ASOS PLC (LSE:ASC) reported a 29% increase in adjusted EBITDA to £170.3 million for the 52 weeks ended 30 August 2026, compared with £131.6 million a year earlier, as the online fashion retailer returned to quarterly gross merchandise value growth for the first time since 2022.
Group revenue declined 9% to £2.25 billion, while adjusted gross merchandise value (GMV) fell 5% to £2.35 billion. However, the rate of decline improved throughout the financial year, with GMV returning to year-on-year growth in the fourth quarter.
Adjusted Operating Profit Returns to Positive Territory
ASOS reported adjusted operating profit of £18.8 million, compared with an adjusted operating loss of £32.2 million in FY2025.
The adjusted pretax loss narrowed to £46.4 million from £98.2 million, while statutory pretax profit reached £24.4 million, reversing a £281.6 million loss in the previous year.
Adjusted gross margin increased by 340 basis points to 50.5%, supported by changes to purchasing, inventory management and fulfilment operations.
The company reported a 28% increase in profit per order, while its adjusted EBITDA margin improved to 7.6%.
Free cash flow was negative £16.4 million, compared with positive £14.1 million in FY2025.
Net Debt Falls More Than 40%
ASOS reduced net debt to £109.3 million from £184.7 million a year earlier, a reduction of £75.4 million.
The improvement followed operational changes, refinancing completed in November 2025 and the disposal of its Atlanta and Lichfield fulfilment centres for combined proceeds of £115.5 million.
Inventory levels also declined, with the company reporting stock reductions alongside improvements in product availability and fulfilment efficiency.
Customer Growth Returns in Fourth Quarter
ASOS reported quarter-on-quarter growth in its active customer base during the fourth quarter, the first such increase since the second quarter of FY2022.
New customer acquisition increased 6% year-on-year in the fourth quarter, while the company reported improving customer retention.
Womenswear GMV increased 8% in the second half, while the UK recorded 2% growth and Germany advanced 8%.
At the end of October 2026, ASOS had 16.5 million active customers, approximately 1% above its FY2026 year-end level.
The retailer also expanded its flexible fulfilment arrangements, which represented 21% of Partner Brand GMV.
October Cyber Incident Affects Early FY2027 Trading
ASOS disclosed that a cybersecurity incident on 6 October resulted in unauthorised access to certain basic customer information.
The company said its investigation found no compromise of payment information or account passwords, and that its website and app remained operational throughout the incident.
ASOS temporarily suspended some marketing and customer relationship management activities, resuming planned operations within two days.
The retailer estimated that the incident had reduced group GMV by approximately 2% to 4% since 6 October, with the UK particularly affected.
Despite the disruption, group GMV during the opening eight weeks of FY2027 was broadly unchanged year-on-year.
FY2027 EBITDA Forecast at £180 Million to £200 Million
ASOS expects low-single-digit GMV growth during FY2027, alongside adjusted EBITDA of £180 million to £200 million.
Capital expenditure is forecast at approximately 4% of revenue, with the company targeting positive free cash flow.
Management plans further investment in product development, marketing, artificial intelligence and customer experience improvements.
The retailer also intends to hold a Capital Markets Event during FY2027 to provide further details of its growth strategy, including its AI-supported personalisation initiative, The Stylist, and an updated medium-term financial framework.
More About ASOS
ASOS PLC (LSE:ASC) is a UK-based online fashion retailer selling clothing, footwear, accessories and beauty products through its digital platform. The company offers its own fashion labels alongside third-party brands, serving customers across international markets.
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