ASOS Plc

FY25 GMV decreased 12% year on year. Gross margin increased 370 basis points to more than 47%. Adjusted EBITDA increased by over GBP 50 million year on year to GBP 132 million. Inventory fell by GBP 118 million to just over GBP 400 million, a 23% reduction. Free cash inflow was GBP 14 million, ahead of guidance. Net debt improved by GBP 112 million to GBP 185 million. For FY26, management expects GMV to improve through the year, with GMV running around 3 to 4 percentage points ahead of revenue performance, gross margin expansion of at least 100 basis points above 48%, adjusted EBITDA of GBP 150 million to GBP 180 million, and broadly neutral free cash flow. Medium term, the company reiterated its target of returning to GMV growth, an 8% adjusted EBITDA margin, and structural free cash flow positive.

Jose Antonio Calamonte framed FY25 as a major step in ASOS’s multi-year turnaround, saying the company has reset its legacy stock and debt problems and now has a structurally better operating model. He emphasized three pillars of differentiation: relevant product, an inspirational shopping experience, and an efficient operating model. His tone was confident and directional, with repeated references to speed, flexibility, AI, and a deliberate push to re-engage consumers rather than just cut costs.

Aaron Izzard described FY25 as the year ASOS built a sustainably profitable base for the final stage of transformation. He cited GMV down 12%, gross margin up 370 basis points, adjusted EBITDA up to GBP 132 million, inventory down GBP 118 million, free cash inflow of GBP 14 million, and net debt down to GBP 185 million. He also highlighted cash discipline, including CapEx of GBP 86 million, net interest of GBP 33 million, and the refinancing benefits of 5 years maturity extension to 2030, GBP 87.5 million of additional liquidity headroom, and about GBP 5 million of cash interest savings on an LFL basis.

Analysts asked about basket value, premium brands, category performance, the quality of new U.K. customers, cost savings, balance sheet targets, Gen Z exposure, TikTok Shop, agentic e-commerce, and AI competition. Management said basket value has risen 3% to 5% year over year over the last 24 months, with more premium and upper-mass-market brands gaining traction, womenswear performing best, sportswear apparel improving, and footwear weaker. On growth and AI, they said FY26 guidance does not require a return to growth, new U.K. customers are buying more categories and less promotion, the goal is eventually net debt neutral, and ASOS believes it is not playing catch-up on AI because it has high-quality customer data, a strategic Microsoft partnership, and multiple AI pilots already live.