23 April 2026

ASOS Plc

Interim results for the 26 weeks to 1 March 2026

 

Transformation delivering fundamental improvement: 51% Growth in AEBITDA. FY guidance confirmed 

 

Summary financial results  

 

£m1	26 weeks to   1 March 2026 (H1 FY26)	26 weeks to   2 March 2025 (H1 FY25)	Change	Adjusted LFL change2
Headline adjusted numbers3
Gross Merchandise Value (GMV)4	1,170.1	1,277.4		(9%)
Adjusted group revenue	1,113.5	1,291.6		(14%)
Adjusted gross margin	48.5%	45.2%	330bps
Adjusted cost to serve5	43.0%	42.1%	(90bps)
Adjusted EBITDA	64.0	42.5	21.5
Adjusted EBIT	(18.3)	(39.6)	21.3
Adjusted loss before tax	(52.4)	(69.5)	17.1
Net debt	(294.9)	(275.8)	(19.1)
Free cash outflow	(92.6)	(84.1)	(8.5)
Statutory Measures
Group revenue	1,116.0	1,299.4	(14%)
Gross margin	48.6%	45.1%	350bps
Operating loss	(100.9)	(210.1)	109.2
Loss before tax	(137.9)	(241.5)	103.6

Financial highlights

·    GMV -9% YoY, with positive underlying trends: Early signs of topline improvement are building, with the UK outperforming the Group at ‑5% GMV YoY and Womenswear delivering a c.10ppts improvement in its GMV⁶ growth rate versus H2 FY25. This has been achieved through stronger product relevance, enhanced levels of marketing and new initiatives focused in priority categories.

·   Improved trajectory of customer growth: New customers, a strong lead indicator of topline growth, at c.+10% YoY in the UK. In our top four markets, new customer performance on a 6-month rolling basis has reached growth of +2% YoY for H1 FY26 compared to -12% YoY at the end of FY25, representing 13 consecutive months of improvement. Customer database trajectory is strengthening with churn reduced 150bps YoY in H1.

·   Continued gross margin gains: Adjusted gross margin improved +330bps YoY as we continued to reap the benefits from our new commercial model and successful scaling of our Flexible Fulfilment model to >20% of 3rd Party Brands GMV. Adjusted gross margin has seen YoY improvement for 8 consecutive quarters, with a total improvement of c.600bps over the last 3 years.

·   Sustained supply chain enhancements: Warehouse optimisation and the successful renegotiation of key logistics and carrier contracts delivered a 150bps YoY reduction in total supply chain cost to serve. The supply chain transformation of ASOS has resulted in a sustained reduction with supply chain cost to serve reducing by more than 500bps over the last 3 years.

·  AEBITDA growth of 51% YoY: Gross margin and cost management rigour, including the enhanced transparency of our returns policy and the supply chain efficiencies referenced above, all contributed to a 51% AEBITDA improvement and a further +30% YoY step-change in our profit per order.

·   Resilient execution in response to US tariffs: The profitability gains outlined above, were despite the introduction of additional US tariffs and duties just prior to the start of the period. The situation was well managed with swift mitigations enacted to protect service levels and customer experience in this core market. c.£7m of the tariffs recognised related to IEEPA in the period.

·    Free cash flow: Free cash outflow of £92.6m was in line with our expectations, reflecting higher interest costs due to no equivalent convertible bond interest due in H1 FY25, alongside our normal H1 seasonality.

·    Rigorous capital management: The Group has continued to reshape its debt, refinancing in November 2025. Subsequent to period-end, the Group repaid the Convertible Bonds due 2026 in full for cash consideration of £73.6m. During the period, net debt, excluding leases, increased by £19m YoY to £295m mainly due to non-cash interest effects.

 

Strategic and operational highlights

·    Relevant Fashion Product

o     Continued to scale a structurally faster, more reactive product model, with Test & React (T&R) growing +6ppts YoY.

o      Reactivated Own‑Brand activewear label 4505, achieving +20% GMV⁶ growth YoY, supported by new distinctive brand partnerships and strengthened our position in the highly attractive sportswear category.

o    ASOS Fulfilment Services (AFS) has continued to build momentum since its launch in H2 FY25, increasing its contribution to 3^rd party GMV by 9ppts HoH, with 9 brands adding increased choice and relevance for our customers.

o   Further evolution of our Partner Brand portfolio, onboarding c.60 new brands in H1, with c.40% contribution from our expanding Face + Body offerings.

 

·    Inspirational Shopping Experience

o    Delivered a step‑change in the ASOS app experience, shifting from transactional browsing to personalised, immersive and outfit‑led shopping via c.50 enhancements, leveraging on AI powered processes.

o      Initiatives launched toward the end of the period have started to translate into higher engagement and early sample results showing a c.9% uplift in net sales per customer and c.10% uplift in number of orders per customer.

o      Launched 'The Heart' - a monthly edit that showcases ASOS's best blend of Own Brands and Partner Brands, curated in a single, inspiring destination - which has delivered more than double the rate of sale versus our 'New In' product range.

 

·    Efficient Operating Model

o      Deepened our relationship with Microsoft as one of its top partners in UK Retail, scaling and embedding AI into core workflows across design, buying and customer care. We also achieved early success, utilising AI in our Studios, to enable the creation of more than 1,600 additional campaign assets.

o     Automation of our Berlin fulfilment centre is expected to return a c.10% cost saving, while also providing capacity to support future growth. Our renegotiation of carrier contracts improved supply chain cost to serve.

o    Introduced a new returns policy underpinned by greater transparency and customer education, delivering a +160bps YoY improvement in the underlying returns rate in H1.

o      Our logistics network has responded flexibly and mitigated recent cost pressures relating to the evolving situation in the Middle East, reflecting improved supply chain agility, increased near-shore supply and deepened relationships within our logistics network.

Outlook & current trading

·   Current trading is in line with expectations - GMV growth has shown further sequential improvement in Q3 to date, as KPIs continue to reflect the operational and commercial improvements delivered in H1.

·    New customer growth was +9% for the Group in March, the first month of growth since September 2021.

·   The Group has initiated the process to pursue refund claims in relation to the £7m IEEPA tariffs paid in H1 FY26.

·    We have taken proactive actions to help mitigate inflationary impacts and supply chain issues arising from the conflict in the Middle East. We continue to monitor developments closely and are continuously reviewing a range of levers to protect profitability whilst ensuring seasonally relevant product arrives to meet customer demand.

·    FY26 guidance unchanged:                

o  GMV to show an improving trajectory throughout the year, 3-4ppts ahead of revenue

o  Gross margin improvement of at least 100bps to 48-50%

o  Adjusted EBITDA of £150m-180m

o  Broadly neutral free cash flow

 

CEO Review

 

The first half of 2026 has seen significant progress and momentum for ASOS and I would like to thank our ASOSers for their commitment and energy during this period of delivery and transformation. We have achieved a lot. Together, we are taking decisive steps towards re-establishing ASOS as a leading online fashion destination. And even more exciting, there's a lot more to come.

 

Global destination for young fashion lovers

 

ASOS has the ambition to be the most inspirational destination for young fashion lovers on the planet. This ambition is built on three core pillars: our capacity to provide the most relevant product to our customers; providing the most inspirational shopping experience; and underpinning this with an efficient and flexible operational model. It is the combination of these three pillars that differentiates ASOS and will turn us into the reference of the online fashion market.

 

Our capability to deliver the most relevant product to our customers is built on a unique combination of ASOS-owned brands and the most relevant third-party brands, a proposition available only at ASOS. Our own brands are supported by a fast and agile T&R model, which can bring product to market in as little as three weeks. This enables us to respond quickly to emerging trends and offer the right product, at competitive prices and with consistent quality, reinforcing ASOS as a destination for fashion first customers. Alongside this, ASOS offers a broad and carefully curated selection of established and emerging brands from around the world, making us both a destination for leading brands and a platform for discovering new brands and new fashion.

 

This unparalleled assortment is the base for the most inspirational shopping experience in the world. A shopping experience built around outfits, personalisation and a distinct visual language. At ASOS we are convinced that fashion consumers prefer to see and buy items in the context of an outfit, rather than individual items. As a result, we focus on presenting our products in relevant outfit‑based contexts, tailored to individuals using our insight into customer preferences alongside our ability to identify emerging trends benefiting from our role as fashion creators. This ultra-personalised shopping experience is enabled by a decisive adoption of AI across different processes and activities in the organisation, from generation of content to personalisation algorithms. These personalised outfits are brought to life through a unique and widely recognised visual language that resonates strongly with young fashion customers. ASOS is the home of styling and stylists, and the perfect place to answer the eternal question, what should I wear tonight?

 

Underpinning all this is an efficient operational model focused on our ability to be competitive and to continuously reinvest in our customer proposition, as well as providing the flexibility and agility necessary to adapt to the ever-changing environment and to the growing demands of our customers.

 

The combination of these three capabilities makes ASOS a unique value proposition to our customers and positions ASOS at the forefront of transforming the online fashion experience, from transactional browsing to a more inspirational, intelligent and engaging way to shop.

 

The transformation of ASOS is happening

In 2022, we were aware that ASOS needed to undergo a major transformation and deliver structural change to achieve our ambitious vision. We put in place a comprehensive turnaround plan centred around three distinct phases. First, we focused on dealing with the most pressing issue; our stock and debt levels. Second, we focused on transforming our business model to ensure ASOS can deliver sustainably profitable growth, with a renewed emphasis on building healthier, more balanced relationships with our customers. This involved moving from a promotion-led model to one centred around excitement, with customers engaging with ASOS to discover something great rather than hunting for a bargain. With the fundamentals of our model fixed, our attention would switch to growth, and to regaining the hearts and minds of consumers.

Until recently, we have been focused on solving the first two steps of our journey. And as we shared in November 2025, we have significantly moved the dial on both fronts. The time has come to focus the organisation on the third step of our transformational journey. Over the course of H1 FY26, we have an expanding list of green shoots of growth and have delivered sequential improvement in our GMV trend in Q1, Q2 and Q3-to-date. This improving trend has followed a clear focus on the most significant parts of our business - Womenswear and UK. We have prioritised rebuilding our customer database, starting with the attraction and retention of new customers in our four core markets.

Financial review of H1 FY26; a solid evolution

 

Our financial performance during the first half demonstrated steady progress on topline as GMV sequentially improved to
-9% YoY and we saw evidence of strengthening trends across several priority areas of the business. Adjusted gross margin expanded by 330bps YoY to 48.5%, marking the eighth consecutive quarter of YoY adjusted gross margin improvement and a c.600bps expansion over 3 years, reflective of improved buying, a significant increase in full price sales mix, supply chain management enhancements and the scaling of our Flexible Fulfilment model.

 

Cost discipline remains critical, reflected by the 150bps YoY improvement made in our supply chain cost to serve and more than a 10% reduction in absolute fixed costs. The impact from operational deleverage of 200bps YoY, alongside the structural impact of our AFS model growth impacting cost-to-serve by 60bps, resulted in an increased total adjusted cost to serve of 90bps YoY. Adjusted EBITDA increased by 50% YoY to £64.0m (H1 2025: £42.5m) driven by strong commercial discipline and operational execution, and against significant increases delivered last year, having increased almost 14x over the last 3 years as the Group has delivered structural improvements in our model.

 

More detail can be found in the CFO Review.

 

 

Strategic Review: Time for growth at ASOS; the initial steps

 

Growth trajectory showing early signs of momentum in priority areas

 

We approached FY26 with a clear and structured plan to reignite growth, recognising that restoring topline momentum is a staged process that requires disciplined choices and a focused allocation of capital. This meant a targeted approach to delivering immediate shifts in performance as well as rebuilding our customer database for sustained long-term growth. We have focused on the incremental gains within our existing customer base through our improved product and experience, as well as rebuilding our customer base through targeted new customer acquisition. 

 

New customer growth was +2% YoY across our top four markets at the end of the period on a 6-month rolling basis, representing a material shift from the double‑digit declines seen as recently as H2 FY25. Contribution from new customers builds over time, so the return to growth of new customers is a positive lead indicator. Reactivated customers are also achieving growth across our top four markets, contributing positively to the churn rate reduction of 200bps YoY. As a result, the customer database across our top four markets is stabilising, declining just 2% versus FY25 year end. The rate of total database decline decelerated, improving by c.1ppt each month so far in FY26.

 

While many of the product and experience enhancements benefit the global customer, we have concentrated resources where ASOS has the strongest heritage and greatest ability to drive change at pace given our existing customer loyalty. This meant prioritising 1) our largest market, the UK; and 2) our largest category, Womenswear. Early outcomes on both areas provide confidence in this approach. This reinforces our belief that growth is being rebuilt through a coherent strategy, executed with intent, rather than isolated actions.

 

Womenswear, which is almost three-quarters of our Group GMV⁶, delivered a c.10ppts improvement in YoY growth from H2 FY25 to H1 FY26. This improvement reflects stronger customer acquisition supported by clearer product relevance and greater confidence at the point of purchase. Strength across our Womenswear Partner Brand portfolio has been particularly notable, with GMV⁶ +6% YoY, driven by consistently strong brand launches, more effective brand activations and improved availability in core Partner Brands, including those supported through AFS. Increased utilisation of T&R in Womenswear has supported in season relevance, sell-through and GMV⁶ growth of more than 25% YoY. We saw outstanding performances in Outerwear, Tops and Evening Dresses - all categories in which ASOS has traditionally demonstrated strong trend relevance and together delivered c.10% YoY GMV⁶ growth. This progress reinforces our conviction that the initiatives anchored in Womenswear, from T&R to The Heart, are working.

