ASOS PLC (LSE:ASC) shares jumped 10% to 241p on Monday after the online fashion retailer agreed to dispose of an unwanted distribution warehouse for a £66 million net profit.
The company said the sale of its Lichfield facility would also bring annual cash savings of £6 million for rent and occupancy costs.
The disposal of the site, which had already been mothballed ahead of an expected sale, "marks another step in the structural transformation of the financial position of ASOS", it said.
ASOS said lower stock levels and the expansion of its flexible fulfilment model had reduced warehouse capacity requirements, with its remaining sites in Barnsley and Berlin able to support future growth.
Broker Peel Hunt said profit from the transaction would reduce its year-end net debt forecast to circa £100 million, "further strengthening the group’s balance sheet".
It would also leave the shares trading on a valuation multiple of 4.4 times enterprise value to forecast underlying earnings (EBITDA) for the 2027 financial year.
"Our underlying P&L forecasts are unchanged," said analyst John Stevenson. "All eyes remain on trading, with green shoots and customer KPIs suggesting that ASOS can move back into growth during CY26."