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ASOS has returned to quarterly GMV (gross merchandise value) growth following sequential improvement, while adjusted EBITDA rose by more than 25% in the year ending 30 August 2026.
Ahead of the publication of its FY26 results in November the online young fashion giant issued a trading statement this morning for the year ending 30 August 2026. The company said it expected earnings above the midpoint guidance £150m–£180m and gross margin above 50%. While it has returned to quarterly GMV growth the full-year GMV growth remained 5% lower and free cash flow was slightly negative as it continued to reinvest efficiency gains in marketing activity.
The Highlights
- Adjusted EBITDA increased by more than 25% and is expected to finish above the midpoint of ASOS’s £150m– £180m guidance range.
- Q4 GMV delivered low-single-digit growth, although full-year GMV declined 5%.
- Adjusted gross margin exceeded 50%, while year-end net debt fell to approximately £110m.
EBITDA moves into upper half of guidance
ASOS expects FY26 adjusted EBITDA to finish in the upper half of its £150m–£180m guidance range, placing the measure above £165m. The company did not provide a precise figure ahead of its full-year results release on 5 November.
The increase of more than 25% was supported by higher gross margin and a lower returns rate, with continued cost discipline also contributing. ASOS partly reinvested its operational efficiency gains, increasing its marketing-to-sales ratio by more than 100 basis points year on year.
This continues the improvement from FY25, when adjusted EBITDA rose to £131.6m from £80.1m. Adjusted gross margin reached more than 50% in FY26, compared with 47.1% in the previous year and above the company’s 48%–50% guidance range.
ASOS attributed the margin increase to improved sourcing and better full-price sell-through, alongside the continued expansion of its Flexible Fulfilment model.
GMV returns to growth in Q4
GMV growth improved during each quarter of FY26 and reached a low-single-digit rate in Q4. Full-year GMV still declined 5%, compared with a 12% fall in FY25.
The UK and Germany recorded positive GMV growth during the second half. The US returned to growth in Q4, while growth rates improved half on half across every geography.
Womenswear GMV increased 3% for the full year and accelerated to 8% in the second half. ASOS linked the performance to its Partner Brand portfolio and priority own brands including Topshop, Arrange and 4505.
ASOS CEO José Antonio Ramos Calamonte said: “Through consistent delivery over recent years, we have strengthened our balance sheet, materially improved profitability and reached an inflection point in our Q4 active customer base, driven by new customer acquisition.
“The business is demonstrating consistent delivery, and importantly, our recovery is broadening despite the macro backdrop. We have seen GMV growth across the UK and Germany in H2, growth in the US in Q4 and Womenswear in growth for the full year. Looking ahead, our focus remains on scaling the initiatives that are generating results today and building on this momentum as we continue towards our ambition of sustainable, profitable growth.”
ASOS ended the year with 16.4 million active customers, against 16.5 million at the end of the first half. However, total Q4 customers increased from Q3, marking the first quarterly growth since Q2 FY22. The UK and Germany also increased their active customer totals from the half-year point.
Fulfilment disposals reduce net debt
Net debt fell to approximately £110m at 30 August 2026 from £184.7m a year earlier. ASOS generated around £116m from selling its non-core Lichfield and Atlanta fulfilment centres, partly offset by slightly negative free cash flow.
The disposals are expected to produce combined annual cash savings of approximately £12m. ASOS completed the Atlanta fulfilment centre sale in July for around £48m in net proceeds, while the Lichfield transaction generated the remainder of the disposal inflow.
Supply-chain cost-to-serve improved by 130 basis points year on year, supported by renewed carrier contracts and further automation at the Berlin warehouse. ASOS also moved US fulfilment to Barnsley.
The retailer added around 30 net new Partner Brands during FY26. ASOS Fulfilment Services and Partner Fulfils increased by more than 10 percentage points to represent 21% of Partner Brands GMV.
More than 100 app enhancements were introduced during the year. Revenue-per-customer growth among shoppers exposed to the updated features ran around 10 percentage points ahead of the wider iOS customer base over the same period.
ASOS will provide full FY26 figures and further detail on its performance on 5 November 2026.
Law Roach and Dame Pat McGrath work on an ASOS shoot
ASOS has also been creating waves in the market of late with high profile appointments designed to excite its fashion-obsessed following. Super-stylist Law Roach, known for his with Hollywood star Zendaya, has been appointed as its first stylist in residence, while legendary make-up artist Dame Pat McGrath has been appointed Guest Beauty Curator and worked on a shoot to mark the return of ASOS magazine.