ASOS reported improved H1 earnings and narrower losses, even as sales, customer numbers and GMV continued to decline.
For the six months ended 1 March 2026, adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 51% year-on-year (YoY) to £64m ($86.1m).
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Gross merchandise value (GMV) fell 9% to £1.17bn while revenue was down 14% to £1.11bn.
The online fashion retailer said the decline reflected an opening customer database that was 14% smaller than a year earlier.
Active customers dropped 9% to 16.5 million while pre-tax losses narrowed to £137.9m from £241.5m in the first half of FY25.
Asos said the latest number was largely due to a non-cash impairment charge of £67.3m on legacy technology assets following its decision to shift its ERP [enterprise resource planning] system to Microsoft Dynamics 365.
Operating loss improved to £100.9m, compared with £210.1m a year earlier.
Asos CEO José Antonio Ramos Calamonte said: “The first half of 2026 has seen significant progress and momentum for Asos.
“Together, we are taking decisive steps towards re-establishing Asos as a leading online fashion destination. And even more exciting, there’s a lot more to come.”
Net debt, excluding lease liabilities, increased by £19.1m to £294.9m, which the company attributed mainly to non-cash interest accretion on its convertible bond.
The UK outperformed the wider business, with GMV down 5% and new customer growth of 10%.
Across its four largest markets, new customer growth on a six-month rolling basis reached 2% by period-end, compared with a 12% decline at the close of FY25.
Asos said its flexible fulfilment model now represented more than 20% of third-party GMV.
Its Asos fulfilment services have increased its share of third-party GMV by nine percentage points versus the previous half.
At its fulfilment centre in Berlin, Germany, a new automated pick-from-carton process is expected to reduce productive labour costs by around £2.5m annually.
In third-quarter trading so far, Asos said GMV growth showed further sequential improvement.
Womenswear returned to YoY growth, while group new customer growth reached 9% in March 2026, the company said, marking the first month of growth since September 2021.
Asos reiterated its FY26 guidance, targeting adjusted EBITDA of £150m–£180m, a gross margin improvement of at least 100 basis points to 48%–50%, a GMV growth trajectory improving through the year at three to four percentage points ahead of revenue, and broadly neutral free cash flow.
It also said it is in talks with third parties over a potential sale of its distribution centre in Lichfield, UK, although any deal remains subject to negotiations, due diligence and contract.
