agentic shopping and
community. Key enhancements included a refreshed homepage with a dedicated
'For You' feed tailored to individual style signals, one of the market's
fastest 'Virtual Try On' to increase confidence at the point of purchase, and
the ability to follow brands. Outfit based shopping is embedded throughout the
journey via features such as 'Ways to Style' and 'saved looks', supported by
richer imagery, autoplay video and gesture-led navigation. Deeper integration
of community content has added a more social and inspirational dimension,
shifting the experience from transactional browsing to confidence led
discovery.
Execution pace is becoming a key advantage for us. YTD, we have rolled out
c.50 app enhancements, supported by a rigorous test and learn engine within
our digital product teams. The number of experiments conducted in FY26 so far
have already exceeded that of FY25 by more than 10%, and we have reduced our
average test duration by 50% YoY. While many of these enhancements were
introduced towards the end of the period, early sample results are encouraging
showing a c.9% uplift in net sales per customer, a c.10% uplift in number of
orders per customer and higher engagement, with the DAU/MAU ratio up +60bps
YoY by the end of the period. As a result of improved experience and
engagement, our app ranking on the Apple Store has strengthened, improving by
c.10 places since the start of January 2026, to rank within the top 40 UK
shopping apps.
Loyalty as a further lever to deepen engagement and retention
ASOS.World was created around inspiration, offering our customers early access
to some of our most in-demand product drops, including the Face + Body advent
calendar, and the possibility to access exclusive and unique in-person events
and even co-design product collections. For our highest-value, Tier 4 members,
we delivered more than 15 exclusive in-real-life experiences in the last 12
months, building emotional loyalty and long-term advocacy.
Our loyalty programme continues to scale strongly across all launch markets.
In the UK, membership has reached c.3.5m and a c.60% adoption rate, within 12
months of the programme's launch. Early international adoption across the US,
Germany and Austria has been encouraging, with all geographies on track to
exceed a 20% adoption rate by the end of FY26. Tier progression in the UK is
tracking positively, with net c.3,000 customers upgrading daily. Our highest
Tiers, 3 and 4, are performing particularly well with early indicators showing
a net average customer value uplift of c.20% and c.9% respectively, alongside
material increases in order frequency, up c.17% for Tier 3 and c.8% for Tier
4. Our most successful initiative to date has been the February 'Made by
Members' campaign, reinforcing the power of loyalty, deeper co-creation,
data-led design and speed to create more relevant, in-demand product. Each
month, members vote on design elements such as print type, scale and tone,
with the T&R team rapidly moving the winning concepts into production. The
level of engagement from loyalty members, which was more than five times that
of other campaigns, coupled with the strong sell-through rates, has resulted
in us turning this into a monthly event.
EFFICIENT OPERATING MODEL: AI-enabled efficiencies and continued cost
discipline
Over recent years, ASOS has made substantial progress in building a more
efficient, resilient and scalable operating model. This has involved
simplifying processes, improving execution and embedding greater discipline
across supply chain, fulfilment and customer operations, creating a business
that can provide enhanced customer service while delivering structurally
stronger economics and unlocking the ability to reinvest into product,
experience and marketing. Furthermore, these structural improvements give us
the ability to respond quickly and effectively to the dynamic environment of
the fashion industry, or to external shocks with minimal impact to customer
experience or strategic momentum. Our ability to absorb these headwinds
reflects the structural improvements already embedded in the operating model,
including a more agile supply chain and diversified sourcing routes. While
tariffs and geopolitical disruption remain external risks, their impact has
been managed with discipline and control, reinforcing the strength and
flexibility of the model we are now operating.
Execution on supply chain and returns continues to deliver
We sustained the positive momentum established in FY25, delivering further
operational efficiencies across the Group. We took actions in the first half
that will deliver annualised central cost efficiency gains of over 15%. The
successful completion of the mothballing of the Atlanta site helped to reduce
fixed costs more than 10% YoY. In addition, warehouse optimisation, together
with the benefits of carrier contract renegotiation, reduced supply chain cost
to serve by 150bps YoY and shortened time to market by more than 6 weeks,
improving the seasonal relevance of our stock. As part of the continued
transformation of our Berlin fulfilment centre, we introduced a new "pick from
carton" process, transitioning from fully manual picking to smart automation.
The new model is around three times faster and is expected to reduce
productive labour costs at the site by c.£2.5m per annum, representing a
c.10% saving, while also providing capacity to support future growth.
In December, we introduced an update to our returns policy which involved the
launch of our returns transparency tool. Customers can view their personal
return rate in the ASOS app, along with guidance and tips designed to help
them make more informed purchasing decisions. This new policy has brought a
1ppt benefit to the underlying returns rate for each month it has been active
with the overall H1 underlying rate improving by +160bps YoY. The financial
impact on our unit economics has been material. The supply chain efficiencies
and returns rate transparency, together with the gross margin improvement,
ensured that we delivered a further increase in profit per order, +30% YoY.
AI as an accelerator of efficiency
A core enabler of making further improvements to our operating model, has been
Artificial Intelligence (AI). We are leaning into its adoption in a
deliberate, scalable and business‑embedded way with two clear priorities.
First, we deploy AI to enhance the customer experience, making it more
seamless, personalised and confidence-led. Second, we use AI to improve
efficiency within the business, freeing up capacity to reinvest in product,
experience and marketing.
AI is already enhancing how customers discover, engage with and receive
services from ASOS. In customer care, we launched and rapidly scaled our AI
Assistant across all markets, focusing on the highest volume customer
journeys. The solution now supports 20 fully built intents, integrated with
orders and returns to deliver faster, more personalised resolutions. Across
1.5m customer conversations handled, positive customer feedback exceeded 85%,
up from c.50% in the legacy experience. Our cost per customer contact
contained by the AI Assistant has been reduced by more than 90% and c.25% of
refunds were automated. The start of H2 has seen automation scaled globally
across missing returns, missing items, and to 100% of UK traffic, driving
meaningful efficiency gains.
Alongside these customer first applications, we have focused on embedding AI
into the core operating model to increase efficiency and scalability.
Following the completion of a new strategic alliance with Microsoft in
November - with whom ASOS is now one of the top UK retail partners - we
materially accelerated AI adoption across the organisation. Access to advanced
M365 Copilot expanded from c.12% to 90% of the workforce, placing AI directly
into everyday tools and workflows. This has enabled teams to use ASOS data
securely to support faster decision-making, improved insight and reduce manual
effort. Adoption has scaled rapidly across functions, unlocking c.35,000 hours
of productivity capacity in the first half of FY26, and creating tangible
headroom to focus more time on customer-facing activity and commercial
priorities.
Embedding AI into our commercial functions is already delivering impact.
Today, AI is used to write more than 15% of our software and make c.20% of our
buying decisions. We are innovating at pace, integrating AI into product
design, buying and content creation processes. This has streamlined
collaboration, leading to faster, more confident decision-making across the
product critical path.
Crucially, these three examples provide a scalable blueprint for automation
across the business. Aided by our strategic alliance with Microsoft we will
unlock faster, more accurate resolutions and create the foundation for broader
applications in other operational areas.
Looking ahead: Fuelling our growth
Driving sustainable growth on our structurally profitable base
As we move into the second half of FY26 and look to the medium term, our
approach to growth remains deliberate and focused. We are building on the H1
structural progress and scaling the initiatives that are improving customer
engagement and commercial performance. Our approach will remain the same,
focused on accelerating momentum where we are already seeing traction; then
replicating these learnings more broadly across the Group.
Our growth strategy is centred around a short-term focus on rebuilding the
customer database, through stronger acquisition and improved retention. New
customer performance has responded positively, but we know the new customer
GMV contribution builds over time. Improved retention will be the second
priority. Longer-term, our focus is to convert improved engagement, confidence
and relevance into sustained repeat behaviour and, ultimately, GMV growth.
We have a similar short-term prioritisation of the UK, our core market, where
ASOS is positioned as fashion for everyone and continues to act as the primary
lead indicator for the Group. Furthermore, womenswear, our largest category
and core customer base, remains central to this approach and we will
prioritise relevance, breadth and inspiration to reinforce our leadership
position.
Longer-term, as we extend these successes into other markets and categories,
our approach is consistent in principle but nuanced in execution, adapting to
reflect differences in customer behaviour, market maturity and brand
awareness. In international markets, this means applying the same central
principles of relevance, inspiration and confidence-led shopping, but
targeting specific customer segments where ASOS has a clear right to win,
rather than pursuing broad-based coverage. We are taking a global approach
where relevant, but localised when needed. The US is a clear example of this
in practice: we are focused on fashion-forward customer segments aligned to
our strengths in trend, styling and inspiration. We will replicate this
localised model and introduce to other territories over time. A similar
approach applies by product category. We will lead in Womenswear, where ASOS
has scale, authority and customer relevance. In Menswear, the focus remains
more targeted as we rebuild momentum, emphasising functional fashion delivered
with a clear styling edge rather than broad, generalist positioning. This
disciplined focus allows us to deploy capital and capability where returns are
highest while creating a repeatable model for future expansion.
Over the course of the next six months, we will continue going deeper in most
of the actions we have been executing over the first half of the year.
Nevertheless, there are four key areas where we plan to make additional
effort.
Integration of AI to maximise our connected model
AI will play an increasingly important role, both as a customer-facing
capability and as an enabler of scale as it is embedded through customer
experience, marketing and product. Leveraging Microsoft's platform and
tooling, we will deliver significant enhancements to our in-app AI Stylist,
roll out AI-enabled content creation across the business and scale our AI
capabilities across design, buying and software.
On the customer side, we will continue towards more personalised,
conversational and agentic shopping experiences, allowing customers to
discover, select and shop with greater confidence. Our focus is on making the
AI Stylist more intelligent, personal and useful over time, with an improved
understanding of each customer's preferences, behaviours and past
interactions. This will allow the Stylist to retain context across sessions
and provide more consistent, relevant guidance, helping customers discover
outfits that feel right for them quickly and confidently. Longer-term, our
ambition is for the AI Stylist to evolve into a trusted, always on companion
within the app, supporting customers throughout their shopping journey while
reinforcing ASOS's differentiation in confidence-led, personalised fashion
shopping at scale.
We are transforming how we present product and deliver inspiration, setting up
AI Studios. AI Studios uses generative AI alongside ASOS's styling expertise
to create product imagery and content at scale such as model imagery, styled
looks, video and contextual visuals. AI Studios has already been used to
deliver a step‑change in content volume and variety, most notably during
April's 'The Heart' campaign, where it enabled the creation of more than 1,600
additional assets that would have required c.9 extra shoot days using
traditional methods. This capability is enhancing fashion storytelling at
scale, allowing us to put fashion in a vast array of contexts and improving
inspiration and product discovery for customers. Due to its success in
delivering 95% of SKUs for 'The Heart' in April, we will be rolling this out
more broadly across our Own Brand products which will ultimately provide
customers with endless options to personalise and create outfits.
