**SummaryASOS Plc Full Year Trading Update (FY25)**
ASOS Plc released its full-year trading update for FY25, highlighting significant strategic progress in its multi-year turnaround plan. The company’s transformation involved three key phases
1. **Addressing legacy issues**Clearing excess stock, reducing warehouse footprint, and strengthening the balance sheet.
2. **Building a new commercial model**Adopting a disciplined, agile approach to operations, improving full-price sales, and resetting fixed costs to support sustainable growth.
3. **Re-engaging customers**Launching new customer experiences, such as the adidas x ASOS collaboration, ASOS.WORLD loyalty program, and expanding Topshop/Topman channels.
**FY25 Financial Highlights**
**Gross profit margins** increased by ~350bps YoY, driven by higher full-price sales and reduced markdowns.
**Adjusted EBITDA** rose over 60% YoY, reaching the lower end of the £130m–£150m guided range, with margins exceeding 5%.
**Profit per order** grew by ~30% YoY, reflecting improved unit economics.
**Free cash flow** turned positiveahead of neutral guidance.
**Operational efficiencies** delivered multi-year savings, with distribution and warehousing costs down ~3ppts over two years.
**FY26 Outlook**
ASOS is confident in achieving consensus forecasts for FY26, with adjusted EBITDA and free cash flow in line with expectations. The focus will be on building customer engagement, improving gross margins toward 50%, and sustaining cost efficiency. Medium-term guidance includes sustainable adjusted EBITDA growth to ~8% margin and a return to revenue growth.
**Key Initiatives**
Scaling strategic models like Test & React and flexible fulfilment.
Expanding customer experiences and loyalty programs.
Strengthening profitability foundations for long-term growth.
ASOS enters FY26 with a robust business model, improved cost base, and a focus on regaining customer loyalty, positioning itself for sustainable success.