The British clothing dealer ASOS PLC has not fully fulfilled sales expectations for the 2024/25 financial year. This emerges from an intermediate notification that the company published on Tuesday.
In the past financial year, the proceeds had “slightly under the market expectations”, the retailer admitted without naming concrete figures. The gross rare value (GMV) was also “lower than expected”.
Austerity measures ensure significant improvement in results
Thanks to extensive reforms, the group was able to improve its profitability. As a result of the conversion of the business model and lower price reductions, the gross margin increased by around 350 basis points compared to the previous year, ASOS explained.
According to its own statements, the group was able to implement a number of measures that should ensure cost reductions and an improvement in operational efficiency. Among other things, the causes of unnecessary returns were reduced, delivery contracts were reorganized and the logistics capacities were optimized. The company hopes for significant savings from these initiatives from the current financial year.
For the current year, the management predicts results “in the context of the market expectations”
In the past financial year, the result, which was adjusted for special effects before interest, taxes and depreciation (EBITDA), rose by more than 60 percent compared to the higher gross margin and lower costs compared to the previous year, ASOS. It was “at the bottom” of the forecast corridor of 130 to £ 150 million. The adjusted Ebitda margin was over five percent and thus in the context of expectations.
For the current financial year 2025/26, management is currently expecting an adjusted EBITDA as part of the market expectations. In the medium term, the company is aiming to return to sales growth and improvements to the gross margin to around 50 percent and the adjusted EBITDA margin to around eight percent.