ASOS PLC: FY 2024/25 Results and Forward Guidance

ASOS PLC, the London‑listed fast‑fashion retailer, released its full‑year results for the year ended 31 August 2025 on 21 November 2025. The company reported an adjusted core profit of £131.6 million, falling short of the £138 million consensus estimate. Despite the miss, the figures confirm a modest improvement in operating profitability compared with the prior year, as the company continues to tighten its cost structure and sharpen its product mix.

  • Adjusted revenue contracted 14.9 % to £2,465 million (from £2,896 million a year earlier).
  • Adjusted GMV declined to £2,456 million from £2,818 million.
  • Adjusted gross profit fell to £1,162 million from £1,257 million.

These declines mirror the broader slowdown in consumer demand for fast fashion, a trend that has pressured ASOS’s sales pipeline across both womenswear and menswear categories. Nevertheless, the company’s cost‑management initiatives—particularly the reduction of marketing spend and the optimisation of inventory levels—have begun to cushion margin compression.

Loss Slippage and Dividend Update

In a separate announcement, ASOS confirmed that its yearly loss has narrowed. While the firm remains below breakeven for the reporting period, the slippage signals a trajectory toward profitability as the company realises savings from its supply‑chain rationalisation and digital‑first strategy. Concurrently, Babcock International announced an interim payout lift, underscoring investor confidence in the sector’s resilience and signalling that ASOS’s governance is aligned with shareholder value creation.

FY 2026 Outlook

ASOS issued a cautious yet forward‑looking guidance for FY 2026:

  • The company expects adjusted core profit to remain modestly below 2025 levels, reflecting ongoing market softness.
  • GMV growth is projected to recover gradually as the brand refocuses on core product lines and leverages its online platform to capture high‑margin segments.
  • A cost‑control framework will be maintained, with particular emphasis on reducing marketing expense and improving supply‑chain efficiency.

Management’s remarks suggest that while the next fiscal year will be challenging, the company’s strategic pivot toward a leaner operation and data‑driven merchandising is poised to deliver sustainable returns.

Market Context

The FTSE 100 closed marginally higher on 20 November, reflecting a mixed backdrop of US jobs data and ongoing volatility in AI valuations. Within this environment, ASOS’s share price—closing at £2.47 on 19 November—has remained within a range that reflects investors’ tempered expectations for growth amid a broader consumer‑retail downturn. Analysts note that ASOS’s performance is emblematic of the sector’s struggle to reconcile rapid expansion with the need for margin preservation.

Strategic Implications

  • Margin Improvement: The company’s emphasis on cost containment is expected to lift profitability in the medium term, even as top‑line growth moderates.
  • Digital‑First Focus: Strengthening the online platform is key to capturing repeat customers and increasing average order value.
  • Supply‑Chain Resilience: Continued investment in logistics and inventory optimisation will be crucial to mitigate the impact of external supply disruptions.

In summary, ASOS PLC is navigating a transitional phase marked by declining revenue but incremental profitability gains. The firm’s FY 2026 guidance signals a disciplined approach to cost management while positioning itself to rebound once consumer demand stabilises. Investors should monitor the company’s execution on its digital and supply‑chain initiatives as the primary drivers of future earnings growth.