 

The UK remains our primary market and a key leading indicator for the Group, where many of our priority initiatives have landed. In H1, UK GMV outperformed the Group at -5% YoY, reflecting the benefits of sharper marketing, improved product relevance and a clearer, more engaging customer journey. Importantly, this focus has translated into greater stability in the customer base, which has remained broadly in line with the FY25 year end, while new customer growth has delivered c.10% YoY growth and churn has continued to reduce, 130bps YoY. We are confident that the actions taken in the UK are gaining traction, particularly in marketing, and provide a strong template for other markets over time.

 

We have implemented a very detailed set of initiatives on these focus areas to fuel growth in the first six months of the year, falling under our three Strategic Pillars: 1) Relevant Fashion Product; 2) Inspirational Shopping Experience; and 3) Efficient Operating Model.

 

 

Strategic Review: Our achievements across H1

RELEVANT FASHION PRODUCT: developing speed, quality and curation at scale

 

Product sits at the heart of our strategy. In H1, we doubled down on the areas we feel most directly influence customer engagement - strengthening the relevance and desirability of our product through speed and quality but also sharpening our fashion authority through more moments of curation across our Own Brand and Partner Brand products. Our focus has been on ensuring customers find product that feels right for the moment - better styled, better made, and easier to shop with confidence - all underpinned by a faster, more insightful model.

 

Own Brand driving relevance with pace

 

Speed and flexibility remain critical enablers of relevance. T&R grew +6ppts YoY as a proportion of our Own Brand sales, scaling towards our medium-term target of 30%, embedding a structurally faster approach that allows us to react in-season to what customers are buying and wearing. Notably, we added new categories, such as Tailoring, which has gained early traction, accounting for c.11% of T&R sales at the end of H1 FY26 and reinforced our reputation for quality in a technically demanding category. Our efforts to react fast to the market go beyond our T&R lines, and overall lead times have improved by more than 30 days YoY, supported by stronger supplier partnerships, improved data visibility and enhanced operational tooling. For customers, this means faster access to newness and greater confidence in product availability. 

 

The relaunch of our Own Brand activewear label, 4505, provides a clear example of how our T&R capability is delivering impact by enhancing product relevance. The brand relaunch has been popular with customers, with +20% YoY GMV⁶ growth, with our ability to react to demand signal and refining trend, colour and silhouette in season, adding to the success of the relaunch. Across our product offer, the ability to produce faster iterations improved product relevance across both Womenswear and Menswear and demonstrated how T&R translates speed and insight into commercial momentum.

 

Alongside speed, we have continued to raise the bar on Own Brand quality, focusing on fit, consistency and execution across the entire product journey. This has been underpinned by deeper supplier relationships, standardised fits, and increased quality‑control coverage across key sourcing regions. This work is fundamental to rebuilding customer trust and driving repeat behaviour, and we are already seeing early benefits, with returns linked to "doesn't fit me" and "poor quality/faulty" declining 80bps YoY.

 

The best portfolio of brands in the market

 

Our Partner Brand portfolio is a key source of differentiation, allowing us to curate the best outfits, pairing culturally relevant brands with our Own Brand product. We launched c.60 new brands, including IAM GIA, Ruched & Ready and Calzedonia, prioritising our core fashion-conscious female customer, as well as expanding our assortment in Menswear brands such as Ice Cream and True Religion. During H1, we have radically enhanced the onboarding process for Partner Brands, reducing integration time by up to 80%, supporting a more cohesive, fashion-led customer experience.

 

Exclusive collaborations continue to play an important role in strengthening relevance and authority across key categories. Our exclusivity agreements have more than doubled from 15 to 40 brands over the past two years, giving ASOS authority in key categories such as dresses and occasion wear. A standout example is our partnership with adidas, as the ASOS x adidas Drop 2 ranked among the most in‑demand launches on the platform in H1. Last week the third drop launched, deepening the partnership and offering unique pieces that customers cannot find anywhere else. Drop 3 is centred around outfit building, spotlighting our ability to push iconic sportswear into more expressive, contemporary territory through co-ords, outerwear and layering. The launch delivered a halo effect of more than 40% YoY in adjacent adidas product with a sell-through of more than 80%. In a partnership first, the drop was available both online and at adidas' London Oxford Street flagship store, marking a significant step in extending curated collaborations into physical retail. Another key milestone of this launch was making it available for consumers in the US for the first time, which contributed to 20% of sales, and 50% of customers who shopped in this launch were new or reactivated. We will continue this approach, launching further exclusive collaborations in H2, including Barbour. Our first to market partnerships with emerging brands, combined with regional exclusivity arrangements, ensure we remain highly relevant.

 

Additionally, we have worked hard to diversify our Partner Brand offering where the most pronounced shift has been increasing our mix into higher-end brands, onboarding more than 50 in the last 18 months, reflecting the broader shift in fashion we're seeing towards quality and brand storytelling.

 

Another relevant aspect is the scaling of our Flexible Fulfilment model to more than 20% of Third-Party Brand GMV, enabling broader, deeper assortments with improved availability and reduced inventory risk. Refinements to our Partner Fulfils (PF) operating model with key partners, such as Bestseller, where we now operate across 15 brands, have helped deliver double-digit full price growth for this business division in H1 YoY. Moreover, following its launch in H2 FY25, AFS has scaled rapidly, increasing its contribution to 3^rd Party GMV by 9ppts HoH. The model has been particularly successful with Inditex, where we have seen YoY sales growth and a shift to a predominantly full-price model. As such, we have deepened relationships with partners, through additional brand activations, including Oysho, as well as expanding internationally with brands such as House of CB.

 

These improvements across speed, quality and curation are translating into a materially better experience for customers with more relevant product, greater confidence at the point of purchase and stronger full-price appeal. Customers are responding to fresher newness, reflected in a record performance from our A/W 2025 range, delivering a YTD sell-through rate c.5ppts higher YoY for the Group. Rather than relying on discounting to stimulate demand, we are increasingly earning customer commitment upfront by getting the fashion, timing and curation right. This shift is evidence of a move towards building value through product desirability and trust, creating a more sustainable relationship with customers over time.

 

INSPIRATIONAL SHOPPING EXPERIENCE: from transactional browsing to confidence-led, immersive discovery

 

At ASOS we are determined to make online shopping the most inspirational experience a customer can have, and with the support of new technological developments we are sure the time to revolutionise online shopping has come. This transformation is built on a new way of positioning ASOS in front of our customers, a deliberate investment into a more inspiring app and the development of the most inspirational loyalty program in the industry. 

 

Reinvented Marketing

 

During H1, we adopted a more balanced and intentional approach to marketing as part of our strategy to reignite customer growth and strengthen brand relevance. Overall marketing investment increased by 50bps YoY as a percentage of sales, which included the increased use of performance marketing to support new customer acquisition.

 

We strengthened the effectiveness of our performance marketing through improved measurement, reducing cost per visit by more than 10% YoY in H1. Through a regular cadence of incrementality testing in the UK across our largest paid channel, we are seeing a material improvement in the effectiveness of our spend, with pay‑per‑click incrementality up c.20% versus our previous measurement. This improved efficiency is reinforced by the growing role of CRM, which converts demand more effectively once customers are acquired. Our contactable base continues to scale, increasing c.10% YoY, while maintaining stable engagement. The volume of personalised communications has increased four-fold with intent‑led triggers such as Back in Stock, Low in Stock and Price Drop alerts accounting for over two‑thirds of CRM contribution and delivering materially higher engagement than generic messaging. Together, this tighter integration between performance marketing and CRM is improving the quality of customer acquisition, increasing conversion and supporting sustainable, more efficient growth.

We stepped up brand-led marketing to reinforce ASOS's distinct fashion authority and raise awareness in key markets. This included a programme of high impact popups in locations such as Carnaby Street and Bloomsbury in London, New York and Aspen, alongside expanded out-of-home campaigns - particularly in the UK - to create a more consistent, 'always-on' brand presence. We now plan and execute our brand marketing activity through a coordinated, end‑to‑end calendar across all channels, structured around key product moments, maintaining consistency that positions ASOS as a destination for styling, with clear and aligned messaging on the very best product we have to offer.

This mix of performance and brand activity is designed to drive short-term engagement while building longer-term loyalty and consideration, supporting sustainable customer growth over time.

 

Sharper outfit curation

 

One of the clearest expressions of our fashion authority launched in H1, is 'The Heart', our monthly curated edit that brings together standout Own Brand and Partner Brand products in one inspiring destination. By combining style authority, quality, and value through distinctive visual storytelling, 'The Heart' makes it easier for customers to discover what makes ASOS unique. Our view that the power of curation and storytelling drives product discovery has been reinforced by 'The Heart's' outperformance versus our broader 'New In' range, delivering more than double the rate of sales. In a world where customers struggle with choice rather than access, our role is to inspire, not just to offer more.

 

Innovation at pace

 

With significant investment being made to enhance customer experience, we deliberately focused on concentrating efforts in our highest-value channel - the ASOS iOS app. We know that while customers browsing via the website often demonstrate strong purchase intent, those who browse through the app are significantly more likely to engage, convert and repeat, driving higher lifetime value, with new customers acquired via the app delivering nearly double the lifetime value of web customers.

 

During the period, we increased focus on app acquisition, deploying more targeted prompts across the web journey to encourage customers to download and shop via the app. This has resulted in a strong uplift in first-time app downloads, moving from double-digit YoY decline at the start of the period to more than 30% YoY growth by the end of the period, with clear month-on-month (MoM) sequential improvement. Importantly, engagement metrics are responding well - monthly active users (MAUs) have seen a stark recovery, delivering a c.30ppts improved trajectory from September 2025 through to March 2026. Daily active users (DAUs) are recovering faster than MAUs, with the return to YoY growth in March indicative of stronger habit-forming behaviour from our customers.

 

Starting in November 2025, we began a comprehensive reinvention of the ASOS app to re-engage customers at scale. The revamp is anchored around five core principles: immersive, personalised, outfit based, agentic shopping and community. Key enhancements included a refreshed homepage with a dedicated 'For You' feed tailored to individual style signals, one of the market's fastest 'Virtual Try On' to increase confidence at the point of purchase, and the ability to follow brands. Outfit based shopping is embedded throughout the journey via features such as 'Ways to Style' and 'saved looks', supported by richer imagery, autoplay video and gesture-led navigation. Deeper integration of community content has added a more social and inspirational dimension, shifting the experience from transactional browsing to confidence led discovery.

 

Execution pace is becoming a key advantage for us. YTD, we have rolled out c.50 app enhancements, supported by a rigorous test and learn engine within our digital product teams. The number of experiments conducted in FY26 so far have already exceeded that of FY25 by more than 10%, and we have reduced our average test duration by 50% YoY. While many of these enhancements were introduced towards the end of the period, early sample results are encouraging showing a c.9% uplift in net sales per customer, a c.10% uplift in number of orders per customer and higher engagement, with the DAU/MAU ratio up +60bps YoY by the end of the period. As a result of improved experience and engagement, our app ranking on the Apple Store has strengthened, improving by c.10 places since the start of January 2026, to rank within the top 40 UK shopping apps.

Loyalty as a further lever to deepen engagement and retention

 

ASOS.World was created around inspiration, offering our customers early access to some of our most in-demand product drops, including the Face + Body advent calendar, and the possibility to access exclusive and unique in-person events and even co-design product collections. For our highest-value, Tier 4 members, we delivered more than 15 exclusive in-real-life experiences in the last 12 months, building emotional loyalty and long-term advocacy.

 

Our loyalty programme continues to scale strongly across all launch markets. In the UK, membership has reached c.3.5m and a c.60% adoption rate, within 12 months of the programme's launch. Early international adoption across the US, Germany and Austria has been encouraging, with all geographies on track to exceed a 20% adoption rate by the end of FY26. Tier progression in the UK is tracking positively, with net c.3,000 customers upgrading daily. Our highest Tiers, 3 and 4, are performing particularly well with early indicators showing a net average customer value uplift of c.20% and c.9% respectively, alongside material increases in order frequency, up c.17% for Tier 3 and c.8% for Tier 4. Our most successful initiative to date has been the February 'Made by Members' campaign, reinforcing the power of loyalty, deeper co-creation, data-led design and speed to create more relevant, in-demand product. Each month, members vote on design elements such as print type, scale and tone, with the T&R team rapidly moving the winning concepts into production. The level of engagement from loyalty members, which was more than five times that of other campaigns, coupled with the strong sell-through rates, has resulted in us turning this into a monthly event.

 

EFFICIENT OPERATING MODEL: AI-enabled efficiencies and continued cost discipline

 

Over recent years, ASOS has made substantial progress in building a more efficient, resilient and scalable operating model. This has involved simplifying processes, improving execution and embedding greater discipline across supply chain, fulfilment and customer operations, creating a business that can provide enhanced customer service while delivering structurally stronger economics and unlocking the ability to reinvest into product, experience and marketing. Furthermore, these structural improvements give us the ability to respond quickly and effectively to the dynamic environment of the fashion industry, or to external shocks with minimal impact to customer experience or strategic momentum. Our ability to absorb these headwinds reflects the structural improvements already embedded in the operating model, including a more agile supply chain and diversified sourcing routes. While tariffs and geopolitical disruption remain external risks, their impact has been managed with discipline and control, reinforcing the strength and flexibility of the model we are now operating.

 

Execution on supply chain and returns continues to deliver

 

We sustained the positive momentum established in FY25, delivering further operational efficiencies across the Group. We took actions in the first half that will deliver annualised central cost efficiency gains of over 15%. The successful completion of the mothballing of the Atlanta site helped to reduce fixed costs more than 10% YoY. In addition, warehouse optimisation, together with the benefits of carrier contract renegotiation, reduced supply chain cost to serve by 150bps YoY and shortened time to market by more than 6 weeks, improving the seasonal relevance of our stock. As part of the continued transformation of our Berlin fulfilment centre, we introduced a new "pick from carton" process, transitioning from fully manual picking to smart automation. The new model is around three times faster and is expected to reduce productive labour costs at the site by c.£2.5m per annum, representing a c.10% saving, while also providing capacity to support future growth.

