ASOS (ASC) H1 2026 earnings summary

Executive summary

• Transformation plan is progressing, delivering on restructuring promises and focusing on growth and operational discipline.

• Early positive signs in core business segments, especially womenswear and the UK, with a clear plan for H2 execution.

• Customer base decline is plateauing, with improved retention and new customer growth in top markets.

• Group revenue declined 14% YoY to £1,113.5m, reflecting a shift to flexible fulfilment models and lower GMV.

• Net loss before tax narrowed to £137.9m from £241.5m YoY, with statutory operating loss at £100.9m.

Financial highlights

• Adjusted gross margin improved by 330bps YoY to 48.5% in H1, marking eight consecutive quarters of improvement.

• Adjusted EBITDA up 51% YoY to £64m; profit per order up 30% YoY.

• Inventory reduced by 10% in H1 and over 60% in three years.

• Free cash outflow of £92.6m–£93m in H1, reflecting normal seasonality and higher interest costs.

• Net debt increased to £294.9m, mainly due to non-cash interest on convertible bonds.

Outlook and guidance

• FY26 guidance unchanged: GMV to improve 3–4ppts ahead of revenue, gross margin to rise at least 100bps to 48–50%, adjusted EBITDA £150–180m, and broadly neutral free cash flow.

• Q3 trading in line with expectations; new customer growth +9% in March, first positive month since September 2021.

• CapEx to remain tightly controlled at 3–4% of sales, mainly for tech development.