AI will continue to drive efficiency across the operating model, improving
decision quality, speed and flexibility, allowing us to reinvest into product,
inspiration and marketing. We are consolidating our core ERP onto Microsoft
Dynamics, bringing fashion and non-fashion buying, inventory and financial
processes onto a single, integrated platform. The platform will create a more
productive environment for buyers and merchandisers through agents that remove
repetitive tasks, while upgrading our financial ledger to an AI-supported,
largely no-touch period end processes. These changes will improve
decision-making speed and accuracy, strengthen operational control and release
capacity across the business, supporting a more efficient operating model that
can scale alongside growth.
A superior shopping experience
The ASOS app will remain the primary engine for improving customer experience,
engagement and growth. Building on the step‑change delivered in H1, we will
accelerate the rollout of features that deepen personalisation, strengthen
outfit‑based discovery, leverage agentic commerce and build stronger
connections through community. This includes scaling our Virtual Try‑On
capability beyond individual items to full outfits and across a significantly
larger share of our inventory, helping customers visualise looks more
confidently at the point of purchase. We are also embedding user‑generated
content more deeply throughout the app experience, from the homepage through
to product detail pages, bringing real people and real styles into discovery
and inspiration. This community‑led content will be increasingly shoppable,
enabling customers to move more seamlessly from inspiration to purchase.
Alongside this, we will continue to enhance the app's core experience through
the implementation of a dedicated notifications centre to support timely and
relevant engagement and a more visual, streamlined onboarding journey that
accelerates discovery from day one. As community participation and engagement
scale, we expect this to create a richer, more dynamic shopping experience,
reinforcing the app as a destination for inspiration as well as conversion.
Aligning with how our customers want to shop is crucial for delivering growth.
As such, we are trialling an extension to the UK Next Day Delivery cut-off
from 10pm to 11pm to better match peak engagement times and provide greater
flexibility. Early tests have indicated more than a £10m net revenue impact
per annum alongside a variable contribution benefit.
Similarly, we are scaling Exchanges in the UK as a more convenient and
intuitive alternative to traditional returns, benefiting customers by helping
them secure the right item more quickly, while enabling ASOS to retain demand
and improve customer satisfaction. Historically, only c.1-3% of customers who
returned an item went on to purchase a replacement, resulting in lost sales.
Since introducing exchanges, c.9-11% of returned items are now exchanged
instead, with c.80% of customers keeping the exchanged product. We have seen
good results so far, influencing our plans to ramp up Exchanges across
categories and countries, with an expected impact of c.1% retained gross
GMV(6) annually.
Doubling down on our new marketing model
Marketing and brand will play a more significant role to support customer
growth as we move from testing and foundation-building of our new approach in
H1 to scaled execution in H2. Our marketing activity will be structured to
drive both near-term demand and longer-term brand strength. We are backing
this with increased investment, leveraging a broader channel mix and
introducing our new 'Brand Book'.
On driving short-term demand, we have developed a more reactive, trend-led
approach that responds quickly to product launches and emerging fashion
moments. On strengthening long-term brand building, we have planned a
programme of seasonal, high impact campaigns, working with new talent to
position ASOS as a more compelling fashion destination. We have already tested
both approaches through our recent Style Each Moment campaign in April, with
encouraging early results from both the seasonal campaign model and more
agile, on trend activity.
The most relevant product always at the heart of our proposition
Product execution will remain a core differentiator, with continued focus on
speed, quality and outfit-curation to drive relevance, confidence and growth.
We will further expand T&R and Speed-to-Market, scaling T&R towards
our c.30% medium-term target. Further expansion of Flexible Fulfilment and new
Partner Brands being onboarded will improve availability, broaden choice and
reduce inventory risk. Exclusivity will continue to be a key enabler of how we
differentiate our product and reinforce our ability to curate relevant,
outfit-led product moments at scale. As a result, this has led to a new
upcoming collaboration with Barbour, further drops with adidas, and new
Flexible Fulfilment partnerships with Levi's and ON across the UK and Europe,
as well as an exclusive Partner Fulfils brand, NA‑KD.
Underpinning this faster execution is a deep and sustained focus on sizing,
quality and fit, which is critical to earning trust, driving repeat behaviour
and building full price performance. We are increasing the proportion of Own
Brand styles built on ASOS-owned sizing blocks to c.65% in Womenswear and
c.90% in Menswear. This represents a material shift from previous years,
allowing us to control fit and grading more centrally rather than relying on
supplier-led variation. Greater block ownership improves fit consistency
across categories, supports clearer size communication for customers and helps
reduce fit related returns over time. Other initiatives will include
introducing AI-driven fit summaries on applicable product pages, rolling out
targeted Menswear fit guides and launching 'My Size Profile' for Womenswear
across Own Brand and Partner Brand jeans to help standardise fit. Together,
these initiatives ensure that greater speed and relevance are matched by
consistency and execution, supporting full price performance, lower returns
and stronger long-term customer engagement.
Our approach reflects a clear and disciplined plan for the next phase of our
transformation. By continuing to build on areas of strength, scaling what is
already working and leveraging our structural improvements, we are well
positioned to deliver sustained progress through H2 FY26 and into the medium
term.
Current trading and guidance
We have seen continued positive momentum since the start of H2 across several
parts of the Group. GMV growth rate is sequentially improved compared to H1
FY26, our Womenswear business has entered positive growth YoY and new
customers are up c.9% YoY for the Group in March. In April, our monthly edit
from 'The Heart' has performed very well and our most recent adidas
collaboration, drop 3, has been the most successful to date.
We reiterate our FY26 guidance, reflecting continued confidence in the
strategic and operational progress made to date. We remain on track to deliver
adjusted EBITDA in the range of £150-180m, supported by ongoing gross margin
expansion, strong cost control, and a continued focus on profitable sales. We
expect gross margin to improve by at least 100bps YoY, with GMV growth
continuing to improve through H2 as we build on the momentum seen in the first
half. Free cash flow is expected to be broadly neutral for the full year,
underpinned by improved inventory efficiency, disciplined capex spend and a
leaner operating model.
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 - used throughout this section unless otherwise indicated.
5. Adjusted cost to serve defined as operating costs (excluding
depreciation, amortisation, impairments and adjusting items) as a percentage
of adjusted revenue.
6. GMV excluding tax on a billed basis.
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:
Phil Clark, Head of Investor Relations Email: investorenquiries@asos.com (mailto:investorenquiries@asos.com)
Hannah Alderman, Investor Relations Manager
Media:
Jonathan Sibun / Will Palfreyman, Teneo Tel: 020 7353 4200
Background note
Founded in 2000, ASOS has 17m active customers in over 100 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
Headline
ASOS's financial performance in H1 FY26 reflects another step change on our
transformation journey. We refinanced the Group's £150m term loan to further
reduce our interest exposure and created more liquidity headroom through the
addition of an £87.5m delayed draw term loan (DDTL), which remains undrawn.
We strengthened our underlying business model through significant gross margin
enhancements, whilst partially mitigating the revenue deleveraging effect
through continued efficiencies in our underlying cost to serve. This continued
discipline created fuel to reinvest back into additional marketing,
facilitating the shift into the final stage of our transformation - delivering
growth - where we have seen sequential quarterly improvements in our
trajectory since exiting FY25.
Summary Financials
Revenue or GMV growth figures are expressed on a like-for-like (LFL) basis
unless otherwise indicated.(1,2)
26 weeks to 1 March 2026
£m UK EU US Rest of World Total reported Adjusting items(3) Total adjusted
Retail sales(4) 500.1 340.8 101.1 77.4 1,019.4 (0.3) 1,019.1
Income from other services(5) 55.9 30.0 7.5 3.2 96.6 (2.2) 94.4
Total revenue 556.0 370.8 108.6 80.6 1,116.0 (2.5) 1,113.5
Cost of sales (573.1) - (573.1)
Gross profit 542.9 (2.5) 540.4
Distribution expenses (115.0) - (115.0)
Administrative expenses (375.5) 11.4 (364.1)
Other income 1.0 1.7 2.7
EBITDA 53.4 10.6 64.0
Depreciation, amortisation and impairments (154.3) 72.0 (82.3)
Operating loss (100.9) 82.6 (18.3)
Finance income 1.4 - 1.4
Finance expense (38.4) 2.9 (35.5)
Loss before tax (137.9) 85.5 (52.4)
During the 26 weeks to 1 March 2026 (the period), the Group realised an
adjusted loss before tax of £52.4m, and an adjusted EBITDA of £64.0m,
representing a £21.5m improvement YoY. The uplift reflects the benefits of
the new commercial model and efficiencies across our cost base, particularly
within the supply chain network. Reported EBITDA of £53.4m also improved
significantly versus last year. The reported loss before tax of £137.9m
primarily reflects a non‑cash impairment of existing technology assets
recognised following the Group's decision to replatform its ERP system onto
Microsoft Dynamics to support the ongoing development of its technology
estate.
GMV was £1,170.1m for the period, reflecting a 9% decline YoY. The rate of
decline has improved sequentially in each quarter showing clear progress
versus the FY25 exit rate. Combined with this, our YoY customer base
trajectory has improved significantly - particularly in our core markets. New
customer acquisition is growing YoY in these markets, along with ongoing
advances in churn, and together these trends point to a customer base that is
positioned well to drive continued improvement going into H2.
Total revenue has reduced by 14% YoY, 5ppts less than GMV, as the mix
continues to shift toward flexible fulfilment models, where ASOS recognises
commission‑only revenue rather than gross sales. The resulting impact is a
structural reduction in reported top‑line revenue and improvement in gross
margin rate. In the case of our AFS model, the variable cost to serve remain
with ASOS, resulting in a structural increase in our cost to serve %. The
expansion of our flexible fulfilment offer generates a net improvement in our
EBITDA performance, increasing product availability and breadth for customers
whilst creating additional flexibility and reduced inventory risk.
Across the first half of the year, we have continued to benefit from our
improved operating model and range assortment, facilitating a healthier stock
position and supporting improved margin. We have also expanded our flexible
fulfilment models, increasing availability of high-demand product while
enabling a more efficient inventory position.
By scaling availability without carrying the associated stock-holding costs,
this model has delivered meaningful margin benefits. Together, these dynamics
have contributed to an adjusted gross margin of 48.5%, an improvement of
330bps YoY.
Adjusted cost‑to‑serve increased by 90bps in H1 FY26. The primary drivers
were revenue deleveraging, which contributed 200bps, alongside the structural
impact of our AFS model growth impacting cost-to-serve by 60bps. Underlying
cost efficiencies of 220bps across the cost base facilitated the increase in
our marketing investment of 50bps YoY. Underlying improvements reflected
reduced return rates, supported by greater customer transparency, together
with continued efficiencies across the supply chain network. The distribution
carrier contracts renegotiated in FY25 have also lowered our distribution cost
base, with benefits continuing into FY26. In addition, the closure of the US
warehouse removed a sizeable portion of operating costs and improved
assortment breadth and availability for US customers, supporting both the
proposition and margin.
Combined with wider fixed cost‑base efficiencies delivered through the
period, these actions have further strengthened our profitability, with
adjusted EBITDA margin reaching 5.7% (up 240bps YoY) after absorbing £7m of
IEEPA‑related tariffs in the half.