 

In December, we introduced an update to our returns policy which involved the launch of our returns transparency tool. Customers can view their personal return rate in the ASOS app, along with guidance and tips designed to help them make more informed purchasing decisions. This new policy has brought a 1ppt benefit to the underlying returns rate for each month it has been active with the overall H1 underlying rate improving by +160bps YoY. The financial impact on our unit economics has been material. The supply chain efficiencies and returns rate transparency, together with the gross margin improvement, ensured that we delivered a further increase in profit per order, +30% YoY.

 

AI as an accelerator of efficiency

 

A core enabler of making further improvements to our operating model, has been Artificial Intelligence (AI). We are leaning into its adoption in a deliberate, scalable and business‑embedded way with two clear priorities. First, we deploy AI to enhance the customer experience, making it more seamless, personalised and confidence-led. Second, we use AI to improve efficiency within the business, freeing up capacity to reinvest in product, experience and marketing.

 

AI is already enhancing how customers discover, engage with and receive services from ASOS. In customer care, we launched and rapidly scaled our AI Assistant across all markets, focusing on the highest volume customer journeys. The solution now supports 20 fully built intents, integrated with orders and returns to deliver faster, more personalised resolutions. Across 1.5m customer conversations handled, positive customer feedback exceeded 85%, up from c.50% in the legacy experience. Our cost per customer contact contained by the AI Assistant has been reduced by more than 90% and c.25% of refunds were automated. The start of H2 has seen automation scaled globally across missing returns, missing items, and to 100% of UK traffic, driving meaningful efficiency gains.

 

Alongside these customer first applications, we have focused on embedding AI into the core operating model to increase efficiency and scalability. Following the completion of a new strategic alliance with Microsoft in November - with whom ASOS is now one of the top UK retail partners - we materially accelerated AI adoption across the organisation. Access to advanced M365 Copilot expanded from c.12% to 90% of the workforce, placing AI directly into everyday tools and workflows. This has enabled teams to use ASOS data securely to support faster decision-making, improved insight and reduce manual effort. Adoption has scaled rapidly across functions, unlocking c.35,000 hours of productivity capacity in the first half of FY26, and creating tangible headroom to focus more time on customer-facing activity and commercial priorities.

 

Embedding AI into our commercial functions is already delivering impact. Today, AI is used to write more than 15% of our software and make c.20% of our buying decisions. We are innovating at pace, integrating AI into product design, buying and content creation processes. This has streamlined collaboration, leading to faster, more confident decision-making across the product critical path.

Crucially, these three examples provide a scalable blueprint for automation across the business. Aided by our strategic alliance with Microsoft we will unlock faster, more accurate resolutions and create the foundation for broader applications in other operational areas.

Looking ahead: Fuelling our growth

Driving sustainable growth on our structurally profitable base

 

As we move into the second half of FY26 and look to the medium term, our approach to growth remains deliberate and focused. We are building on the H1 structural progress and scaling the initiatives that are improving customer engagement and commercial performance. Our approach will remain the same, focused on accelerating momentum where we are already seeing traction; then replicating these learnings more broadly across the Group.

 

Our growth strategy is centred around a short-term focus on rebuilding the customer database, through stronger acquisition and improved retention. New customer performance has responded positively, but we know the new customer GMV contribution builds over time. Improved retention will be the second priority. Longer-term, our focus is to convert improved engagement, confidence and relevance into sustained repeat behaviour and, ultimately, GMV growth.

 

We have a similar short-term prioritisation of the UK, our core market, where ASOS is positioned as fashion for everyone and continues to act as the primary lead indicator for the Group. Furthermore, womenswear, our largest category and core customer base, remains central to this approach and we will prioritise relevance, breadth and inspiration to reinforce our leadership position.

Longer-term, as we extend these successes into other markets and categories, our approach is consistent in principle but nuanced in execution, adapting to reflect differences in customer behaviour, market maturity and brand awareness. In international markets, this means applying the same central principles of relevance, inspiration and confidence-led shopping, but targeting specific customer segments where ASOS has a clear right to win, rather than pursuing broad-based coverage. We are taking a global approach where relevant, but localised when needed. The US is a clear example of this in practice: we are focused on fashion-forward customer segments aligned to our strengths in trend, styling and inspiration. We will replicate this localised model and introduce to other territories over time. A similar approach applies by product category. We will lead in Womenswear, where ASOS has scale, authority and customer relevance. In Menswear, the focus remains more targeted as we rebuild momentum, emphasising functional fashion delivered with a clear styling edge rather than broad, generalist positioning. This disciplined focus allows us to deploy capital and capability where returns are highest while creating a repeatable model for future expansion.

 

Over the course of the next six months, we will continue going deeper in most of the actions we have been executing over the first half of the year. Nevertheless, there are four key areas where we plan to make additional effort.

 

Integration of AI to maximise our connected model

 

AI will play an increasingly important role, both as a customer-facing capability and as an enabler of scale as it is embedded through customer experience, marketing and product. Leveraging Microsoft's platform and tooling, we will deliver significant enhancements to our in-app AI Stylist, roll out AI-enabled content creation across the business and scale our AI capabilities across design, buying and software.

 

On the customer side, we will continue towards more personalised, conversational and agentic shopping experiences, allowing customers to discover, select and shop with greater confidence. Our focus is on making the AI Stylist more intelligent, personal and useful over time, with an improved understanding of each customer's preferences, behaviours and past interactions. This will allow the Stylist to retain context across sessions and provide more consistent, relevant guidance, helping customers discover outfits that feel right for them quickly and confidently. Longer-term, our ambition is for the AI Stylist to evolve into a trusted, always on companion within the app, supporting customers throughout their shopping journey while reinforcing ASOS's differentiation in confidence-led, personalised fashion shopping at scale.

 

We are transforming how we present product and deliver inspiration, setting up AI Studios. AI Studios uses generative AI alongside ASOS's styling expertise to create product imagery and content at scale such as model imagery, styled looks, video and contextual visuals. AI Studios has already been used to deliver a step‑change in content volume and variety, most notably during April's 'The Heart' campaign, where it enabled the creation of more than 1,600 additional assets that would have required c.9 extra shoot days using traditional methods. This capability is enhancing fashion storytelling at scale, allowing us to put fashion in a vast array of contexts and improving inspiration and product discovery for customers. Due to its success in delivering 95% of SKUs for 'The Heart' in April, we will be rolling this out more broadly across our Own Brand products which will ultimately provide customers with endless options to personalise and create outfits.

 

AI will continue to drive efficiency across the operating model, improving decision quality, speed and flexibility, allowing us to reinvest into product, inspiration and marketing. We are consolidating our core ERP onto Microsoft Dynamics, bringing fashion and non-fashion buying, inventory and financial processes onto a single, integrated platform. The platform will create a more productive environment for buyers and merchandisers through agents that remove repetitive tasks, while upgrading our financial ledger to an AI-supported, largely no-touch period end processes. These changes will improve decision-making speed and accuracy, strengthen operational control and release capacity across the business, supporting a more efficient operating model that can scale alongside growth.

 

A superior shopping experience

 

The ASOS app will remain the primary engine for improving customer experience, engagement and growth. Building on the step‑change delivered in H1, we will accelerate the rollout of features that deepen personalisation, strengthen outfit‑based discovery, leverage agentic commerce and build stronger connections through community. This includes scaling our Virtual Try‑On capability beyond individual items to full outfits and across a significantly larger share of our inventory, helping customers visualise looks more confidently at the point of purchase. We are also embedding user‑generated content more deeply throughout the app experience, from the homepage through to product detail pages, bringing real people and real styles into discovery and inspiration. This community‑led content will be increasingly shoppable, enabling customers to move more seamlessly from inspiration to purchase. Alongside this, we will continue to enhance the app's core experience through the implementation of a dedicated notifications centre to support timely and relevant engagement and a more visual, streamlined onboarding journey that accelerates discovery from day one. As community participation and engagement scale, we expect this to create a richer, more dynamic shopping experience, reinforcing the app as a destination for inspiration as well as conversion.

 

Aligning with how our customers want to shop is crucial for delivering growth. As such, we are trialling an extension to the UK Next Day Delivery cut-off from 10pm to 11pm to better match peak engagement times and provide greater flexibility. Early tests have indicated more than a £10m net revenue impact per annum alongside a variable contribution benefit.

 

Similarly, we are scaling Exchanges in the UK as a more convenient and intuitive alternative to traditional returns, benefiting customers by helping them secure the right item more quickly, while enabling ASOS to retain demand and improve customer satisfaction. Historically, only c.1-3% of customers who returned an item went on to purchase a replacement, resulting in lost sales. Since introducing exchanges, c.9-11% of returned items are now exchanged instead, with c.80% of customers keeping the exchanged product. We have seen good results so far, influencing our plans to ramp up Exchanges across categories and countries, with an expected impact of c.1% retained gross GMV⁶ annually.

 

Doubling down on our new marketing model

 

Marketing and brand will play a more significant role to support customer growth as we move from testing and foundation-building of our new approach in H1 to scaled execution in H2. Our marketing activity will be structured to drive both near-term demand and longer-term brand strength. We are backing this with increased investment, leveraging a broader channel mix and introducing our new 'Brand Book'. 

 

On driving short-term demand, we have developed a more reactive, trend-led approach that responds quickly to product launches and emerging fashion moments. On strengthening long-term brand building, we have planned a programme of seasonal, high impact campaigns, working with new talent to position ASOS as a more compelling fashion destination. We have already tested both approaches through our recent Style Each Moment campaign in April, with encouraging early results from both the seasonal campaign model and more agile, on trend activity.

 

The most relevant product always at the heart of our proposition

 

Product execution will remain a core differentiator, with continued focus on speed, quality and outfit-curation to drive relevance, confidence and growth. We will further expand T&R and Speed-to-Market, scaling T&R towards our c.30% medium-term target. Further expansion of Flexible Fulfilment and new Partner Brands being onboarded will improve availability, broaden choice and reduce inventory risk. Exclusivity will continue to be a key enabler of how we differentiate our product and reinforce our ability to curate relevant, outfit-led product moments at scale. As a result, this has led to a new upcoming collaboration with Barbour, further drops with adidas, and new Flexible Fulfilment partnerships with Levi's and ON across the UK and Europe, as well as an exclusive Partner Fulfils brand, NA‑KD.

Underpinning this faster execution is a deep and sustained focus on sizing, quality and fit, which is critical to earning trust, driving repeat behaviour and building full price performance. We are increasing the proportion of Own Brand styles built on ASOS-owned sizing blocks to c.65% in Womenswear and c.90% in Menswear. This represents a material shift from previous years, allowing us to control fit and grading more centrally rather than relying on supplier-led variation. Greater block ownership improves fit consistency across categories, supports clearer size communication for customers and helps reduce fit related returns over time. Other initiatives will include introducing AI-driven fit summaries on applicable product pages, rolling out targeted Menswear fit guides and launching 'My Size Profile' for Womenswear across Own Brand and Partner Brand jeans to help standardise fit. Together, these initiatives ensure that greater speed and relevance are matched by consistency and execution, supporting full price performance, lower returns and stronger long-term customer engagement.

Our approach reflects a clear and disciplined plan for the next phase of our transformation. By continuing to build on areas of strength, scaling what is already working and leveraging our structural improvements, we are well positioned to deliver sustained progress through H2 FY26 and into the medium term.

 

Current trading and guidance

 

We have seen continued positive momentum since the start of H2 across several parts of the Group. GMV growth rate is sequentially improved compared to H1 FY26, our Womenswear business has entered positive growth YoY and new customers are up c.9% YoY for the Group in March. In April, our monthly edit from 'The Heart' has performed very well and our most recent adidas collaboration, drop 3, has been the most successful to date.

 

We reiterate our FY26 guidance, reflecting continued confidence in the strategic and operational progress made to date. We remain on track to deliver adjusted EBITDA in the range of £150-180m, supported by ongoing gross margin expansion, strong cost control, and a continued focus on profitable sales. We expect gross margin to improve by at least 100bps YoY, with GMV growth continuing to improve through H2 as we build on the momentum seen in the first half. Free cash flow is expected to be broadly neutral for the full year, underpinned by improved inventory efficiency, disciplined capex spend and a leaner operating model.

 

 

    Notes:

1.   Numbers throughout this section are subject to rounding.

2.   Like-for-like (LFL) GMV and adjusted revenue are adjusted for the impact of foreign exchange translation (constant currency sales) and adjusting items.

3.   The alternative performance measures used by ASOS are explained, defined and reconciled to statutory measures in the Alternative Performance Measures note at the end of the financial statements.

4.   Gross Merchandise Value (GMV) defined as adjusted retail sales plus revenue attributable to Flexible Fulfilment partners, net of returns and excluding sales tax - used throughout this section unless otherwise indicated.

5.   Adjusted cost to serve defined as operating costs (excluding depreciation, amortisation, impairments and adjusting items) as a percentage of adjusted revenue. 

6.   GMV excluding tax on a billed basis.

Investor and analyst meeting

The group will be hosting an in-person presentation for analysts at 9.30am at ASOS HQ, Greater London House, NW1 7FB. A live webcast will also be available, and a recording of the presentation will be uploaded to the ASOS investor relations website afterwards.

