ASOS (ASC) Trading update summary

Executive summary

• Achieved approximately 50% year-over-year increase in adjusted EBITDA for H1 FY26, driven by strategic focus on product, customer experience, and operational efficiency.

• Continued progress on three strategic pillars: Relevant Fashion Product, Inspirational Shopping Experience, and Efficient Operating Model.

• Improvements in new customer growth and strong performance in womenswear signal positive sales momentum.

Financial highlights

• GMV declined 9% year-over-year, but showed sequential quarterly improvement: +4 percentage points from Q4 2025 to Q1 2026, and +2 percentage points in Q2 2026.

• UK market outperformed group with GMV down 5% year-over-year.

• Adjusted gross margin increased by 330bps year-over-year to 48.5%.

• Adjusted EBITDA rose approximately 50% year-over-year, despite negative impact from IEEPA tariffs.

• Total fixed costs reduced by more than 10% year-over-year; supply chain cost to serve improved by 150bps.

Outlook and guidance

• FY2026 guidance reiterated: GMV expected to improve throughout the year, 3-4 percentage points ahead of revenue.

• Gross margin improvement of at least 100bps to 48-50% targeted.

• Adjusted EBITDA guidance set at £150m–£180m.

• Free cash flow expected to be broadly neutral.