ASOS PLC (LSE:ASC) has reported a near-50% jump in underlying profits (EBITDA) for the first half of its financial year, as the online fashion retailer's turnaround continues to gain momentum.
The improvement was driven by a higher gross margin, which rose to 48.5%, alongside lower return rates and tighter cost control. The full-year margin target is 48-50%.
Sales, however, remain under pressure, with total goods sold down 9% year on year, though the rate of decline has improved from 12% in the previous full year.
The ASOS World loyalty scheme has reached 3.5 million UK members and is being rolled out to the US, Germany and Austria.
Chief executive José Antonio Ramos Calamonte said: "We are seeing improvements in new customer growth and strong performance in our womenswear business, both of which are encouraging lead indicators for sales growth.
"With an accelerated cadence of initiatives still to come this year, we are well positioned to deliver further improvements for customers and the business as our focus remains on sustainable, profitable growth."
The company reiterated its full-year guidance, targeting underlying profits of between £150 million and £180 million.