REG - ASOS PLC - Pre-close Trading Update

AsosAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260325:nRSY9809Xa&default-theme=true

RNS Number : 9809X  ASOS PLC  25 March 2026

25 March 2026

ASOS Plc ("the Company")

Global Online Fashion Destination

 

Pre-close Trading Update

c.50% YoY improvement in EBITDA; Guidance reiterated

 

Ahead of publication of its half-year results for the period ended 1 March
2026, the Company provides a trading update for the first six months of the
financial year. The Company has continued to make good progress on its three
strategic pillars - Relevant Fashion Product, Inspirational Shopping
Experience and Efficient Operating Model - and reiterates its FY26 guidance.

José Antonio Ramos Calamonte, Chief Executive Officer, said: "Our first half
shows continued progress on executing our strategic priorities across Relevant
Fashion Product, Inspirational Shopping Experience and an Efficient Operating
Model.  The result has been a c.50% YoY increase in underlying profitability.
The enhancements we have made to the customer experience, including our
revitalised app, are helping people to find not just items, but outfits,
styled just for them. We are seeing improvements in new customer growth and
strong performance in our womenswear business, both of which are encouraging
lead indicators for sales growth. With an accelerated cadence of initiatives
still to come this year, we are well positioned to deliver further
improvements for customers and the business as our focus remains on
sustainable, profitable growth."

H1 trading update

·      GMV(1) -9% YoY, with sequential quarterly improvement of +4ppts
Q4 2025 to Q1 2026, followed by a further +2ppts in Q2 2026. Improvements were
delivered across core markets (UK, US, Germany and France) and categories
where initiatives were concentrated, including:

o  The UK, the largest of its four major markets, outperformed the Group,
delivering GMV(1) of -5% YoY.

o  Womenswear, a priority category, outperformed Group GMV(2) in H1,
delivering a c.10ppt improvement in its growth rate in H1 FY26 versus H2 FY25.

o  In the top four markets combined, new customers have grown +2% YoY with
sequential improvement in Q2 2026 versus Q1 2026.

·      Adjusted gross margin +330bps YoY to 48.5%, demonstrating the
continued success from deployment of the new commercial model and ongoing
expansion of the Flexible Fulfilment model.

·      Adjusted EBITDA(3) increase of c.50% YoY including the negative
impact of IEEPA tariffs, driven by improved gross margin, lower returns rate,
and continued cost discipline.

Strategic Progress

The Company's financial and commercial momentum has been achieved through the
continued execution of its Efficient Operating Model pillar, alongside early
benefits of delivering on Relevant Fashion Product and an Inspirational
Shopping Experience. Highlights for the period include:

·      Relevant Fashion Product:

o  Within Womenswear, the strongest areas of product authority and customer
relevance were prioritised with Outerwear, Evening Dresses and Tops all
achieving GMV(2) growth YoY.

o  Notable success from 'The Heart', a new monthly curated edit bringing
together the strongest Own Brand and Third-Party Brand products in one
inspiring destination. Since the launch of these collections in October, the
outfit curation has resonated strongly with customers, achieving more than
double the rate of sale versus our standard 'New In' range.

·      Inspirational Shopping Experience:

o  Dramatically revamped the ASOS App experience, driving an uplift in net
sales per customer, average order value and higher engagement. This was
supported by new features launched towards the end of the period, including
Virtual Try‑On, 'Ways to Style', more immersive imagery, the ability to save
full outfits and to follow brands, with further enhancements planned for the
remainder of the year.

o  Building on the success of ASOS.World in the UK, which has reached c.3.5m
members (c.1m members as at the end of FY25) with a 60% adoption rate, the
loyalty programme has recently been rolled out to customers in the US, Germany
and Austria.

·     Efficient Operating Model:

o  Strong cost discipline continued with total fixed cost reduction of more
than 10% YoY and total supply chain cost to serve improving a further 150bps
YoY, the latter driven predominantly by warehouse optimisation and UK
distribution contract renegotiations.

o  Sell-through rate on A/W stock, +60bps YoY, aided by further advancements
in speed-to-market initiatives and rigorous inventory management, leaving
stock in a clean and healthy position.

o  Underlying returns rate reduced by c.160bps YoY, mainly as a result from
the successful actions taken to improve transparency for customers.

Outlook

The Company reiterates its expectations for FY2026:

·      GMV to show an improving trajectory throughout the year, 3-4ppts
ahead of revenue.

·      Gross margin improvement of at least 100bps to 48-50%.

·      Adjusted EBITDA of £150m-£180m.

·      Broadly neutral free cash flow.

A further update will be provided at the Interim Results.

For further information:

 ASOS
 plc
 Phil Clark, Head of Investor Relations                                                                                                                    Email: investorenquiries@asos.com

 Hannah Alderman, Investor Relations Manager

 Teneo
 Jonathan Sibun / Will Palfreyman                                                                                                                          Tel: 020 7353 4200

 Notes:

1    Gross Merchandise Value (GMV) defined as 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 i.e. adjusted for the
impact of foreign exchange translation and adjusting items.

2    Gross GMV excluding tax on a billed basis.

3    Includes c.£4m of provision releases relating to updated dilapidation
estimates for our Atlanta and Lichfield warehouses.

 

About ASOS

Founded in 2000, ASOS has 17m active customers in over 150 markets. We bring
fashion lovers around the world the best and most relevant fashion through our
unique own brands including ASOS DESIGN, ARRANGE, COLLUSION, Topshop, and
Topman, styled with the most exciting products from local and global partner
brands. With our expert in-house design team and agile and flexible commercial
model, including ASOS Fulfilment Services, Partner Fulfils, and Test &
React, we make the latest trends accessible to all and give customers the
confidence to be whoever they want to be.

Forward looking statements

This announcement may include statements that are, or may be deemed to be,
"forward-looking statements" (including words such as "believe", "expect",
"estimate", "intend", "anticipate" and words of similar meaning). By their
nature, forward-looking statements involve risk and uncertainty since they
relate to future events and circumstances, and actual results may, and often
do, differ materially from any forward-looking statements. Any forward-looking
statements in this announcement reflect management's view with respect to
future events as at the date of this announcement. Save as required by
applicable law, ASOS plc undertakes no obligation to publicly revise any
forward-looking statements in this announcement, whether following any change
in its expectations or to reflect events or circumstances after the date of
this announcement.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTAKQBPKBKBONB



            Copyright 2019 Regulatory News Service, all rights reserved