ASOS PLC (LSE:ASC) reported a smaller loss in the first half of the year but dampened down expectations for full-year revenue growth.
The online fashion retailer last month helped scrape its shares off recent 17-year lows as a trading update revealed a return to growth in full-price sales across its own-label ranges.
Thursday’s interim results showed group revenues down 13% on a headline basis to £1.29 billion for the 26 weeks to 2 March, with a swing to positive adjusted EBITDA of £42.5 million from a £16.3 million loss a year earlier.
On a reported basis, revenue fell 14% to £1.3 billion and pre-tax losses fell to £241.5 million from £270 million.
For the full year, the AIM-listed group said it expects revenue growth “towards the bottom end of consensus range”, where City analysts are currently forecasting a decline of between 9% and 2%.
But CEO José Antonio Ramos Calamonte said the half-year results were “the strongest sign yet that our new commercial model is working. We are driving a significant transformation in profitability, with positive adjusted EBITDA up by circa £60 million year on year.
“Customers are responding positively to our focus on full-price sales, speed to market, and quality, resulting in a +9% YoY increase in ASOS Design sales in the UK, and positive momentum with our partner brands.”
He expects full-year gross margin improvement to at least 46%, from 45.1% in the first half and 40% a year ago, to lift adjusted EBITDA to between £130 million and £150 million.
Having made “substantial progress” on operational costs, he expressed confidence that the 2026 financial year “will generate meaningful free cash flow”.