Online fashion retailer swings back to expansion in the final quarter after two years of shrinking, with margins beating its own targets
ASOS has returned to sales growth for the first time in years, capping a turnaround that has sharply lifted profit and slashed borrowing.
The online fashion retailer, which sells own labels such as Topshop alongside partner brands to more than 16 million customers worldwide, said gross merchandise value grew in the low single digits in the fourth quarter.
That marks a notable shift after a run of decline, though sales still fell 5% across the full year to 30 August.
Adjusted earnings before interest, tax, depreciation and amortisation rose more than 25%, coming in above the midpoint of the £150 million to £180 million range the company had guided to.
Gross margin topped 50%, beating both its 48% to 50% target for the year and its medium-term goal.
The improvement came from smarter buying, selling more stock at full price and expanding its model of shipping goods directly from brand partners.
Net debt roughly halved to about £110 million, down from £184.7 million a year earlier, helped by £116 million raised from selling warehouses in Lichfield and Atlanta.
The recovery is broadening across ASOS's main markets.
Britain and Germany both grew in the second half, the United States returned to growth in the fourth quarter, and womenswear, a priority for the company, rose 3% over the year.
Customer numbers, long a soft spot, also turned a corner, with fourth-quarter shoppers up on the previous three months in the first such rise since early 2022.
Chief executive José Antonio Ramos Calamonte said the business was showing consistent delivery and that its recovery was widening despite a tough economic backdrop.
Investors will get the full picture on 5 November, when ASOS publishes its annual results.