Adjusting items in the half were £85.5m, including £67.3m relating to the
non-cash technology asset impairment referenced above and £7.7m of fees
incurred in relation to the refinancing of the Group's term loan facilities in
November 2025. The remaining balance comprised restructuring costs associated
with implementing a leaner and more efficient cost base, together with a
number of smaller items, partly offset by a £16.3m release of dilapidations
provisions.
GMV
All the KPIs below, apart from adjusted revenue, 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.
26 weeks to 26 weeks to Change
1 March 2026 2 March 2025
GMV (£m)(6) 1,170.1 1,277.4 (9%)
Adjusted revenue (£m) 1,113.5 1,291.6 (14%)
Active customers (m)(7) 16.5 18.2 (9%)
Average basket value (£)(8) 44.43 43.32 3%
Average basket value LFL (£)(9) 44.26 43.32 2%
Average order frequency(10) 3.29 3.42 (4%)
Total shipped orders (m)(11) 26.3 29.5 (11%)
Total visits (m)(12) 943.7 994.9 (5%)
Conversion(13) 2.8% 3.0% (20bps)
GMV declined by 9%(2) YoY, reflective of our opening customer database that
was 14% lower than last year. We have focused on progressive improvements in
both the customer database and resulting GMV, and experienced a strengthening
quarterly trajectory through the half. This momentum has been supported by
improved trends in Womenswear, where a targeted focus on this priority
category has driven a c.10ppts improvement in growth versus H2 FY25. The
customer database is also showing signs of stabilisation, supported by growth
in new customer acquisition in key markets and retention improving as churn
rates continue to fall. ABV continues to improve, supported primarily by lower
returns rates. GMV performance in the first half is 5ppts better than adjusted
revenue (guided 3-4ppts for the full year) due to the scaling of the AFS model
implemented towards the end of FY25.
Within GMV, underlying return rates have improved by 160bps YoY for the
period, supported by the Group's ongoing focus on size and fit enhancements
and the launch in early 2026 of a new transparency initiative, which allows
customers to monitor their own return rate and make more informed purchasing
decisions. This was further supported by actions taken last year, which have
continued to deliver benefits into the current period.
The ongoing expansion of our flexible fulfilment models continues to
meaningfully strengthen the customer offering. These models now represent more
than 20% of third-party GMV, 14ppts ahead of the same period LY, marking a
material step up in operational scale and an increase in the number of live
territories. Their growth is contributing to improved product availability and
supports a stronger gross margin, reinforcing the strategic value of this
channel within the overall GMV mix.
Improvements in customer metrics - including stronger retention and lower
churn - reflect the benefits of a more engaging shopping experience, better
product offering and improved fulfilment capability in a competitive market.
The actions taken are already supporting a positive shift in trajectory, and
the business remains focused on delivering compelling fashion product, a more
inspiring customer experience, and a more efficient operating model through
improved availability, fulfilment and engagement. Together, this provides a
strong foundation for continued improvement in GMV performance in H2 and
beyond.
Performance by market
United Kingdom
26 weeks to
1 March 2026
GMV -5%
Total revenue -12% (-12% LFL)
Visits -3%
Orders -8%
Conversion -20bps
ABV +3% (+3% LFL)
Active customers 6.5m (-5%)
UK sales performance continues to strengthen - outperforming the Group - with
the YoY decline at 5%, ahead of the FY25 exit rate. The continued improvement
in our core market reflects targeted customer activity in H1, including
increased marketing investment, and provides an important lead indicator of
how our strengthened customer proposition can support further progress in the
UK and across international markets. The improvement in trajectory is despite
a weakening in conversion, reflecting the deliberate focus on attracting
higher volumes of new customers, which supports our customer acquisition drive
to underpin future sales growth.
The active customer base remains at 6.5m, broadly in line with the FY25 year
end. This has been supported by improved retention and engagement which
indicates that the proposition is resonating with customers and positions the
business well as it moves into H2.
Europe
26 weeks to
1 March 2026
GMV -11%
Total revenue -14% (-16% LFL)
Visits -7%
Orders -12%
Conversion -10bps
ABV +4% (+1% LFL)
Active customers 7.4m (-12%)
GMV declined by 11% YoY, reflecting lower traffic and conversion over the
period. Traffic trends began to improve towards the end of H1, supported by
increased levels of customer acquisition. This was particularly evident in our
core markets of Germany and France, both of which delivered YoY new customer
growth in Q2, providing early signs of recovery in the region.
Profitability in EU remains ahead of last year, supported by continued
benefits from actions taken in the prior year to reduce the incidence of
unprofitable orders, supplemented by distribution carrier rate benefits and
structural gross margin improvements. These measures have supported margin
performance, with profit per order increasing across all EU markets in H1,
when compared with the same period last year.
United States
26 weeks to
1 March 2026
GMV -12%
Total revenue -18% (-15% LFL)
Visits +5%
Orders -18%
Conversion -40bps
ABV +3% (+8% LFL)
Active customers 1.6m (-10%)
US GMV declined 12% YoY, reflecting the FY25 exit position on our customer
database of -21% YoY. With a modest absolute decline in the customer database
during the half, following targeted marketing activity and improved customer
acquisition, the active customer database closed H1 at -10% YoY. Traffic to
site improved, with customer demand continuing to support higher average
basket values and profitability. The market was affected by wide spread
volatility and, in particular, the introduction of IEEPA tariffs which caused
fulfilment disruption early in the half and impacted profit by £7m in HY26.
Actions have been taken to balance profitability impacts following the
increased tariff and duty costs, including pricing adjustments which retain
our competitive position to facilitate future growth.
The US remains a key strategic market for the Group and continues to be one of
our most profitable regions. This is supported by a strong profit per order,
reinforcing the long‑term attractiveness of the market despite near‑term
volatility.
Rest of World
26 weeks to
1 March 2026
GMV -15%
Total revenue -20% (-17% LFL)
Visits -11%
Orders -18%
Conversion -10bps
ABV flat (+4% LFL)
Active customers 1.0m (-20%)
Rest Of World GMV declined by 15%, remaining consistent with the run‑rate
exiting last year. Performance in this region remains softer than our key
markets, reflecting our intentional focus on prioritising the strategic
territories that deliver the greatest impact. Despite lower sales,
profitability across ROW remains strong with profit per order improving YoY,
underlining the resilient economics of these markets.
There is a defined set of initiatives underway aimed at improving the
trajectory in future periods - including targeted customer activation,
enhanced localised trading approaches, and selective investment to support
long‑term growth in these markets.
Gross margin
Adjusted gross margin increased across the period by 330bps YoY to 48.5%
reflecting the continued benefits of our improved commercial model. Key
drivers included improved stock governance and lifecycle management, alongside
enhanced buying margins, supporting a more profitable product mix and higher
product selling margins. This has also been supported by our ongoing
transition toward flexible fulfilment models (AFS and PF), which deliver clear
commercial advantages by removing the need to hold inventory, reducing
markdown exposure and increasing flexibility. The structural margin benefit
arises from the commission‑based nature of these models.
The impact of the additional IEEPA tariffs, approximately £7m in the period
among wider US-related impacts, has been actively managed through a series of
targeted mitigating actions, reducing the effect on gross margin. These
actions are focused on protecting our ability to price competitively in the US
market, ensuring we remain well positioned for long‑term, sustainable
growth.
Reported gross margin was 48.6%, up 350bps YoY; the YoY uplift being
attributable to the same drivers as adjusted gross margin.
Operating expenses
Adjusted cost to serve (excluding D&A) increased by 90bps to 43.0% in H1
FY26. This movement includes a 200bps impact from deleveraging on the lower
revenue base, in addition to an increase of 60bps from the structural increase
in cost to serve from the growth in our flexible fulfilment propositions.
Excluding these impacts, underlying adjusted cost to serve reduced by 170bps
YoY, within which marketing spend increased by 50bps as the Group shifted
focus towards investing for growth. The absolute fixed cost base reduced by
12% YoY, primarily reflecting the FY25 mothballing of the Atlanta warehouse,
which removed a sizeable portion of overhead costs, alongside further
efficiency actions across the wider operating cost base. The variable costs
within our supply chain network continued to benefit from a leaner and more
efficient operating model, as well as material cost savings through
distribution carrier contract renegotiations.
The efficiency actions across our cost base delivered material savings,
moderating inflationary pressures and creating additional fuel to reinvest in
marketing activity, helping to drive customer acquisition and an improving
sales trajectory.
£m 26 weeks to % of 26 weeks to % of Change in £ Value
1 March 2026
revenue(14)
revenue(14)
2 March 2025
Distribution costs (115.0) (10.3%) (138.8) (10.7%) 17%
Warehousing (105.0) (9.4%) (135.8) (10.5%) 23%
Marketing (82.3) (7.4%) (89.3) (6.9%) 8%
Other operating costs (176.8) (15.9%) (180.3) (14.0%) 2%
Adj. cost to serve (excl. D&A) (479.1) (43.0%) (544.2) (42.1%) 12%
Adj. depreciation and amortisation (82.3) (7.4%) (82.1) (6.4%) -
and impairments
Adj. operating costs (561.4) (50.4%) (626.3) (48.5%) 10%
Adjusting items within operating costs (83.4) (7.5%) (186.7) (14.4%) 55%
Total operating costs (644.8) (57.8%) (813.0) (62.6%) 21%
Distribution costs improved by 40bps as a percentage of revenue versus the
same period last year, reflecting the continued realisation of benefits from
the carrier contract renegotiations completed in FY25. These rate improvements
more than offset the increased fulfilment costs associated with routing US
orders through the UK, a consequence of the US site closure last year.
Warehouse cost to serve improved by 110bps YoY, with fixed cost benefits
largely driven by the closure of the US fulfilment centre and the associated
savings. Variable CTS also improved, supported by continued efficiency gains
across the remaining network - including better labour utilisation, process
optimisation and tighter operational controls - which more than offset
underlying inflationary pressures. In addition, a review of expected
restoration costs for mothballed sites resulted in a reduction to the
dilapidations provision of £3.9m.
Marketing costs as a percentage of revenue increased relative to the
equivalent period last year by 50bps, reflecting a deliberate decision to
re-invest efficiencies generated back into customer engagement. This
additional investment was targeted at accelerating new‑customer acquisition,
strengthening visibility across key digital and out-of-home channels, and
driving more first‑time shoppers to the site in support of the broader
growth agenda.
Other operating costs decreased by £3.5m versus the same period last year,
reflecting continued discipline in the management of central overheads. This
reduction was primarily driven by tighter control of indirect spend and
efficiencies across key support functions. The improvement was further
supported by a 2% reduction in staff costs across the half, reflecting actions
to structurally reset the cost base and strengthen operational efficiency. We
enter H2 with a leaner central cost base, including 16% fewer heads vs last
year.
Depreciation and amortisation costs (excluding adjusting items) were broadly
flat YoY reflecting continued capital investment and associated depreciation
and amortisation charges.
Interest
Finance expense (excluding adjusting items) was £35.5m, an increase of £2.5m
from H1 FY25, mainly reflecting the absence of capitalised interest following
the mothballing of the Atlanta warehouse. On a cash basis, interest paid
increased by £20.1m versus H1 FY25 primarily driven by the £13.9m coupon
payment on the 2028 convertible bond, which did not occur in the prior period
as the first coupon fell due in H2 FY25. The remainder reflects payment timing
under the previous term loan, which was refinanced in December 2025.