A recording of this webcast will be available on the ASOS Plc investor centre website after the event: https://www.asosplc.com/investor-relations/

 

For further information

Investors:
Phil Clark, Head of Investor Relations Hannah Alderman, Investor Relations Manager	Email: [email protected]
Media:
Jonathan Sibun / Will Palfreyman, Teneo	Tel: 020 7353 4200

 

Background note

Founded in 2000, ASOS has 17m active customers in over 100 markets. We bring fashion lovers around the world the best and most relevant fashion through our unique own brands including ASOS DESIGN, ARRANGE, COLLUSION, Topshop, and Topman, styled with the most exciting products from local and global partner brands. With our expert in-house design team and agile and flexible commercial model, including ASOS Fulfilment Services, Partner Fulfils, and Test & React, we make the latest trends accessible to all and give customers the confidence to be whoever they want to be.

Forward looking statements

This announcement may include statements that are, or may be deemed to be, "forward-looking statements" (including words such as "believe", "expect", "estimate", "intend", "anticipate" and words of similar meaning). By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances, and actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect management's view with respect to future events as at the date of this announcement. Save as required by applicable law, ASOS plc undertakes no obligation to publicly revise any forward-looking statements in this announcement, whether following any change in its expectations or to reflect events or circumstances after the date of this announcement.

 

Financial review

 

Headline

ASOS's financial performance in H1 FY26 reflects another step change on our transformation journey. We refinanced the Group's £150m term loan to further reduce our interest exposure and created more liquidity headroom through the addition of an £87.5m delayed draw term loan (DDTL), which remains undrawn. We strengthened our underlying business model through significant gross margin enhancements, whilst partially mitigating the revenue deleveraging effect through continued efficiencies in our underlying cost to serve. This continued discipline created fuel to reinvest back into additional marketing, facilitating the shift into the final stage of our transformation - delivering growth - where we have seen sequential quarterly improvements in our trajectory since exiting FY25.

 

Summary Financials

Revenue or GMV growth figures are expressed on a like-for-like (LFL) basis unless otherwise indicated.^1,2

	26 weeks to 1 March 2026
£m	UK	EU	US	Rest of World	Total reported	Adjusting items3	Total adjusted
Retail sales4	500.1	340.8	101.1	77.4	1,019.4	(0.3)	1,019.1
Income from other services5	55.9	30.0	7.5	3.2	96.6	(2.2)	94.4
Total revenue	556.0	370.8	108.6	80.6	1,116.0	(2.5)	1,113.5
Cost of sales					(573.1)	-	(573.1)
Gross profit					542.9	(2.5)	540.4
Distribution expenses					(115.0)	-	(115.0)
Administrative expenses					(375.5)	11.4	(364.1)
Other income					1.0	1.7	2.7
EBITDA					53.4	10.6	64.0
Depreciation, amortisation and impairments					(154.3)	72.0	(82.3)
Operating loss					(100.9)	82.6	(18.3)
Finance income					1.4	-	1.4
Finance expense					(38.4)	2.9	(35.5)
Loss before tax					(137.9)	85.5	(52.4)

 

During the 26 weeks to 1 March 2026 (the period), the Group realised an adjusted loss before tax of £52.4m, and an adjusted EBITDA of £64.0m, representing a £21.5m improvement YoY. The uplift reflects the benefits of the new commercial model and efficiencies across our cost base, particularly within the supply chain network. Reported EBITDA of £53.4m also improved significantly versus last year. The reported loss before tax of £137.9m primarily reflects a non‑cash impairment of existing technology assets recognised following the Group's decision to replatform its ERP system onto Microsoft Dynamics to support the ongoing development of its technology estate.

 

GMV was £1,170.1m for the period, reflecting a 9% decline YoY. The rate of decline has improved sequentially in each quarter showing clear progress versus the FY25 exit rate. Combined with this, our YoY customer base trajectory has improved significantly - particularly in our core markets. New customer acquisition is growing YoY in these markets, along with ongoing advances in churn, and together these trends point to a customer base that is positioned well to drive continued improvement going into H2.

 

Total revenue has reduced by 14% YoY, 5ppts less than GMV, as the mix continues to shift toward flexible fulfilment models, where ASOS recognises commission‑only revenue rather than gross sales. The resulting impact is a structural reduction in reported top‑line revenue and improvement in gross margin rate. In the case of our AFS model, the variable cost to serve remain with ASOS, resulting in a structural increase in our cost to serve %. The expansion of our flexible fulfilment offer generates a net improvement in our EBITDA performance, increasing product availability and breadth for customers whilst creating additional flexibility and reduced inventory risk.

 

Across the first half of the year, we have continued to benefit from our improved operating model and range assortment, facilitating a healthier stock position and supporting improved margin. We have also expanded our flexible fulfilment models, increasing availability of high-demand product while enabling a more efficient inventory position.

By scaling availability without carrying the associated stock-holding costs, this model has delivered meaningful margin benefits. Together, these dynamics have contributed to an adjusted gross margin of 48.5%, an improvement of 330bps YoY.

 

Adjusted cost‑to‑serve increased by 90bps in H1 FY26. The primary drivers were revenue deleveraging, which contributed 200bps, alongside the structural impact of our AFS model growth impacting cost-to-serve by 60bps. Underlying cost efficiencies of 220bps across the cost base facilitated the increase in our marketing investment of 50bps YoY. Underlying improvements reflected reduced return rates, supported by greater customer transparency, together with continued efficiencies across the supply chain network. The distribution carrier contracts renegotiated in FY25 have also lowered our distribution cost base, with benefits continuing into FY26. In addition, the closure of the US warehouse removed a sizeable portion of operating costs and improved assortment breadth and availability for US customers, supporting both the proposition and margin.

 

Combined with wider fixed cost‑base efficiencies delivered through the period, these actions have further strengthened our profitability, with adjusted EBITDA margin reaching 5.7% (up 240bps YoY) after absorbing £7m of IEEPA‑related tariffs in the half.

 

Adjusting items in the half were £85.5m, including £67.3m relating to the non-cash technology asset impairment referenced above and £7.7m of fees incurred in relation to the refinancing of the Group's term loan facilities in November 2025. The remaining balance comprised restructuring costs associated with implementing a leaner and more efficient cost base, together with a number of smaller items, partly offset by a £16.3m release of dilapidations provisions.

 

GMV

All the KPIs below, apart from adjusted revenue, now include the Flexible Fulfilment models, given their increasing scale, and hence comparatives are restated. LFL are adjusted for the impact of foreign exchange translation and adjusting items. For more detail, please refer to the Alternative Performance Measures (APMs) note at the end of the financial statements.

 

	26 weeks to 1 March 2026	26 weeks to 2 March 2025	Change
GMV (£m)6	1,170.1	1,277.4	(9%)
Adjusted revenue (£m)	1,113.5	1,291.6	(14%)
Active customers (m)7	16.5	18.2	(9%)
Average basket value (£)8	44.43	43.32	3%
Average basket value LFL (£)9	44.26	43.32	2%
Average order frequency10	3.29	3.42	(4%)
Total shipped orders (m)11	26.3	29.5	(11%)
Total visits (m)12	943.7	994.9	(5%)
Conversion13	2.8%	3.0%	(20bps)

 

GMV declined by 9%² YoY, reflective of our opening customer database that was 14% lower than last year. We have focused on progressive improvements in both the customer database and resulting GMV, and experienced a strengthening quarterly trajectory through the half. This momentum has been supported by improved trends in Womenswear, where a targeted focus on this priority category has driven a c.10ppts improvement in growth versus H2 FY25. The customer database is also showing signs of stabilisation, supported by growth in new customer acquisition in key markets and retention improving as churn rates continue to fall. ABV continues to improve, supported primarily by lower returns rates. GMV performance in the first half is 5ppts better than adjusted revenue (guided 3-4ppts for the full year) due to the scaling of the AFS model implemented towards the end of FY25.

 

Within GMV, underlying return rates have improved by 160bps YoY for the period, supported by the Group's ongoing focus on size and fit enhancements and the launch in early 2026 of a new transparency initiative, which allows customers to monitor their own return rate and make more informed purchasing decisions. This was further supported by actions taken last year, which have continued to deliver benefits into the current period.

The ongoing expansion of our flexible fulfilment models continues to meaningfully strengthen the customer offering. These models now represent more than 20% of third-party GMV, 14ppts ahead of the same period LY, marking a material step up in operational scale and an increase in the number of live territories. Their growth is contributing to improved product availability and supports a stronger gross margin, reinforcing the strategic value of this channel within the overall GMV mix.

 

Improvements in customer metrics - including stronger retention and lower churn - reflect the benefits of a more engaging shopping experience, better product offering and improved fulfilment capability in a competitive market. The actions taken are already supporting a positive shift in trajectory, and the business remains focused on delivering compelling fashion product, a more inspiring customer experience, and a more efficient operating model through improved availability, fulfilment and engagement. Together, this provides a strong foundation for continued improvement in GMV performance in H2 and beyond.

 

Performance by market

United Kingdom

 

	26 weeks to 1 March 2026
GMV	-5%
Total revenue	-12% (-12% LFL)
Visits	-3%
Orders	-8%
Conversion	-20bps
ABV	+3% (+3% LFL)
Active customers	6.5m (-5%)

 

UK sales performance continues to strengthen - outperforming the Group - with the YoY decline at 5%, ahead of the FY25 exit rate. The continued improvement in our core market reflects targeted customer activity in H1, including increased marketing investment, and provides an important lead indicator of how our strengthened customer proposition can support further progress in the UK and across international markets. The improvement in trajectory is despite a weakening in conversion, reflecting the deliberate focus on attracting higher volumes of new customers, which supports our customer acquisition drive to underpin future sales growth.

 

The active customer base remains at 6.5m, broadly in line with the FY25 year end. This has been supported by improved retention and engagement which indicates that the proposition is resonating with customers and positions the business well as it moves into H2.

 

Europe

 

	26 weeks to 1 March 2026
GMV	-11%
Total revenue	-14% (-16% LFL)
Visits	-7%
Orders	-12%
Conversion	-10bps
ABV	+4% (+1% LFL)
Active customers	7.4m (-12%)

 

GMV declined by 11% YoY, reflecting lower traffic and conversion over the period. Traffic trends began to improve towards the end of H1, supported by increased levels of customer acquisition. This was particularly evident in our core markets of Germany and France, both of which delivered YoY new customer growth in Q2, providing early signs of recovery in the region.

 

Profitability in EU remains ahead of last year, supported by continued benefits from actions taken in the prior year to reduce the incidence of unprofitable orders, supplemented by distribution carrier rate benefits and structural gross margin improvements. These measures have supported margin performance, with profit per order increasing across all EU markets in H1, when compared with the same period last year.

United States

 

	26 weeks to 1 March 2026
GMV	-12%
Total revenue	-18% (-15% LFL)
Visits	+5%
Orders	-18%
Conversion	-40bps
ABV	+3% (+8% LFL)
Active customers	1.6m (-10%)

 

US GMV declined 12% YoY, reflecting the FY25 exit position on our customer database of -21% YoY. With a modest absolute decline in the customer database during the half, following targeted marketing activity and improved customer acquisition, the active customer database closed H1 at -10% YoY. Traffic to site improved, with customer demand continuing to support higher average basket values and profitability. The market was affected by wide spread volatility and, in particular, the introduction of IEEPA tariffs which caused fulfilment disruption early in the half and impacted profit by £7m in HY26. Actions have been taken to balance profitability impacts following the increased tariff and duty costs, including pricing adjustments which retain our competitive position to facilitate future growth.

 

The US remains a key strategic market for the Group and continues to be one of our most profitable regions. This is supported by a strong profit per order, reinforcing the long‑term attractiveness of the market despite near‑term volatility.

 

Rest of World

 

	26 weeks to 1 March 2026
GMV	-15%
Total revenue	-20% (-17% LFL)
Visits	-11%
Orders	-18%
Conversion	-10bps
ABV	flat (+4% LFL)
Active customers	1.0m (-20%)

 

Rest Of World GMV declined by 15%, remaining consistent with the run‑rate exiting last year. Performance in this region remains softer than our key markets, reflecting our intentional focus on prioritising the strategic territories that deliver the greatest impact. Despite lower sales, profitability across ROW remains strong with profit per order improving YoY, underlining the resilient economics of these markets.

 

There is a defined set of initiatives underway aimed at improving the trajectory in future periods - including targeted customer activation, enhanced localised trading approaches, and selective investment to support long‑term growth in these markets.

 

Gross margin

 

Adjusted gross margin increased across the period by 330bps YoY to 48.5% reflecting the continued benefits of our improved commercial model. Key drivers included improved stock governance and lifecycle management, alongside enhanced buying margins, supporting a more profitable product mix and higher product selling margins. This has also been supported by our ongoing transition toward flexible fulfilment models (AFS and PF), which deliver clear commercial advantages by removing the need to hold inventory, reducing markdown exposure and increasing flexibility. The structural margin benefit arises from the commission‑based nature of these models.

 

The impact of the additional IEEPA tariffs, approximately £7m in the period among wider US-related impacts, has been actively managed through a series of targeted mitigating actions, reducing the effect on gross margin. These actions are focused on protecting our ability to price competitively in the US market, ensuring we remain well positioned for long‑term, sustainable growth.

Reported gross margin was 48.6%, up 350bps YoY; the YoY uplift being attributable to the same drivers as adjusted gross margin.

 

Operating expenses

 

Adjusted cost to serve (excluding D&A) increased by 90bps to 43.0% in H1 FY26. This movement includes a 200bps impact from deleveraging on the lower revenue base, in addition to an increase of 60bps from the structural increase in cost to serve from the growth in our flexible fulfilment propositions. Excluding these impacts, underlying adjusted cost to serve reduced by 170bps YoY, within which marketing spend increased by 50bps as the Group shifted focus towards investing for growth. The absolute fixed cost base reduced by 12% YoY, primarily reflecting the FY25 mothballing of the Atlanta warehouse, which removed a sizeable portion of overhead costs, alongside further efficiency actions across the wider operating cost base. The variable costs within our supply chain network continued to benefit from a leaner and more efficient operating model, as well as material cost savings through distribution carrier contract renegotiations.

