ASOS PLC (LSE:ASC) shares strutted 9.6% to 315.5p has strengthened its balance sheet and cut costs by selling a fulfilment warehouse in Atlanta, USA for a net gain of around £48 million.
The online fashion retailer said it had assigned the site’s lease to a global consumer brand and sold the related automation assets to a member of DHL Group.
The Atlanta site was no longer operational and had already been fully written down in previous periods.
ASOS said the deal would deliver annual cash savings of about £6 million, mainly from rent and other occupancy costs.
A one-off profit before tax of about £78 million will be booked in the 2026 financial year, after adjustments to property liabilities.
The proceeds follow the £67 million raised from the sale of another UK fulfilment centre in May.
Together, the two disposals reduce pro forma net debt, excluding lease liabilities, to about £180 million from £295 million at 1 March.
Chief executive Jose Antonio Ramos said the sale showed ASOS was “strengthening the balance sheet, simplifying the business and maintaining strict discipline” on capital allocation.
Proceeds from the sales are being retained "to support financial flexibility".
Broker Panmure Liberum said the two sales imply that the group’s net debt position (excluding leases) at the August year end "could be under £100 million (from £294 million at 1H’26)".
FCF generation "should improve to over £35 million per annum" from next year, implying at least a 10% FCF yield on the current share price.
The broker said the Atlanta fulfilment disposal materially strengthens ASOS's financial position.
It should also improve the retailer's ability to secure favourable refinancing terms ahead of the £253 million convertibles due in September 2028, which carry an 11% coupon.
The broker added that it remains concerned about ASOS's market positioning and declining sales, particularly across international markets that account for around 50% of group revenue.
** UPDATE: Adds share price and broker comment **