Taxation
The reported effective tax rate is 4.8% based on the reported loss before tax
of £137.9m. This is lower than the H1 FY25 effective tax rate of 17.7%
primarily due to the effect of higher unrecognised deferred tax expense in the
current period.
Earnings per share
Both basic and diluted loss per share were 109.9p (H1 FY25: basic and diluted
loss per share of 166.8p). The lower loss per share is mainly due to lower
loss after tax for the period of £131.3m (H1 FY25: £198.8m). 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 period.
Free cash flow
£m 26 weeks to 26 weeks to
1 March 2026
2 March 2025
AEBITDA 64.0 42.5
Share-based payments and other non-cash items included in AEBITDA (2.7) (1.7)
Cash impacting operating adjusting items (18.5) (12.2)
Income tax paid (0.2) -
Decrease in inventory (excl. swo)(15) 32.0 103.2
Increase in other working capital(16) (86.6) (148.8)
Operating cash flow (12.0) (17.0)
Purchase of property, plant & equipment and intangible assets (40.8) (47.4)
Payment of lease liabilities (principal) (14.5) (13.7)
Interest received 1.4 3.6
Interest paid (29.7) (9.6)
Dividends received from associates 3.0 -
Free cash flow (92.6) (84.1)
Proceeds from sale of investments - 135.0
Net repayment of borrowings (6.5) (210.7)
Cash impacting financing adjusting items(17) (9.9) (10.5)
Cash flow (109.0) (170.3)
Throughout the first 26 weeks of FY26, there was a free cash outflow(18) of
£92.6m, which was in line with expectations given the seasonal nature of our
cashflow structure. The YoY movement was primarily driven by higher financing
payments in FY26, with interest payments increasing by c.£20m YoY, due to no
equivalent convertible bond interest payments being due in H1 FY25.
Operating cash flow improved over the previous period, benefiting primarily
from higher AEBITDA, reflecting the underlying improvement in profitability,
partially offset by one‑off increases in adjusting items. Movements in
overall working capital were broadly neutral, with the annualisation of a
larger stock reduction last year being offset with the positive impact of
smaller reduction in stock creditors.
After financing activities, there was a net cash outflow of £109.0m, driven
by £6.5m of debt repayment and £9.9m of adjusting items, relating to
refinancing fees.
Net debt, refinancing and liquidity
£m As at As at
1 March 2026
2 March 2025
Convertible bond (fair value of debt component) 350.4 336.7
Term loan, including accrued interest 149.0 153.3
Nordstrom loan - 6.5
Other short-term borrowings 5.0 -
Borrowings 504.4 496.5
Cash and cash equivalents (209.5) (220.7)
Net debt (excluding lease liabilities) 294.9 275.8
Excluding lease liabilities, net debt increased to £294.9m, an increase of
£19.1m YoY. The movement mainly reflects the non‑cash interest accretion on
the convertible bond. Cash and cash equivalents were £209.5m at the end of
the period, a £11.2m reduction YoY, primarily as a result of the fees
associated with the refinancing in December 2025.
As announced in November 2025, the Group refinanced its term loan facilities
with a syndicate of private lenders. On the effective date in December 2025,
the existing £150.0m term loan was repaid and the associated Bantry Bay
revolving credit and accordion facilities were terminated, and replaced with a
£150.0m senior term loan and an £87.5m Delayed Draw Term Loan (DDTL)
facility, both maturing in November 2030. The DDTL was undrawn at the end of
H1 FY26. The refinancing provides materially improved financial terms,
including additional liquidity headroom, enhanced financial flexibility
through the extended maturity, and a c.£5m LFL reduction in annual cash
interest costs compared with the previous facility.
Aaron Izzard
Chief Financial Officer
23 April 2026
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 (8%).
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. Restated visits for H1 FY25, previously reported number 984.1m.
13. Conversion is calculated as total shipped orders divided by total visits.
14. As a percentage of adjusted revenue for all lines other than Total
operating costs which is expressed as a percentage of reported revenue.
15. H1 FY25 decrease in inventory is excluding £5.4m of stock-write-offs
associated with our Driving Change agenda as announced in the ASOS Plc Annual
Report and Accounts 2024. The impact on inventory is £nil in H1 FY26.
16. Includes working capital movements associated with adjusting items; a
breakdown is included in the APMs section at the end of the financial
statements.
17. Financing adjusting items relate to refinancing costs as announced in
November 2025.
18. Free cash flow is net cash generated from operating activities, after cash
capital expenditure, lease and interest payments, and cash flows from
associates.
Consolidated Income Statement
for the 26 weeks to 1 March 2026
26 weeks to 1 March 2026 26 weeks to 2 March 2025
Note Adjusted Adjusting items Total Adjusted Adjusting items Total
(Note 3)
(Note 3)
£m £m £m £m £m £m
Revenue 4 1,113.5 2.5 1,116.0 1,291.6 7.8 1,299.4
Cost of sales (573.1) - (573.1) (707.4) (5.4) (712.8)
Gross profit 540.4 2.5 542.9 584.2 2.4 586.6
Distribution expenses (115.0) - (115.0) (138.8) - (138.8)
Administrative expenses (446.4) (83.4) (529.8) (487.5) (186.7) (674.2)
Other income 2.7 (1.7) 1.0 2.5 13.8 16.3
Operating loss (18.3) (82.6) (100.9) (39.6) (170.5) (210.1)
Finance income 6 1.4 - 1.4 3.1 - 3.1
Finance expenses 6 (35.5) (2.9) (38.4) (33.0) (1.5) (34.5)
Loss before tax (52.4) (85.5) (137.9) (69.5) (172.0) (241.5)
Income tax (charge)/credit 7 (9.9) 16.5 6.6 13.3 29.4 42.7
Loss for the period (62.3) (69.0) (131.3) (56.2) (142.6) (198.8)
Loss per share pence per share pence per share
Basic and diluted 8 (109.9) (166.8)
All activities in the current and prior period are continuing.
The notes on page 27 to 47 form an integral part of these condensed
consolidated interim financial statements.
Consolidated Statement of Comprehensive Income
for the 26 weeks to 1 March 2026
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Loss for the period (131.3) (198.8)
Items that will not be reclassified subsequently to profit or loss
Net fair value gains on cash flow hedges 0.1 3.0
Tax on items that will not be reclassified - (1.3)
0.1 1.7
Items that may be reclassified subsequently to profit or loss
Net translation movements (0.5) 0.2
Net fair value gains on cash flow hedges 0.1 8.2
Fair value movements reclassified from cash flow hedge reserve to profit or 1.9 (8.0)
loss
Tax on items that may be reclassified (1.0) (0.1)
0.5 0.3
Other comprehensive income for the period 0.6 2.0
Total comprehensive loss for the period (130.7) (196.8)
The notes on page 27 to 47 form an integral part of these condensed
consolidated interim financial statements.
Consolidated Balance Sheet
as at 1 March 2026
1 March 2026 31 August 2025 2 March 2025
Note £m £m £m
Non-current assets
Goodwill and other intangible assets 9 387.7 473.6 492.4
Property, plant and equipment 10 142.0 153.4 168.2
Right-of-use assets 11 163.3 172.1 180.2
Investment properties 5.9 6.2 6.6
Investments in associates 12 41.9 44.9 46.3
Trade and other receivables 0.9 1.8 2.9
Derivative financial assets 0.1 0.1 0.5
Deferred tax assets 51.5 44.7 104.7
793.3 896.8 1,001.8
Current assets
Inventories 370.3 402.3 411.7
Trade and other receivables 49.7 49.2 63.7
Derivative financial assets 3.1 1.2 10.4
Cash and cash equivalents 209.5 318.9 220.7
Current tax assets 4.2 3.7 7.8
636.8 775.3 714.3
Current liabilities
Trade and other payables 14 (536.5) (619.3) (546.7)
Borrowings 15 (93.4) (96.4) (18.5)
Lease liabilities 11 (27.6) (27.5) (26.4)
Derivative financial liabilities (4.6) (9.8) (4.3)
Provisions 16 (5.0) (4.4) (4.9)
Current tax liabilities - - (4.5)
(667.1) (757.4) (605.3)
Net current (liabilities)/assets (30.3) 17.9 109.0
Non-current liabilities
Borrowings 15 (411.0) (407.2) (478.0)
Lease liabilities 11 (197.0) (197.0) (208.9)
Derivative financial liabilities (0.2) (0.3) (0.2)
Provisions 16 (69.6) (97.8) (102.9)
(677.8) (702.3) (790.0)
Net assets 85.2 212.4 320.8
Equity attributable to owners of the parent
Called up share capital 4.2 4.2 4.2
Share premium 322.6 322.6 322.6
Other reserves 6.1 3.6 14.3
Accumulated losses (247.7) (118.0) (20.3)
Total equity 85.2 212.4 320.8
The notes on page 27 to 47 form an integral part of these condensed
consolidated interim financial statements.
These unaudited condensed consolidated interim financial statements for the 26
weeks to 1 March 2026 were approved by the Board of Directors and authorised
for issue on 23 April 2026 and were signed on its behalf by:
José Antonio Ramos Calamonte
Aaron Izzard
Chief Executive Officer
Chief Financial Officer
Consolidated Statement of Changes in Equity
for the 26 weeks to 1 March 2026
Called up share capital Share premium Other reserves Accumulated losses Total equity
£m £m £m £m £m
As at 1 September 2025 4.2 322.6 3.6 (118.0) 212.4
Loss for the period - - - (131.3) (131.3)
Other comprehensive income for the period - - 0.6 - 0.6
Total comprehensive income/(loss) for the period - - 0.6 (131.3) (130.7)
Cash flow hedges gains and losses transferred - - 1.9 - 1.9
to non-financial assets
Share-based payments charge - - - 1.8 1.8
Tax relating to share incentive schemes - - - (0.2) (0.2)
Balance as at 1 March 2026 4.2 322.6 6.1 (247.7) 85.2
As at 2 September 2024 4.2 322.6 61.9 132.6 521.3
Loss for the period - - - (198.8) (198.8)
Other comprehensive income for the period - - 2.0 - 2.0
Total comprehensive income/(loss) for the period - - 2.0 (198.8) (196.8)
Cash flow hedges gains and losses transferred - - 0.6 - 0.6
to non-financial assets
Share-based payments charge - - - 2.6 2.6
Repurchase and refinance of convertible bond - - (50.2) 43.3 (6.9)
Balance as at 2 March 2025 4.2 322.6 14.3 (20.3) 320.8
Accumulated losses includes the share-based payments reserve and the employee
benefit trust reserve.