 

The efficiency actions across our cost base delivered material savings, moderating inflationary pressures and creating additional fuel to reinvest in marketing activity, helping to drive customer acquisition and an improving sales trajectory.

 

£m	26 weeks to 1 March 2026	% of revenue14	26 weeks to  2 March 2025	% of revenue14	Change in £ Value
Distribution costs	(115.0)	(10.3%)	(138.8)	(10.7%)	17%
Warehousing	(105.0)	(9.4%)	(135.8)	(10.5%)	23%
Marketing	(82.3)	(7.4%)	(89.3)	(6.9%)	8%
Other operating costs	(176.8)	(15.9%)	(180.3)	(14.0%)	2%
Adj. cost to serve (excl. D&A)	(479.1)	(43.0%)	(544.2)	(42.1%)	12%
Adj. depreciation and amortisation and impairments	(82.3)	(7.4%)	(82.1)	(6.4%)	-
Adj. operating costs	(561.4)	(50.4%)	(626.3)	(48.5%)	10%
Adjusting items within operating costs	(83.4)	(7.5%)	(186.7)	(14.4%)	55%
Total operating costs	(644.8)	(57.8%)	(813.0)	(62.6%)	21%

 

Distribution costs improved by 40bps as a percentage of revenue versus the same period last year, reflecting the continued realisation of benefits from the carrier contract renegotiations completed in FY25. These rate improvements more than offset the increased fulfilment costs associated with routing US orders through the UK, a consequence of the US site closure last year.

 

Warehouse cost to serve improved by 110bps YoY, with fixed cost benefits largely driven by the closure of the US fulfilment centre and the associated savings. Variable CTS also improved, supported by continued efficiency gains across the remaining network - including better labour utilisation, process optimisation and tighter operational controls - which more than offset underlying inflationary pressures. In addition, a review of expected restoration costs for mothballed sites resulted in a reduction to the dilapidations provision of £3.9m.

 

Marketing costs as a percentage of revenue increased relative to the equivalent period last year by 50bps, reflecting a deliberate decision to re-invest efficiencies generated back into customer engagement. This additional investment was targeted at accelerating new‑customer acquisition, strengthening visibility across key digital and out-of-home channels, and driving more first‑time shoppers to the site in support of the broader growth agenda.

 

Other operating costs decreased by £3.5m versus the same period last year, reflecting continued discipline in the management of central overheads. This reduction was primarily driven by tighter control of indirect spend and efficiencies across key support functions. The improvement was further supported by a 2% reduction in staff costs across the half, reflecting actions to structurally reset the cost base and strengthen operational efficiency. We enter H2 with a leaner central cost base, including 16% fewer heads vs last year.

Depreciation and amortisation costs (excluding adjusting items) were broadly flat YoY reflecting continued capital investment and associated depreciation and amortisation charges.

 

Interest

 

Finance expense (excluding adjusting items) was £35.5m, an increase of £2.5m from H1 FY25, mainly reflecting the absence of capitalised interest following the mothballing of the Atlanta warehouse. On a cash basis, interest paid increased by £20.1m versus H1 FY25 primarily driven by the £13.9m coupon payment on the 2028 convertible bond, which did not occur in the prior period as the first coupon fell due in H2 FY25. The remainder reflects payment timing under the previous term loan, which was refinanced in December 2025.

 

Taxation

 

The reported effective tax rate is 4.8% based on the reported loss before tax of £137.9m. This is lower than the H1 FY25 effective tax rate of 17.7% primarily due to the effect of higher unrecognised deferred tax expense in the current period.

 

Earnings per share

 

Both basic and diluted loss per share were 109.9p (H1 FY25: basic and diluted loss per share of 166.8p). The lower loss per share is mainly due to lower loss after tax for the period of £131.3m (H1 FY25: £198.8m). The calculation of diluted loss per share excludes the impact of potential ordinary shares as it is anti-dilutive given the Group incurred a loss during the period.

 

Free cash flow

 

£m	26 weeks to 1 March 2026	26 weeks to 2 March 2025
AEBITDA	64.0	42.5
Share-based payments and other non-cash items included in AEBITDA	(2.7)	(1.7)
Cash impacting operating adjusting items	(18.5)	(12.2)
Income tax paid	(0.2)	-
Decrease in inventory (excl. swo)15	32.0	103.2
Increase in other working capital16	(86.6)	(148.8)
Operating cash flow	(12.0)	(17.0)
Purchase of property, plant & equipment and intangible assets	(40.8)	(47.4)
Payment of lease liabilities (principal)	(14.5)	(13.7)
Interest received	1.4	3.6
Interest paid	(29.7)	(9.6)
Dividends received from associates	3.0	-
Free cash flow	(92.6)	(84.1)
Proceeds from sale of investments	-	135.0
Net repayment of borrowings	(6.5)	(210.7)
Cash impacting financing adjusting items17	(9.9)	(10.5)
Cash flow	(109.0)	(170.3)

 

Throughout the first 26 weeks of FY26, there was a free cash outflow¹⁸ of £92.6m, which was in line with expectations given the seasonal nature of our cashflow structure. The YoY movement was primarily driven by higher financing payments in FY26, with interest payments increasing by c.£20m YoY, due to no equivalent convertible bond interest payments being due in H1 FY25.

 

Operating cash flow improved over the previous period, benefiting primarily from higher AEBITDA, reflecting the underlying improvement in profitability, partially offset by one‑off increases in adjusting items. Movements in overall working capital were broadly neutral, with the annualisation of a larger stock reduction last year being offset with the positive impact of smaller reduction in stock creditors.

 

After financing activities, there was a net cash outflow of £109.0m, driven by £6.5m of debt repayment and £9.9m of adjusting items, relating to refinancing fees.

 

Net debt, refinancing and liquidity

 

£m	As at 1 March 2026	As at 2 March 2025
Convertible bond (fair value of debt component)	350.4	336.7
Term loan, including accrued interest	149.0	153.3
Nordstrom loan	-	6.5
Other short-term borrowings	5.0	-
Borrowings	504.4	496.5
Cash and cash equivalents	(209.5)	(220.7)
Net debt (excluding lease liabilities)	294.9	275.8

 

Excluding lease liabilities, net debt increased to £294.9m, an increase of £19.1m YoY. The movement mainly reflects the non‑cash interest accretion on the convertible bond. Cash and cash equivalents were £209.5m at the end of the period, a £11.2m reduction YoY, primarily as a result of the fees associated with the refinancing in December 2025.

 

As announced in November 2025, the Group refinanced its term loan facilities with a syndicate of private lenders. On the effective date in December 2025, the existing £150.0m term loan was repaid and the associated Bantry Bay revolving credit and accordion facilities were terminated, and replaced with a £150.0m senior term loan and an £87.5m Delayed Draw Term Loan (DDTL) facility, both maturing in November 2030. The DDTL was undrawn at the end of H1 FY26. The refinancing provides materially improved financial terms, including additional liquidity headroom, enhanced financial flexibility through the extended maturity, and a c.£5m LFL reduction in annual cash interest costs compared with the previous facility. 

 

 

 

Aaron Izzard

Chief Financial Officer

23 April 2026

 

Notes

1.   Numbers throughout this section are subject to rounding.

2.   Like-for-like ('LFL') revenue or GMV are adjusted for the impact of foreign exchange translation and adjusting items.

3.   The adjusting items are explained in note 3 of the financial statements. Reconciliations between statutory measures and their associated Alternative Performance Measures (APMs) can be found at the end of the financial statements.

4.   Retail sales are internet sales recorded net of an appropriate deduction for actual and expected returns, relevant vouchers, discounts and sales taxes.

5.   Income from other services comprises of delivery receipt payments, marketing services, commission on sales through Flexible Fulfilment models, revenue from wholesale sales, and jobber income.

6.   GMV is adjusted retail sales plus revenue attributable to Flexible Fulfilment partners, net of returns and excluding sales tax. The growth rate is on a LFL basis. YoY growth rate prior to LFL adjustment is (8%).

7.   Active customers defined as having shopped in the last 12 financial months. These include the Flexible Fulfilment unique active customers.

8.   Average basket value is defined as GMV divided by total shipped orders.

9.   Average basket value LFL is calculated as LFL GMV divided by total shipped orders.

10. Average order frequency is calculated as total shipped orders in the last 12 financial months divided by active customers.

11. Total shipped orders are the combined total of Asos and Flexible Fulfilment orders.

12. Restated visits for H1 FY25, previously reported number 984.1m.

13. Conversion is calculated as total shipped orders divided by total visits.

14. As a percentage of adjusted revenue for all lines other than Total operating costs which is expressed as a percentage of reported revenue. 

15. H1 FY25 decrease in inventory is excluding £5.4m of stock-write-offs associated with our Driving Change agenda as announced in the ASOS Plc Annual Report and Accounts 2024. The impact on inventory is £nil in H1 FY26.

16. Includes working capital movements associated with adjusting items; a breakdown is included in the APMs section at the end of the financial statements.

17. Financing adjusting items relate to refinancing costs as announced in November 2025.

18. Free cash flow is net cash generated from operating activities, after cash capital expenditure, lease and interest payments, and cash flows from associates.

Consolidated Income Statement

for the 26 weeks to 1 March 2026

 

		26 weeks to 1 March 2026			26 weeks to 2 March 2025
	Note	Adjusted	Adjusting items (Note 3)	Total	Adjusted	Adjusting items (Note 3)	Total
		£m	£m	£m	£m	£m	£m
Revenue	4	1,113.5	2.5	1,116.0	1,291.6	7.8	1,299.4
Cost of sales		(573.1)	-	(573.1)	(707.4)	(5.4)	(712.8)
Gross profit		540.4	2.5	542.9	584.2	2.4	586.6
Distribution expenses		(115.0)	-	(115.0)	(138.8)	-	(138.8)
Administrative expenses		(446.4)	(83.4)	(529.8)	(487.5)	(186.7)	(674.2)
Other income		2.7	(1.7)	1.0	2.5	13.8	16.3
Operating loss		(18.3)	(82.6)	(100.9)	(39.6)	(170.5)	(210.1)
Finance income	6	1.4	-	1.4	3.1	-	3.1
Finance expenses	6	(35.5)	(2.9)	(38.4)	(33.0)	(1.5)	(34.5)
Loss before tax		(52.4)	(85.5)	(137.9)	(69.5)	(172.0)	(241.5)
Income tax (charge)/credit	7	(9.9)	16.5	6.6	13.3	29.4	42.7
Loss for the period		(62.3)	(69.0)	(131.3)	(56.2)	(142.6)	(198.8)
Loss per share			pence per share			pence per share
Basic and diluted	8			(109.9)			(166.8)

 

All activities in the current and prior period are continuing.

 

The notes on page 27 to 47 form an integral part of these condensed consolidated interim financial statements.

 

 

Consolidated Statement of Comprehensive Income

for the 26 weeks to 1 March 2026

 

	26 weeks to 1 March 2026	26 weeks to 2 March 2025
	£m	£m
Loss for the period	(131.3)	(198.8)
Items that will not be reclassified subsequently to profit or loss
Net fair value gains on cash flow hedges	0.1	3.0
Tax on items that will not be reclassified	-	(1.3)
	0.1	1.7
Items that may be reclassified subsequently to profit or loss
Net translation movements	(0.5)	0.2
Net fair value gains on cash flow hedges	0.1	8.2
Fair value movements reclassified from cash flow hedge reserve to profit or loss	1.9	(8.0)
Tax on items that may be reclassified	(1.0)	(0.1)
	0.5	0.3
Other comprehensive income for the period	0.6	2.0
Total comprehensive loss for the period	(130.7)	(196.8)

 

The notes on page 27 to 47 form an integral part of these condensed consolidated interim financial statements.

Consolidated Balance Sheet

as at 1 March 2026

 

		1 March 2026	31 August 2025	2 March 2025
	Note	£m	£m	£m
Non-current assets
Goodwill and other intangible assets	9	387.7	473.6	492.4
Property, plant and equipment	10	142.0	153.4	168.2
Right-of-use assets	11	163.3	172.1	180.2
Investment properties		5.9	6.2	6.6
Investments in associates	12	41.9	44.9	46.3
Trade and other receivables		0.9	1.8	2.9
Derivative financial assets		0.1	0.1	0.5
Deferred tax assets		51.5	44.7	104.7
		793.3	896.8	1,001.8
Current assets
Inventories		370.3	402.3	411.7
Trade and other receivables		49.7	49.2	63.7
Derivative financial assets		3.1	1.2	10.4
Cash and cash equivalents		209.5	318.9	220.7
Current tax assets		4.2	3.7	7.8
		636.8	775.3	714.3
Current liabilities
Trade and other payables	14	(536.5)	(619.3)	(546.7)
Borrowings	15	(93.4)	(96.4)	(18.5)
Lease liabilities	11	(27.6)	(27.5)	(26.4)
Derivative financial liabilities		(4.6)	(9.8)	(4.3)
Provisions	16	(5.0)	(4.4)	(4.9)
Current tax liabilities		-	-	(4.5)
		(667.1)	(757.4)	(605.3)
Net current (liabilities)/assets		(30.3)	17.9	109.0
Non-current liabilities
Borrowings	15	(411.0)	(407.2)	(478.0)
Lease liabilities	11	(197.0)	(197.0)	(208.9)
Derivative financial liabilities		(0.2)	(0.3)	(0.2)
Provisions	16	(69.6)	(97.8)	(102.9)
		(677.8)	(702.3)	(790.0)
Net assets		85.2	212.4	320.8
Equity attributable to owners of the parent
Called up share capital		4.2	4.2	4.2
Share premium		322.6	322.6	322.6
Other reserves		6.1	3.6	14.3
Accumulated losses		(247.7)	(118.0)	(20.3)
Total equity		85.2	212.4	320.8

 

The notes on page 27 to 47 form an integral part of these condensed consolidated interim financial statements.

