British online retailer Asos reported progress in its multi-year turnaround. The Group delivered significant improvements in profitability, inventory efficiency and cost discipline in the 52 weeks ended August 31, 2025.
The company recorded an adjusted loss before taxes of 98.2 million British pounds (around 111 million euros). Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were 131.6 million British pounds. This is an improvement of 51.5 million British pounds compared to the previous year. It reflects the effects of the new business and existing models.
Adjusted consolidated sales fell by 14 percent to around 2.5 billion British pounds in the reporting year. Gross merchandise volume (GMV) fell by twelve percent year-on-year. This reflects ongoing macroeconomic pressures. The company is also focusing on improving order profitability.
“With the most difficult work behind us, I am more confident than ever that we have the right strategy and capabilities to achieve our goal of becoming the most exciting destination for fashion lovers,” Asos CEO José Antonio Ramos Calamonte said in a statement.
Asos annual results in core markets
Britain remained the most resilient region. The GMV here fell by seven percent. This was due to lower website traffic and reduced order volumes amid cautious consumer sentiment. In Europe as a whole, GMV fell by 16 percent. This was influenced by strategic measures to remove unprofitable orders and a 17 percent decrease in website visits. Orders fell by 20 percent. However, this was partially offset by a five percent increase in average basket value. This was due to stronger performance in full-price sales and reduced discounts.
In the US, GMV fell 18 percent. An eight percent increase in average basket value helped offset a 24 percent decline in order volume. GMV in the rest of the world fell 15 percent. Weaker regional demand contributed to a 17 percent decline in orders.
outlook
Improved full-price sell-through supported a gross margin of 47.1 percent. This puts the company in line with its medium-term target of 50 percent. Asos ended the 2025 financial year with a structurally leaner cost base. This enabled an adjusted EBITDA margin of 5.3 percent.
The group reported a pre-tax statutory loss of £281.6 million. This includes 183.4 million British pounds in adjustment items. These largely relate to real estate-related charges in connection with the closure of the US logistics center. Basic and diluted loss per share was 250.1 pence. This is an improvement from 284.4 pence in the 2024 financial year. This was driven by a narrower loss after tax of 298.4 million British pounds, compared to 338.7 million British pounds in the previous year.
Looking ahead to the 2026 financial year, Asos said the strategic and financial progress achieved through the turnaround positions the company for a year of further improvement. The company expects GMV to show a stronger upward trend during the fiscal year. Adjusted EBITDA is expected to increase to between £150 million and £180 million.
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