Consolidated Cash Flow Statement
for the 26 weeks to 1 March 2026
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Cash flows from operating activities
Operating loss (100.9) (210.1)
Adjusted for:
Depreciation of property, plant and equipment, right-of-use assets and 24.7 26.2
investment properties
Amortisation of other intangible assets 57.0 57.8
Impairment charges on non-financial assets 72.7 142.5
Share-based payments charge (net of amounts capitalised) 1.6 2.1
Share of associate's net profit - (1.3)
Gain on disposal of brands - (13.8)
Loss/(gain) on refinancing 7.7 (2.6)
Other non-cash items (2.6) (2.5)
Decrease in inventories 32.0 108.6
Decrease/(increase) in trade and other receivables (0.5) (10.8)
Decrease in trade and other payables (82.6) (127.0)
(Decrease)/increase in provisions (20.9) 13.9
Cash used in operating activities (11.8) (17.0)
Net income tax paid (0.2) -
Net cash used in operating activities (12.0) (17.0)
Cash flows from investing activities
Purchase of other intangible assets (38.5) (42.0)
Proceeds from sale of brands - 135.0
Purchase of property, plant and equipment (2.3) (5.4)
Dividends received from associates 3.0 -
Interest received 1.4 3.6
Net cash (used in)/generated from investing activities (36.4) 91.2
Cash flows from financing activities
Drawdown of borrowings 150.0 -
Repayment of borrowings (156.5) (63.3)
Repurchase of convertible bond - (147.4)
Refinancing fees paid (9.9) (10.5)
Repayment of principal portion of lease liabilities (14.5) (13.7)
Interest paid (29.7) (9.6)
Net cash used in financing activities (60.6) (244.5)
Net decrease in cash and cash equivalents (109.0) (170.3)
Opening cash and cash equivalents 318.9 391.0
Effect of exchange rates on cash and cash equivalents (0.4) -
Closing cash and cash equivalents 209.5 220.7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the 26 weeks to 1 March 2026
1 General information
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 period represents the 26 weeks to 1 March 2026 (comparative
financial period: 26 weeks to 2 March 2025, and prior financial year: 52 weeks
to 31 August 2025). The financial information comprises the results of the
Company and its subsidiaries.
2 Material accounting policies, judgements and estimates
2.1 Basis of preparation
The condensed interim financial statements for the 26 weeks to 1 March 2026
have been prepared in accordance with UK-adopted IAS 34 Interim Financial
Reporting and with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority. The condensed interim financial
statements should be read in conjunction with the Group's Annual Report and
Accounts for the 52 weeks to 31 August 2025, which was prepared in accordance
with UK-adopted International Financial Reporting Standards (IFRS) and with
the requirements of the Companies Act 2006 and applicable Listing rules.
The condensed interim financial statements are unaudited but have been
reviewed by the auditors. The financial information presented herein does not
constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006. The Group's Annual Report and Accounts for the 52 weeks to
31 August 2025 have been filed with the Registrar of Companies. The auditors'
report on those accounts was unqualified, did not draw attention to any
matters by way of emphasis and did not contain a statement under section
498(2) or (3) of the Companies Act 2006.
The condensed interim financial statements have been prepared on the
historical cost basis of accounting, excluding derivative financial
instruments which are held at fair value. The condensed interim 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 August 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 1 March 2026, the Group had £73.6m of convertible bonds maturing in April
2026, £253.0m of convertible bonds maturing in September 2028, a £150.0m
fully drawn term loan and an associated £87.5m undrawn and available delayed
draw term loan (DDTL) with a syndicate of private lenders which matures in
November 2030.
The group is subject to a minimum cash and 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 sequential improvement in the YoY sales
trajectory throughout the remainder of the assessment from the FY26 H1 exit
rate, through the adoption of the new commercial model and continued
improvements to the Group's customer proposition. The resulting growth rates
highlight modest positive YoY growth in the first half of the assessment
building towards mid-single-digit YoY growth by the end of the 18-month
window. 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 H2 FY26 and 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 H2 FY26 H1 FY27 H2 FY27
Sales (10%) (15%) (23%)
Gross Margin (110bps) (70bps) (80bps)
Working Capital impact (average) £(62m) £(87m) £(85m)
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, 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 25% decline in sales over the base case or an
aggregate decline in gross margin rate from the base case of over 400bps
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 and
in the first half of FY26 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 Changes in accounting policies
The condensed interim financial statements have been prepared in accordance
with the accounting policies set out in the Group's Annual Report and Accounts
for the 52 weeks to 31 August 2025. The Group has considered the following
amendments to published standards that are effective for the financial period
beginning 1 September 2025 and concluded that they are either not relevant to
the Group or do not have a material impact on the Group's financial
statements:
· Amendments to IAS 21 - Lack of Exchangeability.
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 adjusting items 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 period's results and comparative periods.
2.5 Critical accounting judgements and key sources of estimation
uncertainty
The preparation of the condensed interim 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.
The critical accounting judgements and key sources of estimation uncertainty
remain consistent with those presented in Note 2.7 of the Group's Annual
Report and Accounts for the 52 weeks to 31 August 2025.
3 Adjusting items
Income statement
Revenue Cost of sales Administrative expenses Other income Finance expenses Total before tax Tax Total
26 weeks to 1 March 2026 £m £m £m £m £m £m £m £m
Commercial operating model change 2.5 - (0.7) - - 1.8 (0.4) 1.4
Property-related costs - - 9.7 - (2.9) 6.8 (1.3) 5.5
Other strategic initiatives - - (90.1) - - (90.1) 22.4 (67.7)
Amortisation of acquisition intangibles - - (2.3) (1.7) - (4.0) 0.6 (3.4)
Unrecognised deferred tax assets - - - - - - (4.8) (4.8)
2.5 - (83.4) (1.7) (2.9) (85.5) 16.5 (69.0)
Revenue Cost of sales Administrative expenses Other income Finance expenses Total Tax Total
before tax
26 weeks to 2 March 2025 £m £m £m £m £m £m £m £m
Commercial operating model change 7.8 (5.4) (0.7) - - 1.7 (0.4) 1.3
Property-related costs - - (178.1) - (1.5) (179.6) 39.6 (140.0)
Other strategic initiatives - - (5.8) 13.8 - 8.0 (2.0) 6.0
Amortisation of acquisition intangibles - - (2.1) - - (2.1) 0.5 (1.6)
Unrecognised deferred tax assets - - - - - - (8.3) (8.3)
7.8 (5.4) (186.7) 13.8 (1.5) (172.0) 29.4 (142.6)
Cash flow statement
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Commercial operating model change 1.6 6.2
Property-related costs (7.8) (8.7)
Other strategic initiatives (12.3) (9.7)
Total adjusting items within operating cash flows (18.5) (12.2)
Of the net cash outflow in the current year, £2.8m relates to net expenditure
incurred in the prior year.
Commercial operating model
In 2023, the Group implemented a new commercial operating model, with the
transition resulting in cumulative inventory write‑downs of £228.0m across
2023 and 2024 as legacy stock was cleared. The Group is now fully operating
under the new model, with current‑year movements reflecting the final
clearance of this legacy inventory.
Property-related costs
In the prior period, the Group announced its intention to vacate the Atlanta
fulfilment centre following the completion of the site's automation project.
During the period, the Group completed the process to vacate and mothball the
facility. Additional costs of £3.4m have been incurred during the period
relating to the mothballing process (26 weeks to 2 March 2025: £177.3m).
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Atlanta fulfilment centre
Impairment of property, plant and equipment - (108.8)
Impairment of intangible assets - (6.6)
Impairment of right-of-use assets - (26.4)
Non-capitalised asset spend - (17.1)
Onerous occupancy costs - (15.3)
Other costs to vacate (a) (3.4) (3.1)
(3.4) (177.3)
Other property-related costs
Impairment of right-of-use assets (b) (2.5) -
Change in dilapidation cost estimates (c) 16.3 -
Other costs (d) (3.6) (2.3)
Total property-related costs 6.8 (179.6)
a) Includes costs associated with vacating sites during the period, such as
severance, supplier termination and stock transfers.
b) An impairment charge was recognised on right-of-use assets related to
office spaces vacated during the period.
c) Change in dilapidation cost estimates for vacant leased sites, resulting
in a reduction of £20.2m to the dilapidations provision. This decrease
reflects a comprehensive review of expected remediation costs for mothballed
sites in Atlanta and Lichfield, incorporating current market rates and more
detailed assessments of required works. As the related right-of-use assets for
these sites were fully impaired in prior periods, the reduction in the
provision is recognised in profit or loss within administrative expenses, of
which £16.3m is presented as an adjusting item and £3.9m within adjusted
results, in line with the historical classification of the related costs.
d) Ongoing expenditure incurred on vacant leased sites, including lease
interest, onerous occupancy provision unwind and business rates.
Other strategic initiatives
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Restructuring (a) (10.0) (7.7)
Refinancing (b) (7.7) 2.6
Impairment of legacy technology assets (c) (67.3) -
Disposal of brands - 13.8
Other (d) (5.1) (0.7)
(90.1) 8.0
a) Restructuring costs of £10.0m were recognised during the period,
reflecting the Group's programme to simplify the organisation and improve
operational efficiency. These costs relate to the realignment of key functions
to support the delivery of the Group's strategy.
b) During the period, the Group launched a refinancing exercise of its debt
facilities with Bantry Bay Capital. The associated debt extinguishment and
transaction fees incurred resulted in a net loss of £7.7m to administrative
expenses. Refer to Note 15 for further information.
c) An impairment charge was recognised in relation to legacy technology
assets following the Group's decision to transition its ERP platform to
Microsoft Dynamics 365. This reflects the write‑down of capitalised software
development that will no longer be utilised under the future technology
roadmap. The impairment is non‑cash and relates solely to historical
investment in systems that are being replaced as part of the Group's broader
modernisation of its technology platforms.
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 £1.7m 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 £27.4m were not recognised in the period and were
instead recognised in the income statement. Of the amounts not recognised,
£4.8m was attributed to adjusting items. Further information is included in
Note 7.