 

These unaudited condensed consolidated interim financial statements for the 26 weeks to 1 March 2026 were approved by the Board of Directors and authorised for issue on 23 April 2026 and were signed on its behalf by:

 

 

José Antonio Ramos Calamonte                                     Aaron Izzard

Chief Executive Officer                                                     Chief Financial Officer

Consolidated Statement of Changes in Equity

for the 26 weeks to 1 March 2026

 

	Called up share capital	Share premium	Other reserves	Accumulated losses	Total equity
	£m	£m	£m	£m	£m
As at 1 September 2025	4.2	322.6	3.6	(118.0)	212.4
Loss for the period	-	-	-	(131.3)	(131.3)
Other comprehensive income for the period	-	-	0.6	-	0.6
Total comprehensive income/(loss) for the period	-	-	0.6	(131.3)	(130.7)
Cash flow hedges gains and losses transferred to non-financial assets	-	-	1.9	-	1.9
Share-based payments charge	-	-	-	1.8	1.8
Tax relating to share incentive schemes	-	-	-	(0.2)	(0.2)
Balance as at 1 March 2026	4.2	322.6	6.1	(247.7)	85.2
As at 2 September 2024	4.2	322.6	61.9	132.6	521.3
Loss for the period	-	-	-	(198.8)	(198.8)
Other comprehensive income for the period	-	-	2.0	-	2.0
Total comprehensive income/(loss) for the period	-	-	2.0	(198.8)	(196.8)
Cash flow hedges gains and losses transferred to non-financial assets	-	-	0.6	-	0.6
Share-based payments charge	-	-	-	2.6	2.6
Repurchase and refinance of convertible bond	-	-	(50.2)	43.3	(6.9)
Balance as at 2 March 2025	4.2	322.6	14.3	(20.3)	320.8

 

Accumulated losses includes the share-based payments reserve and the employee benefit trust reserve.

 

 

Consolidated Cash Flow Statement

for the 26 weeks to 1 March 2026

 

	26 weeks to 1 March 2026	26 weeks to 2 March 2025
	£m	£m
Cash flows from operating activities
Operating loss	(100.9)	(210.1)
Adjusted for:
Depreciation of property, plant and equipment, right-of-use assets and investment properties	24.7	26.2
Amortisation of other intangible assets	57.0	57.8
Impairment charges on non-financial assets	72.7	142.5
Share-based payments charge (net of amounts capitalised)	1.6	2.1
Share of associate's net profit	-	(1.3)
Gain on disposal of brands	-	(13.8)
Loss/(gain) on refinancing	7.7	(2.6)
Other non-cash items	(2.6)	(2.5)
Decrease in inventories	32.0	108.6
Decrease/(increase) in trade and other receivables	(0.5)	(10.8)
Decrease in trade and other payables	(82.6)	(127.0)
(Decrease)/increase in provisions	(20.9)	13.9
Cash used in operating activities	(11.8)	(17.0)
Net income tax paid	(0.2)	-
Net cash used in operating activities	(12.0)	(17.0)
Cash flows from investing activities
Purchase of other intangible assets	(38.5)	(42.0)
Proceeds from sale of brands	-	135.0
Purchase of property, plant and equipment	(2.3)	(5.4)
Dividends received from associates	3.0	-
Interest received	1.4	3.6
Net cash (used in)/generated from investing activities	(36.4)	91.2
Cash flows from financing activities
Drawdown of borrowings	150.0	-
Repayment of borrowings	(156.5)	(63.3)
Repurchase of convertible bond	-	(147.4)
Refinancing fees paid	(9.9)	(10.5)
Repayment of principal portion of lease liabilities	(14.5)	(13.7)
Interest paid	(29.7)	(9.6)
Net cash used in financing activities	(60.6)	(244.5)
Net decrease in cash and cash equivalents	(109.0)	(170.3)
Opening cash and cash equivalents	318.9	391.0
Effect of exchange rates on cash and cash equivalents	(0.4)	-
Closing cash and cash equivalents	209.5	220.7

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

for the 26 weeks to 1 March 2026

 

1     General information

ASOS Plc (the Company) and its subsidiaries (together, the Group) is a global fashion retailer. The Company is a public limited company whose shares are publicly traded on the London Stock Exchange. The Company is incorporated and domiciled in the UK and the address of its registered office is Greater London House, Hampstead Road, London NW1 7FB.

 

The financial period represents the 26 weeks to 1 March 2026 (comparative financial period: 26 weeks to 2 March 2025, and prior financial year: 52 weeks to 31 August 2025). The financial information comprises the results of the Company and its subsidiaries.

 

2     Material accounting policies, judgements and estimates

2.1   Basis of preparation

The condensed interim financial statements for the 26 weeks to 1 March 2026 have been prepared in accordance with UK-adopted IAS 34 Interim Financial Reporting and with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. The condensed interim financial statements should be read in conjunction with the Group's Annual Report and Accounts for the 52 weeks to 31 August 2025, which was prepared in accordance with UK-adopted International Financial Reporting Standards (IFRS) and with the requirements of the Companies Act 2006 and applicable Listing rules.

 

The condensed interim financial statements are unaudited but have been reviewed by the auditors. The financial information presented herein does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The Group's Annual Report and Accounts for the 52 weeks to 31 August 2025 have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

 

The condensed interim financial statements have been prepared on the historical cost basis of accounting, excluding derivative financial instruments which are held at fair value. The condensed interim financial statements are presented in Sterling and all values are rounded to the nearest hundred thousand pounds (£0.1m), except where otherwise indicated.

 

2.2   Going concern

The Directors are satisfied that the Group has sufficient resources to continue in operation for a period of at least 12 months from the date of approval of the financial statements, and therefore continue to adopt the going concern basis in preparing the financial statements. To support this assessment, detailed cash flow forecasts were prepared for the 18-month period to August 2027.

 

In assessing the Group's going concern position, the Directors have considered the Group's detailed budgeting and forecasting process which reflects the Group's financial performance, position, and cash flows over the going concern period (the base case). These cash flow forecasts represent the Directors' best estimate of trading performance and cost implications in the market based on current agreements, market experience and consumer demand expectations. In conjunction with this, the Directors considered the Group's business activities and Principal risks, reviewing the Group's cash flows, liquidity positions and borrowing facilities for the going concern period.

 

At 1 March 2026, the Group had £73.6m of convertible bonds maturing in April 2026, £253.0m of convertible bonds maturing in September 2028, a £150.0m fully drawn term loan and an associated £87.5m undrawn and available delayed draw term loan (DDTL) with a syndicate of private lenders which matures in November 2030.

 

The group is subject to a minimum cash and cash equivalents threshold of at least £20m. Other covenants have been considered throughout the assessment, but do not impact on the availability of the facility throughout the assessment period.

 

Key assumptions - forecasting business cash flows

The assessment of the Group's going concern position required significant management judgement, including in determining the key assumptions that have the greatest impact on forecasts of future business performance and the range of reasonably possible outcomes of those assumptions. The economic environment has remained challenging with cost of living pressures continuing to impact customer spending and sentiment. The future impact that the economic environment will have on ASOS performance however is uncertain, so for the purposes of the Group's going concern assessment, the Directors have therefore made assumptions on the likely future cash flows in the uncertain macro environment.

 

The assumptions considered include the continuation of our improved order economics, as well as a sustained marginal recovery in the macro trading environment, with the online fashion market assumed to experience low-single-digit % growth on an aggregated basis across the Group's key territories. The base case assumes sequential improvement in the YoY sales trajectory throughout the remainder of the assessment from the FY26 H1 exit rate, through the adoption of the new commercial model and continued improvements to the Group's customer proposition. The resulting growth rates highlight modest positive YoY growth in the first half of the assessment building towards mid-single-digit YoY growth by the end of the 18-month window. Improvements in adjusted gross margin are included of at least 100bps vs FY25 to 48% to 50%.

 

Aligned to the Group's principal risks, the Directors have also considered various severe but plausible downside scenarios against the base case, comprising of the following assumptions:

 

·      Sales growth reduction;

·      Gross margin reduction; and

·      Potential working capital cash impacts.

 

The downside scenarios are considered across both H2 FY26 and FY27, with the greater degree of assumption-based improvements and subsequent volatility in the outer periods commanding more severe downside sensitivities. Sensitivities mapped against the base case within the downside case are highlighted below:

 

Downside vs base case	H2 FY26	H1 FY27	H2 FY27
Sales	(10%)	(15%)	(23%)
Gross Margin	(110bps)	(70bps)	(80bps)
Working Capital impact (average)	£(62m)	£(87m)	£(85m)

 

Should the Group see such significant events unfold it has several mitigating actions it can implement to manage its liquidity risk, such as deferring capital investment spend, deferring or reducing stock intake, and implementing further cost management to maintain a sufficient level of liquidity headroom during the going concern period. The combined impact of the above downside scenarios and mitigations offers suitable headroom during the going concern period.

 

Reverse stress tests have also been performed on both the Group's revenue and gross margin. The tests under consideration hold all metrics in line with the downside case highlighted above, analysing how far the stress metric would need to decline against the base case to cause a liquidity event. Such results would have to see over a 25% decline in sales over the base case or an aggregate decline in gross margin rate from the base case of over 400bps across the entire assessment period. Both are considered remote based on results of previous significant economic events and recent trading performance, particularly given the significant progress made during FY25 and in the first half of FY26 across our strategic priorities.

 

Based on the above, the Directors have concluded that, on the basis of there being liquidity headroom under both the base case and downside scenarios, and the consideration that the reverse stress test scenario is remote, it is appropriate to adopt the going concern basis of accounting in the preparation of the Group's annual financial statements, with no material uncertainty to disclose.

 

2.3   Changes in accounting policies

The condensed interim financial statements have been prepared in accordance with the accounting policies set out in the Group's Annual Report and Accounts for the 52 weeks to 31 August 2025. The Group has considered the following amendments to published standards that are effective for the financial period beginning 1 September 2025 and concluded that they are either not relevant to the Group or do not have a material impact on the Group's financial statements:

 

·      Amendments to IAS 21 - Lack of Exchangeability.

 

2.4   Alternative Performance Measures (APMs)

In the reporting of financial information, the Directors use various APMs. These APMs should be considered in addition to, and are not intended to be a substitute for, IFRS measurements. As they are not defined by International Financial Reporting Standards, they may not be directly comparable with other companies' APMs.

 

The Directors believe that these APMs provide additional useful information for understanding the financial performance and health of the Group. They are also used to enhance the comparability of information between reporting periods (such as adjusted profit) by adjusting for non-recurring or uncontrollable factors which affect IFRS measures, to aid users in understanding the Group's performance. Consequently, APMs are used by the Directors and management for performance analysis, planning, reporting and incentive setting purposes.

 

The income statement shows the adjusting items with a more detailed analysis set out in Note 3. Other APMs that the Group has focused on in the year are defined and reconciled in the APMs section. All of the APMs relate to the current period's results and comparative periods.

 

2.5   Critical accounting judgements and key sources of estimation uncertainty

The preparation of the condensed interim financial statements requires the use of judgements, estimates and assumptions in applying the Group's accounting policies to determine the reported amounts of assets, liabilities, income and expenses.

 

Estimates and judgements are continually reviewed and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the current circumstances. Actual results may differ from these estimates. Any revisions to accounting estimates are applied prospectively.

 

The critical accounting judgements and key sources of estimation uncertainty remain consistent with those presented in Note 2.7 of the Group's Annual Report and Accounts for the 52 weeks to 31 August 2025.

3     Adjusting items

Income statement

	Revenue	Cost of sales	Administrative expenses	Other income	Finance expenses	Total before tax	Tax	Total
26 weeks to 1 March 2026	£m	£m	£m	£m	£m	£m	£m	£m
Commercial operating model change	2.5	-	(0.7)	-	-	1.8	(0.4)	1.4
Property-related costs	-	-	9.7	-	(2.9)	6.8	(1.3)	5.5
Other strategic initiatives	-	-	(90.1)	-	-	(90.1)	22.4	(67.7)
Amortisation of acquisition intangibles	-	-	(2.3)	(1.7)	-	(4.0)	0.6	(3.4)
Unrecognised deferred tax assets	-	-	-	-	-	-	(4.8)	(4.8)
	2.5	-	(83.4)	(1.7)	(2.9)	(85.5)	16.5	(69.0)
	Revenue	Cost of sales	Administrative expenses	Other income	Finance expenses	Total before tax	Tax	Total
26 weeks to 2 March 2025	£m	£m	£m	£m	£m	£m	£m	£m
Commercial operating model change	7.8	(5.4)	(0.7)	-	-	1.7	(0.4)	1.3
Property-related costs	-	-	(178.1)	-	(1.5)	(179.6)	39.6	(140.0)
Other strategic initiatives	-	-	(5.8)	13.8	-	8.0	(2.0)	6.0
Amortisation of acquisition intangibles	-	-	(2.1)	-	-	(2.1)	0.5	(1.6)
Unrecognised deferred tax assets	-	-	-	-	-	-	(8.3)	(8.3)
	7.8	(5.4)	(186.7)	13.8	(1.5)	(172.0)	29.4	(142.6)

 

Cash flow statement

	26 weeks to 1 March 2026	26 weeks to 2 March 2025
	£m	£m
Commercial operating model change	1.6	6.2
Property-related costs	(7.8)	(8.7)
Other strategic initiatives	(12.3)	(9.7)
Total adjusting items within operating cash flows	(18.5)	(12.2)

 

Of the net cash outflow in the current year, £2.8m relates to net expenditure incurred in the prior year.

