**Summary**
ASOS PLCs interim results for the 26 weeks to 1 March 2026 show a 51% growth in AEBITDA, driven by a transformation that has delivered fundamental improvements. Key financial highlights include a 9% decline in Gross Merchandise Value (GMV) to ยฃ1,170.1 million, a 14% drop in adjusted group revenue to ยฃ1,113.5 million, and an adjusted gross margin improvement of 330 basis points to 48.5%. Adjusted EBITDA increased significantly to ยฃ64.0 million, and adjusted EBIT improved to -ยฃ18.3 million. Net debt stood at -ยฃ294.9 million, and free cash outflow was ยฃ92.6 million.
Strategically, ASOS has focused on enhancing product relevance, customer growth, and operational efficiency. Initiatives include scaling a faster, more reactive product model, relaunching the 4505 activewear label, and expanding ASOS Fulfilment Services (AFS). The company has also improved its app experience, introduced The Heart monthly edit, and deepened its relationship with Microsoft to leverage AI across various functions.
Operationally, ASOS has achieved sustained supply chain enhancements, reducing total supply chain cost to serve by 150 basis points. The company has also introduced a new returns policy with greater transparency, leading to a 160 basis points improvement in the underlying returns rate.
Looking ahead, ASOS expects GMV to show an improving trajectory, with gross margin improvement of at least 100 basis points and adjusted EBITDA in the range of ยฃ150-180 million. The company remains focused on its three core pillars: relevant fashion product, inspirational shopping experience, and efficient operating model, aiming to re-establish itself as a leading online fashion destination.
Here is the comparison of financials and debt year on year presented as an HTML table:
**Key Observations:** - **GMV and Revenue Decline:** Both GMV and adjusted group revenue decreased by 9% and 14% respectively, indicating a slowdown in sales.
- **Margin Improvement:** Adjusted gross margin improved by 330 basis points, reflecting better cost management and operational efficiency.
- **EBITDA and EBIT Growth:** Adjusted EBITDA and EBIT showed significant growth of 51% and 54% respectively, driven by cost control and operational improvements.
- **Reduced Loss:** Adjusted loss before tax decreased by 25%, showing progress towards profitability.
- **Increased Net Debt:** Net debt increased by ยฃ19.1 million, primarily due to non-cash interest effects.
- **Higher Free Cash Outflow:** Free cash outflow increased by ยฃ8.5 million, reflecting higher interest costs and normal H1 seasonality.