Critical accounting judgements - Identification of adjusting items
In order to provide shareholders with additional insight into the
period-on-period 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 Revenue
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Retail sales 1,019.4 1,227.8
Premier subscription revenue 7.4 9.0
Commission, marketing and other services(1) 57.7 24.1
Delivery receipts 27.7 28.9
Wholesale revenue 3.8 9.6
Total revenue 1,116.0 1,299.4
1 Commission, marketing and other services includes jobber income.
5 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:
26 weeks to 1 March 2026
UK EU US Rest of World Total
£m £m £m £m £m
Retail sales 500.1 340.8 101.1 77.4 1,019.4
Revenue from other services 55.9 30.0 7.5 3.2 96.6
Total revenue 556.0 370.8 108.6 80.6 1,116.0
Cost of sales (573.1)
Gross profit 542.9
Distribution expenses (115.0)
Administrative expenses (529.8)
Other income 1.0
Operating loss (100.9)
Finance income 1.4
Finance expenses (38.4)
Loss before tax (137.9)
Non-current assets(1) 591.9 148.9 0.9 - 741.7
26 weeks to 2 March 2025
UK EU US Rest of World Total
£m £m £m £m £m
Retail sales 598.5 414.4 120.1 94.8 1,227.8
Revenue from other services 36.7 15.4 13.0 6.5 71.6
Total revenue 635.2 429.8 133.1 101.3 1,299.4
Cost of sales (712.8)
Gross profit 586.6
Distribution expenses (138.8)
Administrative expenses (674.2)
Other income 16.3
Operating loss (210.1)
Finance income 3.1
Finance expenses (34.5)
Loss before tax (241.5)
Non-current assets (at 2 March 2025)(1) 722.4 166.4 7.8 - 896.6
Non-current assets (at 31 August 2025)(1) 693.0 154.9 4.1 - 852.0
1 Excludes derivative financial assets and deferred tax assets.
6 Finance income and expenses
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Finance income
Interest on deposits 1.4 3.1
Finance expenses
Interest on borrowings (33.0) (32.7)
Interest on leases (3.3) (3.0)
Provisions - unwind of discount (2.1) (1.8)
Interest capitalised - 3.0
Total finance expenses (38.4) (34.5)
Net finance expense (37.0) (31.4)
7 Taxation
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Current period UK tax 0.1 -
Current period overseas tax 0.8 0.6
Adjustment in respect of prior period corporation tax 0.1 (0.2)
Total current tax charge 1.0 0.4
Origination and reversal of temporary differences (34.5) (54.7)
Unrecognised deferred tax assets 27.4 12.1
Adjustment in respect of prior periods (0.5) (0.5)
Total deferred tax credit (7.6) (43.1)
Total income tax credit in income statement (6.6) (42.7)
Analysed as:
Tax on adjusted loss/(credit) 9.9 (13.3)
Tax on adjusting items (16.5) (29.4)
Total income tax credit in income statement (6.6) (42.7)
Effective tax rate 4.8% 17.7%
Income tax is recognised using management's estimate of the weighted average
effective annual income tax rates for corporate and deferred taxes expected
for the full financial year, including stock provision adjustments but
excluding all other adjusting items (refer to Note 3 for adjusting items),
prior period adjustments, share-based payments and derivatives, which are
recognised on an actuals basis. The estimated average annual tax rate used for
the 26 weeks to 1 March 2026 is 23.2% (26 weeks to 2 March 2025: 22.9%).
The reported effective tax rate is 4.8% based on the reported loss before tax
of £137.9m.
Pillar two disclosures
FY26 is the second year that ASOS falls within the Pillar Two income taxes
legislation. Under this legislation, the parent company is required to pay, in
the UK, top-up tax on profits of its subsidiaries and any UK profits that are
taxed at an effective tax rate below 15%. This legislation is not anticipated
to have a material impact on the financial position of the Group, as the
jurisdictions in which the Group operate, including the UK, apply tax rates
above 15%.
For the 26 weeks to 1 March 2026, the transitional safe harbour provisions
apply, and no top-up taxes have arisen. The Group continues to assess the
impact of the Pillar Two income taxes legislation on its future financial
performance, and has not recognised any deferred tax assets or liabilities
related to Pillar Two income taxes, in accordance with the temporary exception
issued by the IASB in May 2023.
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 of non-financial assets (refer Note 13), 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 1 March 2026, the Group has net
deferred tax assets of £205.9m (31 August 2025: £171.6m), of which £51.5m
(31 August 2025: £44.7m) have been recognised. Deferred tax assets relating
to temporary differences and unused tax losses of £617.4m (£154.4m tax
effected) (31 August 2025: £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 net deferred tax
assets recognised by £2.6m/£(2.6m), and is considered a reasonable possible
change.
The deferred tax assets not recognised relate to losses on a mix of adjusted
and non-adjusted items. Therefore the £27.4m 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
£4.8m recognised outside adjusted profit, and £22.6m within adjusted profit.
8 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 period. 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 period,
potential ordinary shares were anti-dilutive and have therefore been excluded
from the calculation of diluted loss per share. Accordingly, basic and diluted
loss per share are the same for the current period.
26 weeks to 26 weeks to
1 March 2026
2 March 2025
Weighted average number of shares in issue - basic and diluted 119,469,716 119,218,710
Loss for the period (£m) (131.3) (198.8)
Basic and diluted loss per share (pence per share) (109.9) (166.8)
9 Goodwill and other intangible assets
26 weeks to 52 weeks to 26 weeks to
1 March 2026
31 August 2025
2 March 2025
£m £m £m
Net book value
At the beginning of the period 473.6 514.0 514.0
Additions 41.3 83.0 43.5
Amortisation expense (57.0) (115.5) (57.8)
Impairment charges (70.2) (7.9) (7.3)
At the end of the period 387.7 473.6 492.4
Refer to Note 3 for details of impairment charges.
The net book value comprises:
1 March 2026 31 August 2025 2 March 2025
£m £m £m
Net book value
Goodwill 35.2 35.2 35.2
Brands and domain names 24.5 25.2 26.0
Customer relationships 9.1 10.6 12.1
Software 307.6 396.5 411.5
Assets under construction 11.3 6.1 7.6
At the end of the period 387.7 473.6 492.4
Goodwill is monitored on an entity wide basis at the reporting segment level
as a singular CGU, the ASOS Group CGU.
Goodwill is not amortised but is reviewed for impairment at least annually (or
more frequently where there is an indication that the asset may be impaired)
by assessing the recoverable amount of each cash-generating unit (CGU), or
group of cash generating units, to which the goodwill relates. Refer to Note
13 for further information on impairment testing for the period.
Capital expenditure committed at 1 March 2026 but not yet incurred amounted to
£71.6m (31 August 2025: £46.1m; 2 March 2025: £60.0m).
10 Property, plant and equipment
26 weeks to 52 weeks to 26 weeks to
1 March 2026
31 August 2025
2 March 2025
£m £m £m
Net book value
At the beginning of the period 153.4 283.2 283.2
Additions 1.6 6.5 7.7
Disposals - (0.1) -
Depreciation expense (13.0) (26.7) (13.9)
Impairment charges - (109.5) (108.8)
At the end of the period 142.0 153.4 168.2
The net book value comprises:
1 March 2026 31 August 2025 2 March 2025
£m £m £m
Net book value
Fixtures, fittings, plant and machinery 135.9 151.4 160.5
Computer equipment 5.5 1.5 4.3
Assets under construction 0.6 0.5 3.4
At the end of the period 142.0 153.4 168.2
11 Leases
The Group holds leases for its fulfilment centres and office spaces. 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.
Right-of-use assets
26 weeks to 52 weeks to 26 weeks to
1 March 2026
31 August 2025
2 March 2025
£m £m £m
At the beginning of the period 172.1 254.0 254.0
Remeasurements / modifications 13.9 (42.2) (41.9)
Depreciation expense (11.3) (24.0) (12.0)
Impairment charge (2.5) (20.7) (26.4)
Change in dilapidations estimate (8.9) 1.5 3.0
Foreign exchange differences - 3.5 3.5
At the end of the period 163.3 172.1 180.2
Right-of-use assets comprise entirely of leases for land and buildings.
Lease Liabilities
26 weeks to 52 weeks to 26 weeks to
31 August 2025
1 March 2026 2 March 2025
£m £m £m
At the beginning of the period 224.5 289.6 289.6
Remeasurements / modifications 13.9 (42.2) (41.9)
Payments (17.8) (32.1) (16.7)
Interest expense 3.3 6.4 3.0
Foreign exchange differences 0.7 2.8 1.3
At the end of the period 224.6 224.5 235.3
Current 27.6 27.5 26.4
Non-current 197.0 197.0 208.9
Total lease liabilities 224.6 224.5 235.3
Remeasurements / modifications to the lease liability balance are primarily
driven by market rent reviews during the period for several of the Group's
leased sites.
12 Investments in associates
The Group holds a 25% equity interest in 24.8.2024 Limited (IPCO), a
UK-incorporated company and subsidiary of Heartland A/S - a related party of
the Group. The Group also holds one representative director position on the
IPCO board.
IPCO holds the Topshop/Topman (TSTM) brand assets and has granted a licence to
ASOS.com for 10 years (extendable up to 25 years at the Group's discretion),
pursuant to which ASOS.com has the exclusive right 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
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 movement in the carrying amount of investments in
associates:
26 weeks to 52 to weeks to 26 weeks to
1 March 2026
31 August 2025
2 March 2025
£m £m £m
At the beginning of the period 44.9 - -
Additional investment - 45.0 45.0
Share of net profit/(loss) for the period, net of tax - (0.1) 1.3
Distributions received (3.0) - -
At the end of the period 41.9 44.9 46.3
13 Impairment of non-financial assets
Inputs and assumptions
Cash-generating units
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:
1 March 2026 31 August 2025 2 March 2025
£m £m £m
Goodwill and other intangible assets 387.7 473.6 492.4
Property, plant and equipment 142.0 153.4 168.2
Right-of-use assets 163.3 172.1 180.2
693.0 799.1 840.8
Identification of impairment indicator
Given the reported loss recognised during the period, 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
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 (31 August 2025: 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:
1 March 2026 31
Au
gu
st
20
25
Post-tax rate Pre-tax rate Post-tax rate Pre-tax rate
12.9% 16.4% 12.5% 15.9%.
Outputs
No impairments were identified as a result of the impairment review described
above, with headroom noted of c.£369m (52 weeks to 31 August 2025: c.£103m).
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 in line with those used for the going
concern 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, no impairment was noted.
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 1 March 2026 31 August 2025
A reduction in forecast annual growth rates of:(1) (2.5)% (0.7%)
A reduction in forecast revenue vs base case of:(2) (9.9)% (2.7%)
A reduction in forecast gross margin in each year of: (2.1)% (0.6%)
1 Applied to the Group five-year plan period
2 Applied to all years within the assessment period
14 Trade and other payables
1 March 2026 31 August 2025 2 March 2025
£m £m £m
Trade payables 108.9 122.7 94.9
Other payables 128.0 175.0 149.6
Accruals 174.7 177.6 170.7
Refund liabilities 56.1 77.9 64.1
Deferred revenue 42.3 31.6 47.1
Taxation and social security 26.5 34.5 20.3
Total trade and other payables 536.5 619.3 546.7
Trade payables comprise amounts owed in relation to inventory purchases. Other
payables comprise amounts owed in relation to all other purchases.
15 Borrowings
1 March 2026 31 August 2025 2 March 2025
£m £m £m
Convertible bonds 350.4 343.3 336.7
Nordstrom loan - 6.5 6.5
Term loan 149.0 153.8 153.3
Other short-term borrowings 5.0 - -
Total borrowings 504.4 503.6 496.5
Current 93.4 96.4 18.5
Non-current 411.0 407.2 478.0
Total borrowings 504.4 503.6 496.5
Convertible bonds
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.
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 repurchased at a
discount to par of 15%; and
· As a result, £73.6m remained in the Convertible Bonds due 2026.
The Convertible Bonds due 2028 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.
The Convertible Bonds due 2026 were redeemed in April 2026, after the balance
sheet date.
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 prior years.
The remaining loan balance of £6.5m was repaid during the period.
Term loan
In November 2025, the Group entered into agreements to refinance its term loan
facilities. On the effective date in December 2025, the Group's existing
£150.0m term loan was repaid and the associated revolving credit and
accordion facilities with Bantry Bay were terminated, replaced by a £150.0m
senior term loan and an £87.5m Delayed Draw Term Loan (DDTL) facility, both
maturing in November 2030. Both the senior term loan and DDTL facility (when
drawn) bear interest at a margin above SONIA. The DDTL 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.