 

Commercial operating model

In 2023, the Group implemented a new commercial operating model, with the transition resulting in cumulative inventory write‑downs of £228.0m across 2023 and 2024 as legacy stock was cleared. The Group is now fully operating under the new model, with current‑year movements reflecting the final clearance of this legacy inventory.

Property-related costs

In the prior period, the Group announced its intention to vacate the Atlanta fulfilment centre following the completion of the site's automation project. During the period, the Group completed the process to vacate and mothball the facility. Additional costs of £3.4m have been incurred during the period relating to the mothballing process (26 weeks to 2 March 2025: £177.3m).

 

	26 weeks to 1 March 2026	26 weeks to 2 March 2025
	£m	£m
Atlanta fulfilment centre
Impairment of property, plant and equipment	-	(108.8)
Impairment of intangible assets	-	(6.6)
Impairment of right-of-use assets	-	(26.4)
Non-capitalised asset spend	-	(17.1)
Onerous occupancy costs	-	(15.3)
Other costs to vacate (a)	(3.4)	(3.1)
	(3.4)	(177.3)
Other property-related costs
Impairment of right-of-use assets (b)	(2.5)	-
Change in dilapidation cost estimates (c)	16.3	-
Other costs (d)	(3.6)	(2.3)
Total property-related costs	6.8	(179.6)

a)   Includes costs associated with vacating sites during the period, such as severance, supplier termination and stock transfers.

b)   An impairment charge was recognised on right-of-use assets related to office spaces vacated during the period.

c)   Change in dilapidation cost estimates for vacant leased sites, resulting in a reduction of £20.2m to the dilapidations provision. This decrease reflects a comprehensive review of expected remediation costs for mothballed sites in Atlanta and Lichfield, incorporating current market rates and more detailed assessments of required works. As the related right-of-use assets for these sites were fully impaired in prior periods, the reduction in the provision is recognised in profit or loss within administrative expenses, of which £16.3m is presented as an adjusting item and £3.9m within adjusted results, in line with the historical classification of the related costs.

d)   Ongoing expenditure incurred on vacant leased sites, including lease interest, onerous occupancy provision unwind and business rates.

 

Other strategic initiatives

	26 weeks to 1 March 2026	26 weeks to 2 March 2025
	£m	£m
Restructuring (a)	(10.0)	(7.7)
Refinancing (b)	(7.7)	2.6
Impairment of legacy technology assets (c)	(67.3)	-
Disposal of brands	-	13.8
Other (d)	(5.1)	(0.7)
	(90.1)	8.0

a)   Restructuring costs of £10.0m were recognised during the period, reflecting the Group's programme to simplify the organisation and improve operational efficiency. These costs relate to the realignment of key functions to support the delivery of the Group's strategy.

b)   During the period, the Group launched a refinancing exercise of its debt facilities with Bantry Bay Capital. The associated debt extinguishment and transaction fees incurred resulted in a net loss of £7.7m to administrative expenses. Refer to Note 15 for further information.

c)   An impairment charge was recognised in relation to legacy technology assets following the Group's decision to transition its ERP platform to Microsoft Dynamics 365. This reflects the write‑down of capitalised software development that will no longer be utilised under the future technology roadmap. The impairment is non‑cash and relates solely to historical investment in systems that are being replaced as part of the Group's broader modernisation of its technology platforms.

d)   Included within Other is a charge relating to ongoing legal proceedings in an overseas territory. The Group has previously reported a contingent liability in relation to this matter. Following constructive engagement with the claimants, management has estimated the potential cost of settlement.

Amortisation of acquired intangible assets

The amortisation of acquired intangible assets is adjusted for as the acquisition that the amortisation relates to was outside business-as-usual operations for ASOS. These assets would not normally be recognised outside of a business combination, therefore the associated amortisation is adjusted.

 

Additionally included is £1.7m representing the Group's share of the associate's post-tax results attributable to the amortisation of acquired intangible assets.

 

Unrecognised deferred tax assets

Deferred tax assets of £27.4m were not recognised in the period and were instead recognised in the income statement. Of the amounts not recognised, £4.8m was attributed to adjusting items. Further information is included in Note 7.

 

Critical accounting judgements - Identification of adjusting items

In order to provide shareholders with additional insight into the period-on-period performance of the business, an adjusted measure of profit is provided to supplement the reported IFRS numbers, and reflects how the business measures performance internally. Adjusting items are those which are significant in amount, either individually or in aggregate, and arise from events or transactions that are not in the ordinary course of business, and are therefore excluded from adjusted profit measures to provide clearer comparability between periods.

 

The assessment of whether to adjust certain items requires judgement, and covers the nature of the item, the cause of its occurrence and the scale of impact of that item on reported performance and individual financial statement line items, as well as consistency with prior periods. The same assessment is applied consistently to any reversals of prior adjusting items. Adjusted profit before tax is not an IFRS measure and therefore not directly comparable to other companies.

 

4     Revenue

 

	26 weeks to 1 March 2026	26 weeks to 2 March 2025
	£m	£m
Retail sales	1,019.4	1,227.8
Premier subscription revenue	7.4	9.0
Commission, marketing and other services1	57.7	24.1
Delivery receipts	27.7	28.9
Wholesale revenue	3.8	9.6
Total revenue	1,116.0	1,299.4
1 Commission, marketing and other services includes jobber income.

 

5     Segmental analysis

IFRS 8 Operating Segments requires operating segments to be identified on the basis of internal reporting on components of the Group that are regularly reviewed by the Chief Operating Decision-Maker to allocate resources to the segments and to assess their performance.

 

The Chief Operating Decision-Maker has been determined to be the Management Committee. It is the Management Committee that reviews the Group's internal reporting in order to assess performance and allocate resources across the business. In doing so, the Management Committee reviews performance across the Group via a number of sources, comprising regular monthly management accounts, and ad hoc analysis that provides deep dives into different areas, including territory, brands and revenue streams.

 

In determining the Group's operating segments, management has considered the level of information which is regularly reviewed by the Management Committee. Information regularly reviewed by the Management Committee is at a consolidated Group level only, with some disaggregated revenue information and associated metrics provided for the geographical territories of the UK, the US, Europe and the Rest of the World. However, decisions on resource allocation are not made based on this information. Such decisions are made on ad hoc analysis, separately provided to the Management Committee, and does not constitute information that is either regularly provided to, nor reviewed by, the Management Committee. As a result, it has been concluded that the Group has only one operating segment (the Group level).

 

The following sets out the Group's revenue in the key geographic markets in which customers are located:

 

	26 weeks to 1 March 2026
	UK	EU	US	Rest of World	Total
	£m	£m	£m	£m	£m
Retail sales	500.1	340.8	101.1	77.4	1,019.4
Revenue from other services	55.9	30.0	7.5	3.2	96.6
Total revenue	556.0	370.8	108.6	80.6	1,116.0
Cost of sales					(573.1)
Gross profit					542.9
Distribution expenses					(115.0)
Administrative expenses					(529.8)
Other income					1.0
Operating loss					(100.9)
Finance income					1.4
Finance expenses					(38.4)
Loss before tax					(137.9)
Non-current assets1	591.9	148.9	0.9	-	741.7
	26 weeks to 2 March 2025
	UK	EU	US	Rest of World	Total
	£m	£m	£m	£m	£m
Retail sales	598.5	414.4	120.1	94.8	1,227.8
Revenue from other services	36.7	15.4	13.0	6.5	71.6
Total revenue	635.2	429.8	133.1	101.3	1,299.4
Cost of sales					(712.8)
Gross profit					586.6
Distribution expenses					(138.8)
Administrative expenses					(674.2)
Other income					16.3
Operating loss					(210.1)
Finance income					3.1
Finance expenses					(34.5)
Loss before tax					(241.5)
Non-current assets (at 2 March 2025)1	722.4	166.4	7.8	-	896.6
Non-current assets (at 31 August 2025)1	693.0	154.9	4.1	-	852.0
1 Excludes derivative financial assets and deferred tax assets.

6     Finance income and expenses

 

	26 weeks to 1 March 2026	26 weeks to 2 March 2025
	£m	£m
Finance income
Interest on deposits	1.4	3.1
Finance expenses
Interest on borrowings	(33.0)	(32.7)
Interest on leases	(3.3)	(3.0)
Provisions - unwind of discount	(2.1)	(1.8)
Interest capitalised	-	3.0
Total finance expenses	(38.4)	(34.5)
Net finance expense	(37.0)	(31.4)

 

7     Taxation

 

	26 weeks to 1 March 2026	26 weeks to 2 March 2025
	£m	£m
Current period UK tax	0.1	-
Current period overseas tax	0.8	0.6
Adjustment in respect of prior period corporation tax	0.1	(0.2)
Total current tax charge	1.0	0.4
Origination and reversal of temporary differences	(34.5)	(54.7)
Unrecognised deferred tax assets	27.4	12.1
Adjustment in respect of prior periods	(0.5)	(0.5)
Total deferred tax credit	(7.6)	(43.1)
Total income tax credit in income statement	(6.6)	(42.7)
Analysed as:
Tax on adjusted loss/(credit)	9.9	(13.3)
Tax on adjusting items	(16.5)	(29.4)
Total income tax credit in income statement	(6.6)	(42.7)
Effective tax rate	4.8%	17.7%

 

Income tax is recognised using management's estimate of the weighted average effective annual income tax rates for corporate and deferred taxes expected for the full financial year, including stock provision adjustments but excluding all other adjusting items (refer to Note 3 for adjusting items), prior period adjustments, share-based payments and derivatives, which are recognised on an actuals basis. The estimated average annual tax rate used for the 26 weeks to 1 March 2026 is 23.2% (26 weeks to 2 March 2025: 22.9%).

 

The reported effective tax rate is 4.8% based on the reported loss before tax of £137.9m.

 

Pillar two disclosures

FY26 is the second year that ASOS falls within the Pillar Two income taxes legislation. Under this legislation, the parent company is required to pay, in the UK, top-up tax on profits of its subsidiaries and any UK profits that are taxed at an effective tax rate below 15%. This legislation is not anticipated to have a material impact on the financial position of the Group, as the jurisdictions in which the Group operate, including the UK, apply tax rates above 15%.

 

For the 26 weeks to 1 March 2026, the transitional safe harbour provisions apply, and no top-up taxes have arisen. The Group continues to assess the impact of the Pillar Two income taxes legislation on its future financial performance, and has not recognised any deferred tax assets or liabilities related to Pillar Two income taxes, in accordance with the temporary exception issued by the IASB in May 2023.

Key sources of estimation uncertainty - Recognition of deferred tax assets                                           

In accordance with IAS 12 Income Taxes, the Company recognises deferred tax assets to the extent that it is probable that future taxable profit will be available, against which the deductible temporary differences and the carry-forward of unused tax losses can be utilised. In line therefore with the judgements and estimates disclosed with going concern (refer Note 2.2) and impairment of non-financial assets (refer Note 13), the recognition of deferred tax assets requires the Group to make significant estimates about the future profitability of its operations.

 

In determining the amount of deferred tax assets recognised, management makes estimates of future taxable profits and the likelihood of their being recovered within a reasonably foreseeable timeframe, being a minimum of five years, aligned to the Group's strategic planning process. In making these estimates, management considers the current and projected financial performance of the Group, including profit margins, revenue growth, and cost management strategies, which are derived from management forecasts and consistent with those used as part of the Group's going concern and impairment assessments. Risk adjustments are then applied, with a greater adjustment applied to periods where there is less evidence of profits, in particular, those further in the future. The Group also considers the timing and amount of deductible temporary differences. As at 1 March 2026, the Group has net deferred tax assets of £205.9m (31 August 2025: £171.6m), of which £51.5m (31 August 2025: £44.7m) have been recognised. Deferred tax assets relating to temporary differences and unused tax losses of £617.4m (£154.4m tax effected) (31 August 2025: £126.9m tax effected) have not been recognised.

 

The deferred tax assets have no expiry date and the Group believes that it is probable that future taxable profits, together with the reversal of existing temporary differences, will be sufficient to utilise the recognised deferred tax assets, however actual outcomes could differ from these estimates due to changes in the factors mentioned above. A movement of +/-10% in forecast taxable profits would increase/(decrease) the amount of net deferred tax assets recognised by £2.6m/£(2.6m), and is considered a reasonable possible change.

 

The deferred tax assets not recognised relate to losses on a mix of adjusted and non-adjusted items. Therefore the £27.4m charge relating to unrecognised deferred tax assets has been apportioned between adjusted and reported profit in proportion to the total tax losses arising within each category, with £4.8m recognised outside adjusted profit, and £22.6m within adjusted profit.

 

8     Earnings per share

 

Basic earnings per share is calculated by dividing the profit attributable to the owners of the parent company ASOS Plc by the weighted average number of ordinary shares in issue during the period. Own shares held by the Employee Benefit Trust and Link Market Trust are excluded from the weighted average number of ordinary shares.

 

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue for the effects of all potentially dilutive ordinary shares. However, as the Group incurred a loss during the period, potential ordinary shares were anti-dilutive and have therefore been excluded from the calculation of diluted loss per share. Accordingly, basic and diluted loss per share are the same for the current period.

