ASOS Plc

FY25 GMV declined 12% year on year. Gross margin increased by 370 basis points, to more than 47%. Adjusted EBITDA improved by over GBP 50 million year on year to GBP 132 million. Cost to serve fell 12% in absolute terms, though it increased by 130 basis points as a percentage of sales because of volume deleverage and Topshop royalties. Free cash inflow was GBP 14 million, ahead of guidance, stock fell by GBP 118 million to just over GBP 400 million, and net debt improved by GBP 112 million to GBP 185 million. For FY26, ASOS expects GMV to improve through the year, gross margin to expand by at least 100 basis points above 48%, adjusted EBITDA of GBP 150 million to GBP 180 million, and broadly neutral free cash flow.

Jose Antonio Calamonte framed FY25 as the point where ASOS completed the hard reset of the business: clearing legacy stock and debt, reshaping fulfillment, and shifting from heavy promotions toward speed, relevance, and profitability. He emphasized that ASOS wants to compete through a unique mix of own-brand and partner brands, outfit-led inspiration, and a more efficient operating model, then use that base to re-engage consumers. His tone was upbeat and confident, especially around the new customer signs, better engagement, and the planned FY26 rollout of AI, loyalty, and shopping-experience upgrades.

Aaron Izzard described FY25 as the second stage of transformation: building a structurally profitable base with deeper variable and fixed cost optimization. He highlighted the key figures: GMV down 12%, gross margin up 370 basis points, adjusted EBITDA up to GBP 132 million, free cash inflow of GBP 14 million, stock down GBP 118 million to just over GBP 400 million, and net debt down to GBP 185 million. He also detailed the refinancing, which extends maturities to 2030, adds GBP 87.5 million of liquidity headroom, and lowers cash interest by about GBP 5 million on an LFL basis.

Analysts focused on basket value, premium brands, category performance, new customer quality, cost savings, balance sheet targets, TikTok Shop, agentic commerce, and whether ASOS is catching up or leading on AI. Management said basket value has been rising 3% to 5% year over year, with more full-price buying and a stable unit count, and noted that premium/high-street brands are gaining traction. On guidance, Aaron said FY26 does not require return to growth to hit the GBP 150 million to GBP 180 million EBITDA range, and that the goal over time is to move toward net debt neutrality. Jose said ASOS is active on TikTok mainly as a discovery channel, is partnering with Microsoft, Sierra, and other AI players, and believes its 16 million customers plus styling data give it an advantage rather than a catch-up position.