Impact of refinancing the term loan on the Group accounts
The impact of the refinancing activities during the period on the Group's
financial statements are shown below:
Balance sheet Cash flow Income statement
Borrowings (Term loan) Other capitalised transaction costs Inflow / (outflow) Refinancing loss
£m £m £m £m
As at 31 August 2025 (153.8) 2.1 - -
Drawdown of principal (150.0) - 150.0 -
Repayment of principal 150.0 - (150.0) -
Loss on debt extinguishment (1.8) (1.8) - 3.6
Transaction costs 4.5 1.3 (9.9) 4.1
Total refinancing impact 2.7 (0.5) (9.9) 7.7
Interest expense (10.0) (0.4)
Interest paid 12.1 -
As at 1 March 2026 (149.0) 1.2
Other short-term borrowings
During the period the Group entered into a supplier finance arrangement under
which the finance provider settles supplier invoices directly and the Group
subsequently repays the finance provider in accordance with the arrangement
terms.
16 Provisions
Dilapidations Onerous occupancy Total
£m £m £m
As at 1 September 2025 72.7 29.5 102.2
Recognised/(released)(1) (28.8) 1.0 (27.8)
Utilised - (2.2) (2.2)
Unwinding of discount 1.4 0.7 2.1
Foreign exchange differences 0.3 - 0.3
As at 1 March 2026 45.6 29.0 74.6
Current - 5.0 5.0
Non-current 45.6 24.0 69.6
As at 1 March 2026 45.6 29.0 74.6
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 2 September 2024 68.7 20.5 89.2
Recognised 2.7 15.3 18.0
Utilised - (1.6) (1.6)
Unwinding of discount 1.3 0.5 1.8
Foreign exchange differences 0.3 0.1 0.4
As at 2 March 2025 73.0 34.8 107.8
Current - 4.9 4.9
Non-current 73.0 29.9 102.9
As at 2 March 2025 73.0 34.8 107.8
1 Included are provision reductions of £29.1m arising from updated estimates
of dilapidation obligations across the Group's property portfolio. This
decrease reflects a comprehensive review of expected remediation costs for
several warehouses including now vacant sites, incorporating current market
rates and more detailed assessments of required works. Of the reduction,
£20.2m is attributable to vacant leased sites where the related
right‑of‑use assets were fully impaired in prior periods and is therefore
recognised in profit or loss within administrative expenses. Refer to Note 3
for further details.
Dilapidation provisions
Dilapidations are recognised where there is a present obligation to repair and
restore leased properties to their preoccupancy state at the end of the lease
term.
Onerous occupancy provisions
Where the Group no longer operates from a leased property, onerous property
contract provisions are recognised for the least net cost of exiting from the
contract.
17 Financial instruments
Financial instruments by category
The carrying amounts of the Group's financial assets and financial liabilities
as at the balance sheet date are as follows:
Amortised Fair value through Total
cost
profit or loss
As at 1 March 2026 £m £m £m
Derivative financial assets - 3.2 3.2
Cash and cash equivalents 209.5 - 209.5
Trade and other receivables(1) 38.4 - 38.4
Derivative financial liabilities - (4.8) (4.8)
Lease liabilities (224.6) - (224.6)
Trade and other payables(2) (461.6) - (461.6)
Borrowings (504.4) - (504.4)
(942.7) (1.6) (944.3)
As at 31 August 2025
Derivative financial assets - 1.3 1.3
Cash and cash equivalents 318.9 - 318.9
Trade and other receivables(1) 42.3 - 42.3
Derivative financial liabilities - (10.1) (10.1)
Lease liabilities (224.5) - (224.5)
Trade and other payables(2) (542.1) - (542.1)
Borrowings (503.6) - (503.6)
(909.0) (8.8) (917.8)
As at 2 March 2025
Derivative financial assets - 10.9 10.9
Cash and cash equivalents 220.7 - 220.7
Trade and other receivables(1) 41.6 - 41.6
Derivative financial liabilities - (4.5) (4.5)
Lease liabilities (235.3) - (235.3)
Trade and other payables(2) (465.7) - (465.7)
Borrowings (496.5) - (496.5)
(935.2) 6.4 (928.8)
1 Trade and other receivables excludes prepayments and VAT receivables.
2 Trade and other payables excludes deferred revenue and any amounts in
relation to taxation.
Derivative financial instruments are currently held at fair value on the
balance sheet - all are within Level 2 of the fair value hierarchy.
Carrying amount versus fair value
Set out below is a comparison of the carrying amount and the fair value of
financial instruments that are carried in the financial statements at a value
other than fair value. The fair value of financial assets and liabilities are
based on prices available from the market on which the instruments are traded.
Where market values are not available, the fair values of financial assets and
liabilities have been calculated by discounting expected future cash flows at
prevailing interest rates. The fair values of cash and cash equivalents, trade
and other receivables, and trade and other payables are considered to
approximate to their book values.
Fair value Carrying amount Fair value
hierarchy
As at 1 March 2026 £m £m
Convertible bond 1 (350.4) (349.8)
Term loan 2 (149.0) (148.6)
Other short-term borrowings 2 (5.0) (5.0)
(504.4) (503.4)
As at 31 August 2025
Convertible bond 1 (343.3) (338.3)
Nordstrom loan 2 (6.5) (3.0)
Term loan 2 (153.8) (151.8)
(503.6) (493.1)
As at 2 March 2025
Convertible bond 1 (336.7) (313.8)
Nordstrom loan 2 (6.5) (2.8)
Term loan 2 (153.3) (152.0)
(496.5) (468.6)
Fair value hierarchy is defined as:
§ Level 1 fair value measurements are derived from quoted market prices
(unadjusted) in active markets for identical assets or liabilities at the
balance sheet date. This level includes listed equity securities and debt
instruments on public exchanges;
§ Level 2 fair value measurements are derived from inputs other than quoted
prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices). The
fair value of financial instruments is determined by discounting expected cash
flows at prevailing interest rates; and
§ Level 3 fair value measurements are derived from valuation techniques
that include inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
18 Analysis of net debt
Group net debt comprises cash and cash equivalents less any borrowings drawn
down at period-end (including accrued interest), but excluding outstanding
lease liabilities.
As at As at As at
1 March 2026
31 August 2025
2 March 2025
£m £m £m
Borrowings (504.4) (503.6) (496.5)
Lease liabilities (224.6) (224.5) (235.3)
Liabilities from financing activities (729.0) (728.1) (731.8)
Cash and cash equivalents 209.5 318.9 220.7
Net debt (519.5) (409.2) (511.1)
Net debt APM (ex-lease liabilities) (294.9) (184.7) (275.8)
Cash and cash equivalents includes uncleared payment provider receipts of
£39.3m, which are typically received within three business days (31 August
2025: £48.8m; 2 March 2025 £39.4m).
Included within cash and cash equivalents is £8.8m (31 August 2025: £11.6m;
2 March 2025 £9.7m) 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.
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 1 September 2025 (224.5) (503.6) (728.1)
Cash flows from financing activities
Drawdown of principal - (150.0) (150.0)
Repayments of principal 14.5 156.5 171.0
Interest paid 3.3 26.4 29.7
Transaction costs - 4.5 4.5
Non-cash movements
Movement in lease liabilities (13.9) - (13.9)
Supplier financing - (4.9) (4.9)
Foreign exchange impacts (0.7) - (0.7)
Loss on debt extinguishment - (1.8) (1.8)
Accrued interest (3.3) (31.5) (34. 8)
As at 1 March 2026 (224.6) (504.4) (729.0)
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
Refinancing 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 2 September 2024 (289.6) (688.1) (977.7)
Cash flows from financing activities
Repayments of principal 13.7 63.3 77.0
Interest paid 3.0 6.6 9.6
Repurchase of convertible bond - 140.6 140.6
Refinancing fees paid - 4.9 4.9
Non-cash movements
Movement in lease liabilities 41.9 - 41.9
Foreign exchange impacts (1.3) - (1.3)
Debt modification gain - 8.1 8.1
Accrued interest (3.0) (31.9) (34.9)
As at 2 March 2025 (235.3) (496.5) (731.8)
19 Related party transactions
Transactions with other related parties
During the period, the Group made purchases primarily of inventory, net of
VAT, totalling £32.6m (31 August 2025: £59.2m; 2 March 2025: £27.1m) from
Aktieselskabet af 5.5.2010, a company which has a significant shareholding in
the Group. At 1 March 2026, the amount due to Aktieselskabet af 5.5.2010 was
£10.9m (31 August 2025: £12.8m; 2 March 2025: £8.3m).
During the period, the Group incurred fees, net of VAT, totalling £9.1m (31
August 2025: £16.1m; 2 March 2025: £7.2m) payable to 24.8.2024 Limited, an
associate of the Group and a subsidiary of Heartland A/S. At 1 March 2026, the
amount due to 24.8.2024 Limited was £5.4m (31 August 2025: £5.4m; 2 March
2025: £4.1m).
During the period, the Group did not make any purchases of inventory (31
August 2025: £1.0m; 2 March 2025: £0.4m) from entities under the control of
Frasers Group plc, a company which has a significant shareholding in the
Group. At 1 March 2026, the amount due to the Frasers Group was £nil (31
August 2025: £0.1m; 2 March 2025: £0.1m).
20 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.
21 Post Balance Sheet Events
On 16 April 2026, after the reporting date, the Group redeemed the Convertible
Bonds due 2026 in full, settling the obligation with a cash payment of
£73.6m.
The Group has also entered into discussions with interested parties in
relation to a potential disposal of the Lichfield distribution centre. Any
potential transaction remains subject to negotiation, due diligence and
contract. Accordingly, no adjustments to the financial statements have been
recognised at the balance sheet date.
Principal risks and uncertainties
The Board have reviewed the Group's risk environment including in relation to
ongoing geopolitical events, global macroeconomics and conflicts. In their
current view the principal risks and uncertainties which could impact the
Group over the remaining 26 weeks of the period ended 30 August 2026 remain
materially unchanged from those set out in the Group's Annual Report and
Accounts for the 52 weeks to 31 August 2025.
Those Group principal risks are listed below and set out in more detail on
pages 56 to 60 of the Group's Annual Report and Accounts for the 52 weeks to
31 August 2025, a copy of which is available on the Group's website,
www.asosplc.com (https://www.asosplc.com) .
· Loss of personal data
· Disruptions of direct and core operations
· Not protecting stakeholder safety and wellbeing
· Failure to compete effectively at speed and loss of relevance and
brand value
· Ineffective capital allocation and not delivering ROI on
investments
· Breaching key corporate laws and regulations
· Non-compliance with global tax requirements
· Challenges and impacts of climate change
· Not having the right employee behaviours and capability for success
Statement of Directors' responsibilities
The Directors confirm that this set of Condensed Consolidated Interim
Financial Statements has been prepared in accordance with UK adopted IAS 34
Interim Financial Reporting and the Disclosure and Transparency Rules of the
UK's Financial Conduct Authority, and that the Interim Management Report
herein includes a true and fair review of the information required by DTR
4.2.7R and DTR 4.2.8R, namely:
· that the report contains a fair review of important events that
have occurred during the first 26 weeks of the financial year, and their
impact on the condensed set of financial statements, and of the principal
risks and uncertainties for the remaining 26 weeks of the financial year; and
· material related-party transactions in the first 26 weeks and any
material changes in the related-party transactions described in the last
annual report.
