UK's ASOS FY26 adjusted EBIT beats expectations on higher profit per order
UK's ASOS FY26 adjusted EBIT beats expectations on higher profit per order
Overview
UK online fashion retailer's FY26 revenue fell 9% yr/yr, meeting analyst expectations
Adjusted EBIT and adjusted pretax loss for FY26 both beat analyst estimates
Company improved gross margin and reduced net debt, citing operational efficiencies
Outlook
ASOS expects low-single digit GMV growth in FY27
Company guides for FY27 adjusted EBITDA of £180-200 mln
ASOS expects positive free cash flow generation in FY27
Result Drivers
GROSS MARGIN IMPROVEMENT - Co said gross margin rose 340bps to 50.5%, driven by better buying and sourcing, expansion of flexible fulfilment models, and focus on full-price sales through disciplined inventory management
SUPPLY CHAIN EFFICIENCIES - Co attributed 28% improvement in profit per order and lower cost to serve to productivity and efficiency gains in its fulfilment network, despite some operational disruptions
MARKETING AND CUSTOMER EXPERIENCE INVESTMENT - Co said increased marketing spend and enhancements to the app and personalisation drove higher engagement and revenue per customer
Company press release: ID:nRSE8711Ba
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Meet | GBP 2.25 bln | GBP 2.25 bln (12 Analysts) |
FY Gross Margin |
| 50.60% |
|
FY Adjusted EBIT | Beat | GBP 18.80 mln | GBP 11.88 mln (6 Analysts) |
FY Adjusted Pretax Loss | Beat | GBP 46.40 mln | GBP 54.18 mln (10 Analysts) |
FY Pretax Profit |
| GBP 24.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the department stores peer group is "buy."
Wall Street's median 12-month price target for ASOS PLC is GBp462.50, about 9.6% above its November 4 closing price of GBp422.00
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)