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ASOS warns on revenue miss, shares tumble 11%
Asos expects profit to rise over 60% despite sales falling below forecasts due to softer consumer demand and ongoing cost-cutting and inventory reductions.
- On Tuesday, online fashion retailer ASOS warned full-year sales and earnings may lag expectations, with shares dropping about a tenth following the update.
- ASOS has pursued a three-stage transformation plan, reducing inventory from £150m in 2022 to about £400m, and mothballed its Atlanta fulfilment centre in the US.
- Adjusted EBITDA rose more than 60% year-on-year, but the company cautioned profit would be at the lower end of its £130m to £150m guided range, while profit per order increased by around 30%.
- Market moves came as ASOS reiterated confidence for fiscal 2026 results, with the share price around 271p and market capitalisation 322m as investor selling continued.
- Looking ahead, ASOS expects gross margin towards around 50% and reiterated sustainable EBITDA margins of about 8%, with cost actions delivering savings in FY26.
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Asos Slumps on Weak Earnings Outlook Amid Complex Overhaul
Asos Plc’s shares dropped the most in more than two years after the online fast fashion chain warned its full-year earnings will come in at the lower end of expectations as it works on a complex turnaround plan.
·New Delhi, India
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ASOS reports profitability gains amid lower sales in FY '25
ASOS announced that it had made strategic progress in FY ’25 despite lower-than-expected sales, as the online fashion retailer continued to focus on building a profitable and resilient foundation through its multi-year turnaround strategy. The company said its financial performance for the year reflected the success of its strategic initiatives, with gross profit margins rising […] The post ASOS reports profitability gains amid lower sales in FY…
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