The Directors of ASOS plc are listed on the Group's website:
https://www.asosplc.com/this-is-asos/our-leadership/board-directors/
(https://www.asosplc.com/this-is-asos/our-leadership/board-directors/)
By order of the Board
José Antonio Ramos Calamonte
Chief Executive Officer
Independent Review Report to ASOS Plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed ASOS plc's condensed consolidated interim financial
statements (the "interim financial statements") in the Interim results of ASOS
plc for the 26 week period ended 1 March 2026 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Consolidated Balance Sheet as at 1 March 2026;
· the Consolidated Income Statement and Consolidated Statement of
Comprehensive Income for the period then ended;
· the Consolidated Cash Flow Statement for the period then ended;
· the Consolidated Statement of Changes in Equity for the period then
ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim results of ASOS plc
have been prepared in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Interim results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Interim results, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Interim results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Interim results, including the
interim financial statements, the directors are responsible for assessing the
group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Interim results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report.
Use of this report
This report, including the conclusion, has been prepared for and only for the
company for the purpose of complying with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority and for no other purpose. We do not, in giving this conclusion,
accept or assume responsibility for any other purpose or to any other person
to whom this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
23 April 2026
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 period-on-period reported results.
the impact of foreign exchange translation.
26 weeks to 26 weeks to Growth
1 March 2026
2 March 2025
£m £m %
Revenue 1,116.0 1,299.4 (14%)
Adjusting items (Note 3) (2.5) (7.8)
Impact of FX translation (2.7) -
Like-for-like revenue growth 1,110.8 1,291.6 (14%)
26 weeks to 26 weeks to Growth
2 March 2025
3 March 2024
£m £m %
Revenue 1,299.4 1,505.8 (14%)
Adjusting items (Note 3) (7.8) (8.3)
Impact of FX translation 16.6 -
Like-for-like revenue growth 1,308.2 1,497.5 (13%)
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.
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
GMV 1,170.1 1,277.4
Less revenue attributable to partners (151.0) (55.1)
Adjusted retail sales 1,019.1 1,222.3
Adjusting items 0.3 5.5
Reported retail sales 1,019.4 1,227.8
Like-for-like GMV growth Revenue Like-for-like GMV growth eliminates the effect of exchange rate fluctuations 26 weeks to 26 weeks to Growth
on the period-on-period GMV metric.
1 March 2026
2 March 2025
£m £m %
GMV 1,170.1 1,277.4 (8%)
Impact of FX translation (4.5) -
Like-for-like GMV growth 1,165.6 1,277.4 (9%)
26 weeks to 26 weeks to Growth
2 March 2025
3 March 2024
£m £m %
GMV 1,277.4 1,454.9 (12%)
Impact of FX translation 16.1 -
Like-for-like GMV growth 1,293.5 1,454.9 (11%)
26 weeks to 26 weeks to Growth
2 March 2025
3 March 2024
£m £m %
Revenue 1,299.4 1,505.8 (14%)
Adjusting items (Note 3) (7.8) (8.3)
Impact of FX translation 16.6 -
Like-for-like revenue growth 1,308.2 1,497.5 (13%)
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.
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
GMV 1,170.1 1,277.4
Less revenue attributable to partners (151.0) (55.1)
Adjusted retail sales 1,019.1 1,222.3
Adjusting items 0.3 5.5
Reported retail sales 1,019.4 1,227.8
Like-for-like GMV growth
Revenue
Like-for-like GMV growth eliminates the effect of exchange rate fluctuations
on the period-on-period GMV metric.
26 weeks to 26 weeks to Growth
1 March 2026
2 March 2025
£m £m %
GMV 1,170.1 1,277.4 (8%)
Impact of FX translation (4.5) -
Like-for-like GMV growth 1,165.6 1,277.4 (9%)
26 weeks to 26 weeks to Growth
2 March 2025
3 March 2024
£m £m %
GMV 1,277.4 1,454.9 (12%)
Impact of FX translation 16.1 -
Like-for-like GMV growth 1,293.5 1,454.9 (11%)
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:
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Revenue 1,116.0 1,299.4
Adjusting items (Note 3) (2.5) (7.8)
Adjusted revenue 1,113.5 1,291.6
Gross profit 542.9 586.6
Adjusting items (Note 3) (2.5) (2.4)
Adjusted gross profit 540.4 584.2
Gross margin 48.6% 45.1%
Adjusted gross margin % 48.5% 45.2%
Adjusted cost None Operating expenses (excluding depreciation, amortisation and impairments, and Adjusted cost to serve reflects the underlying profitability of the business
to serve excluding adjusting items) as a percentage of adjusted revenue. and demonstrates discipline on cost structure.
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Operating expenses 644.8 813.0
Less depreciation and amortisation (81.7) (84.0)
(per cash flow)
Less impairment (per cash flow) (72.7) (142.5)
Less adjusting operating expenses (Note 3) (83.4) (186.7)
Add back adjusting depreciation and amortisation (Note 3) 2.3 2.1
Add back adjusting impairment (Note 3) 69.8 142.3
479.1 544.2
Adjusted revenue 1,113.5 1,291.6
Adjusted cost to serve 43.0% 42.1%
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 period, excluding
adjusted profit/(loss) before tax (see below). the impact of any transactions outside of the ordinary course of business and
not considered to be part of the Group's 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 26 weeks to 26 weeks to
profit/(loss) before tax which, if included, could distort comparability
between periods. 1 March 2026
2 March 2025
£m £m
Operating loss (100.9) (210.1)
In determining which items to exclude, the Group considers items which are Adjusting items excluding finance costs 82.6 170.5
significant either by virtue of their size and/or nature, or that are
(Note 3)
non-recurring. Adjusted EBIT (18.3) (39.6)
Net finance costs (Note 6) (37.0) (31.4)
Add back adjusting finance costs (Note 3) 2.9 1.5
Adjusted loss before tax (52.4) (69.5)
Add back adjusting items (Note 3) (85.5) (172.0)
Loss before tax (137.9) (241.5)
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.
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Operating expenses 644.8 813.0
Less depreciation and amortisation (81.7) (84.0)
(per cash flow)
Less impairment (per cash flow) (72.7) (142.5)
Less adjusting operating expenses (Note 3) (83.4) (186.7)
Add back adjusting depreciation and amortisation (Note 3) 2.3 2.1
Add back adjusting impairment (Note 3) 69.8 142.3
479.1 544.2
Adjusted revenue 1,113.5 1,291.6
Adjusted cost to serve 43.0% 42.1%
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 period, excluding
the impact of any transactions outside of the ordinary course of business and
not considered to be part of the Group's 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 periods.
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.
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Operating loss (100.9) (210.1)
Adjusting items excluding finance costs 82.6 170.5
(Note 3)
Adjusted EBIT (18.3) (39.6)
Net finance costs (Note 6) (37.0) (31.4)
Add back adjusting finance costs (Note 3) 2.9 1.5
Adjusted loss before tax (52.4) (69.5)
Add back adjusting items (Note 3) (85.5) (172.0)
Loss before tax (137.9) (241.5)
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. 26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Adjusted EBIT (above) (18.3) (39.6)
Add back depreciation and amortisation 81.7 84.0
(per cash flow)
Add back impairment (per cash flow) 72.7 142.5
Less adjusting depreciation and amortisation (2.3) (2.1)
(Note 3)
Less adjusting impairment (Note 3) (69.8) (142.3)
Adjusted EBITDA 64.0 42.5
Revenue 1,116.0 1,299.4
Adjusting items (Note 3) (2.5) (7.8)
Adjusted revenue 1,113.5 1,291.6
Adjusted EBITDA margin % 5.7% 3.3%
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 period-end, but excluding outstanding lease 18.
liabilities.
A reconciliation is included below:
As at As at
1 March 2026
2 March 2025
£m £m
Cash and cash equivalents 209.5 220.7
Borrowings (504.4) (496.5)
Lease liabilities (224.6) (235.3)
Net borrowings (519.5) (511.1)
Add back lease liabilities 224.6 235.3
Net debt (294.9) (275.8)
Free cash flow Operating cash flow Free cash flow is net cash generated from operating activities, after cash A measure of the cash generated by the Group outside cash flows relating to
capital expenditure, lease and interest payments, and cash flows from M&A and financing transactions, which allows management to better assess
associates. the cash being generated by the business.
A reconciliation to the cash flow statement is shown below:
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Cash generated from operations (per cash flow) (12.0) (17.0)
Purchase of tangible and intangible assets (40.8) (47.4)
Repayment of principal portion of lease liabilities (14.5) (13.7)
Net interest paid (28.3) (6.0)
Distributions received from associates 3.0 -
Free cash flow (92.6) (84.1)
Net cash/(debt)
None
Cash and cash equivalents less the carrying value of borrowings (including
accrued interest) drawn down at period-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:
As at As at
1 March 2026
2 March 2025
£m £m
Cash and cash equivalents 209.5 220.7
Borrowings (504.4) (496.5)
Lease liabilities (224.6) (235.3)
Net borrowings (519.5) (511.1)
Add back lease liabilities 224.6 235.3
Net debt (294.9) (275.8)
Free cash flow
Operating cash flow
Free cash flow is net cash generated from operating activities, after cash
capital expenditure, lease and interest payments, and cash flows from
associates.
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:
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Cash generated from operations (per cash flow) (12.0) (17.0)
Purchase of tangible and intangible assets (40.8) (47.4)
Repayment of principal portion of lease liabilities (14.5) (13.7)
Net interest paid (28.3) (6.0)
Distributions received from associates 3.0 -
Free cash flow (92.6) (84.1)
Performance measure Closest IFRS measure Definition How ASOS uses this measure
Other working capital movements None Removes working capital and cash movements relating to adjusting items. To provide a reconciliation of the working capital movement in the Financial
(Per Financial Review) Statements to the other working capital movement in the Financial Review.
26 weeks to 26 weeks to
1 March 2026
2 March 2025
£m £m
Increase in other working capital (per Financial Review) (86.6) (148.8)
Comprises:
Working capital per cash flow (excluding inventory) (104.0) (123.9)
Working capital relating to adjusting items (see below) 17.4 (24.9)
(86.6) (148.8)
Working capital relating to adjusting items:
Adjusting items (Note 3) (85.5) (172.0)
Add back adjusting impairment (Note 3) 69.8 142.3
Add back adjusting amortisation (Note 3) 2.3 2.1
Add back commercial operating model change (Cost of sales) (Note 3) - 5.4
Add back share of associate's adjusting results (Note 3) 1.7 -
Less gain on disposal of brands - (13.8)
Less refinancing loss/(gain) 7.7 (2.6)
Add back adjusting finance costs (Note 3) 2.9 1.5
Adjusting working capital before cash impacts (1.1) (37.1)
Cash impact of adjusting items (Note 3) 18.5 12.2
Working capital relating to adjusting items 17.4 (24.9)
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