 

	26 weeks to 1 March 2026	26 weeks to 2 March 2025
Weighted average number of shares in issue - basic and diluted	119,469,716	119,218,710
Loss for the period (£m)	(131.3)	(198.8)
Basic and diluted loss per share (pence per share)	(109.9)	(166.8)

 

9     Goodwill and other intangible assets

 

	26 weeks to 1 March 2026	52 weeks to 31 August 2025	26 weeks to 2 March 2025
	£m	£m	£m
Net book value
At the beginning of the period	473.6	514.0	514.0
Additions	41.3	83.0	43.5
Amortisation expense	(57.0)	(115.5)	(57.8)
Impairment charges	(70.2)	(7.9)	(7.3)
At the end of the period	387.7	473.6	492.4

 

Refer to Note 3 for details of impairment charges.

 

The net book value comprises:

 

	1 March 2026	31 August 2025	2 March 2025
	£m	£m	£m
Net book value
Goodwill	35.2	35.2	35.2
Brands and domain names	24.5	25.2	26.0
Customer relationships	9.1	10.6	12.1
Software	307.6	396.5	411.5
Assets under construction	11.3	6.1	7.6
At the end of the period	387.7	473.6	492.4

 

Goodwill is monitored on an entity wide basis at the reporting segment level as a singular CGU, the ASOS Group CGU. 

 

Goodwill is not amortised but is reviewed for impairment at least annually (or more frequently where there is an indication that the asset may be impaired) by assessing the recoverable amount of each cash-generating unit (CGU), or group of cash generating units, to which the goodwill relates. Refer to Note 13 for further information on impairment testing for the period.

 

Capital expenditure committed at 1 March 2026 but not yet incurred amounted to £71.6m (31 August 2025: £46.1m; 2 March 2025: £60.0m).

 

10   Property, plant and equipment

 

	26 weeks to 1 March 2026	52 weeks to 31 August 2025	26 weeks to 2 March 2025
	£m	£m	£m
Net book value
At the beginning of the period	153.4	283.2	283.2
Additions	1.6	6.5	7.7
Disposals	-	(0.1)	-
Depreciation expense	(13.0)	(26.7)	(13.9)
Impairment charges	-	(109.5)	(108.8)
At the end of the period	142.0	153.4	168.2

  

The net book value comprises:

 

	1 March 2026	31 August 2025	2 March 2025
	£m	£m	£m
Net book value
Fixtures, fittings, plant and machinery	135.9	151.4	160.5
Computer equipment	5.5	1.5	4.3
Assets under construction	0.6	0.5	3.4
At the end of the period	142.0	153.4	168.2

 

11   Leases

 

The Group holds leases for its fulfilment centres and office spaces. Leases typically run for terms of between 10 and 20 years and may include break clauses or options to renew beyond the non-cancellable period. The majority of the Group's leases are subject to market review, usually every 5 years.

 

Right-of-use assets

	26 weeks to 1 March 2026	52 weeks to 31 August 2025	26 weeks to 2 March 2025
	£m	£m	£m
At the beginning of the period	172.1	254.0	254.0
Remeasurements / modifications	13.9	(42.2)	(41.9)
Depreciation expense	(11.3)	(24.0)	(12.0)
Impairment charge	(2.5)	(20.7)	(26.4)
Change in dilapidations estimate	(8.9)	1.5	3.0
Foreign exchange differences	-	3.5	3.5
At the end of the period	163.3	172.1	180.2

 

Right-of-use assets comprise entirely of leases for land and buildings.

 

Lease Liabilities

	26 weeks to 1 March 2026	52 weeks to 31 August 2025	26 weeks to 2 March 2025
	£m	£m	£m
At the beginning of the period	224.5	289.6	289.6
Remeasurements / modifications	13.9	(42.2)	(41.9)
Payments	(17.8)	(32.1)	(16.7)
Interest expense	3.3	6.4	3.0
Foreign exchange differences	0.7	2.8	1.3
At the end of the period	224.6	224.5	235.3
Current	27.6	27.5	26.4
Non-current	197.0	197.0	208.9
Total lease liabilities	224.6	224.5	235.3

 

Remeasurements / modifications to the lease liability balance are primarily driven by market rent reviews during the period for several of the Group's leased sites.

12   Investments in associates

 

The Group holds a 25% equity interest in 24.8.2024 Limited (IPCO), a UK-incorporated company and subsidiary of Heartland A/S - a related party of the Group. The Group also holds one representative director position on the IPCO board.

 

IPCO holds the Topshop/Topman (TSTM) brand assets and has granted a licence to ASOS.com for 10 years (extendable up to 25 years at the Group's discretion), pursuant to which ASOS.com has the exclusive right to design TSTM products (subject to de minimis rights to design local products) for global distribution and to sell TSTM products through the ASOS.com website in consideration for a royalty fee. ASOS also has the right to operate Topshop.com and Topman.com globally, and has been granted exclusive wholesale distribution rights in the UK and North America, while the purchasing entity retains the rights to open branded stores globally and distribute through wholesale partners outside of the UK and North America.

 

The Group is considered to have the ability to significantly influence, but not control or jointly control, the financial and operating decisions of IPCO through its equity interest and board representation. The investment in IPCO has therefore been classified as an associate, initially recognised at cost and subsequently accounted for using the equity method. The share of net profit/(loss) from the associate is recognised within other income.

 

The following sets out the movement in the carrying amount of investments in associates:

 

	26 weeks to 1 March 2026	52 to weeks to 31 August 2025	26 weeks to 2 March 2025
	£m	£m	£m
At the beginning of the period	44.9	-	-
Additional investment	-	45.0	45.0
Share of net profit/(loss) for the period, net of tax	-	(0.1)	1.3
Distributions received	(3.0)	-	-
At the end of the period	41.9	44.9	46.3

 

13   Impairment of non-financial assets

Inputs and assumptions

Cash-generating units

Cash-generating units (CGUs) are deemed the smallest group of assets that independently generate cash inflows and are independent of the cash flows generated by other assets. It was determined that the Group only has one CGU (the Group level) on the basis that the majority of assets within the Group are shared (i.e. software assets that support the entire Group) and therefore unable to be allocated on a reasonable or consistent basis in any other way.

 

Composition of CGU

For impairment testing purposes, the CGU comprises the following:

 

	1 March 2026	31 August 2025	2 March 2025
	£m	£m	£m
Goodwill and other intangible assets	387.7	473.6	492.4
Property, plant and equipment	142.0	153.4	168.2
Right-of-use assets	163.3	172.1	180.2
	693.0	799.1	840.8

 

Identification of impairment indicator

Given the reported loss recognised during the period, combined with the volatility within the macro-economic environment, an indicator of impairment was deemed to exist.

 

Approach and assumptions

The recoverable amount for the CGU has been determined using a value-in-use calculation which is based upon the cash flows expected to be generated, derived from the latest budget and forecast data which are reviewed by the Board, and consistent with those used for the Group's going concern and viability assessments. Budget and forecast data reflects both past experience and future expectations of market conditions. The key assumptions in measuring value-in-use are as follows:

 

Assumption	Details
Cash flow years / assumptions	·   Derived from medium-term forecasts reviewed and approved by the Board which cover a period of five years. Growth rates are then reduced to 2.0% (the long-term growth rate) into perpetuity (31 August 2025: 2.0%).   ·   Whilst the value-in-use excludes lease rentals (a financing cash flow under IFRS 16 Leases), an estimated cash outflow for future lease renewals is assumed from the current lease end dates.
Discount rate	·   A post-tax discount rate representing the Group's weighted average cost of capital (WACC), subsequently grossed up to a pre-tax rate using an iterative calculation that yields the same value-in-use when tax cash flows are excluded.   ·   The post-tax WACC has been calculated using the capital asset pricing model, the inputs of which include a UK risk-free rate based on government bond rates, a UK equity risk premium and levered debt premium benchmarked to externally available data, and an average beta derived from a comparator group.   ·   The resulting discount rates are:
	1 March 2026		31 August 2025
	Post-tax rate	Pre-tax rate	Post-tax rate	Pre-tax rate
	12.9%	16.4%	12.5%	15.9%.

 

Outputs

No impairments were identified as a result of the impairment review described above, with headroom noted of c.£369m (52 weeks to 31 August 2025: c.£103m).

 

Key sources of estimation uncertainty - Assumptions in relation to impairment assessment

Of the assumptions used in the assessment, the value-in-use calculations are most sensitive to changes in the discount rate, the long-term growth rate and forecast cash flows (comprising revenue, gross margin and fixed overheads). Cash flows are derived from forecasts in line with those used for the going concern assessments which assume sales growth rates gradually improve vs. the FY25 exit rate, trending towards mid-single-digit growth after 18 months which is then sustained for the remainder of the plan. Improvements in adjusted gross margin of at least 100bps vs FY25 to 48% to 50% are assumed during FY26 with FY27 & FY28 continuing at around 50% level.

 

A sensitivity analysis for reasonable possible changes in assumptions was conducted on the impairment tests, where management assessed a scenario in which the revenue growth rates within the five-year forecast cash flows (being the most sensitive assumption) were reduced by half. To reflect this adjustment, a corresponding reduction in variable costs and cost of sales was modelled to maintain gross margin percentage in line with original forecasts. Under this sensitivity scenario, no impairment was noted.

 

The following table shows the amount by which the assumptions would have to change to make the recoverable amount equal to the carrying value to show the headroom sensitivity. It is not considered that a reasonable possible change in the discount rate, fixed overheads nor the long-term growth rate would cause an impairment, therefore they are not included below.

 

Sensitivity	1 March 2026	31 August 2025
A reduction in forecast annual growth rates of:1	(2.5)%	(0.7%)
A reduction in forecast revenue vs base case of:2	(9.9)%	(2.7%)
A reduction in forecast gross margin in each year of:	(2.1)%	(0.6%)
1 Applied to the Group five-year plan period
2 Applied to all years within the assessment period

14   Trade and other payables

 

	1 March 2026	31 August 2025	2 March 2025
	£m	£m	£m
Trade payables	108.9	122.7	94.9
Other payables	128.0	175.0	149.6
Accruals	174.7	177.6	170.7
Refund liabilities	56.1	77.9	64.1
Deferred revenue	42.3	31.6	47.1
Taxation and social security	26.5	34.5	20.3
Total trade and other payables	536.5	619.3	546.7

 

Trade payables comprise amounts owed in relation to inventory purchases. Other payables comprise amounts owed in relation to all other purchases.

 

15   Borrowings

 

	1 March 2026	31 August 2025	2 March 2025
	£m	£m	£m
Convertible bonds	350.4	343.3	336.7
Nordstrom loan	-	6.5	6.5
Term loan	149.0	153.8	153.3
Other short-term borrowings	5.0	-	-
Total borrowings	504.4	503.6	496.5
Current	93.4	96.4	18.5
Non-current	411.0	407.2	478.0
Total borrowings	504.4	503.6	496.5

 

Convertible bonds

On 16 April 2021 the Group issued £500m of convertible bonds. The unsecured instruments paid a coupon of 0.75% until April 2026, or the conversion date, if earlier. The initial conversion price was set at £79.65 per share.

 

On 19 September 2024 the Group launched a refinancing exercise of the Convertible Bonds due 2026 as follows:

 

·      £253.0m was exchanged into new Convertible Bonds due 2028;

·      £173.4m of the Convertible Bonds due 2026 was repurchased at a discount to par of 15%; and

·      As a result, £73.6m remained in the Convertible Bonds due 2026.

 

The Convertible Bonds due 2028 were issued at par and carry a fixed annual coupon of 11%, payable semi-annually in arrears. The initial conversion price has been set at £79.65, in line with the Convertible Bond due 2026. The Bonds will be redeemed on 19 September 2028, unless previously converted, exchanged, redeemed or purchased and cancelled in accordance with the terms and conditions of the Bonds, at a redemption price of 120% of the principal amount.

 

The Convertible Bonds due 2026 were redeemed in April 2026, after the balance sheet date.  

 

Nordstrom loan

On 12 July 2021 the Group announced a strategic partnership with Nordstrom, a US-based multi-channel retailer, to drive growth in North America. As part of this venture, Nordstrom purchased a minority interest in ASOS Holdings Limited which held the Topshop, Topman, Miss Selfridge and HIIT brands in exchange for £10 as well as providing a £21.9m loan, partially repaid in prior years.

 

The remaining loan balance of £6.5m was repaid during the period.

 

Term loan

In November 2025, the Group entered into agreements to refinance its term loan facilities. On the effective date in December 2025, the Group's existing £150.0m term loan was repaid and the associated revolving credit and accordion facilities with Bantry Bay were terminated, replaced by a £150.0m senior term loan and an £87.5m Delayed Draw Term Loan (DDTL) facility, both maturing in November 2030. Both the senior term loan and DDTL facility (when drawn) bear interest at a margin above SONIA. The DDTL incurs commitment fees at a market rate and is currently undrawn.

 

The Facilities carry a fixed and floating charge over all assets of the following chargors in the Group - ASOS Plc, ASOS.com Limited, ASOS Intermediate Holdings Limited, Mornington & Co (No. 1) Limited and Mornington & Co (No. 2) Limited.

 

Impact of refinancing the term loan on the Group accounts

The impact of the refinancing activities during the period on the Group's financial statements are shown below:

 

	Balance sheet		Cash flow	Income statement
	Borrowings (Term loan)	Other capitalised transaction costs	Inflow / (outflow)	Refinancing loss
	£m	£m	£m	£m
As at 31 August 2025	(153.8)	2.1	-	-
Drawdown of principal	(150.0)	-	150.0	-
Repayment of principal	150.0	-	(150.0)	-
Loss on debt extinguishment	(1.8)	(1.8)	-	3.6
Transaction costs	4.5	1.3	(9.9)	4.1
Total refinancing impact	2.7	(0.5)	(9.9)	7.7
Interest expense	(10.0)	(0.4)
Interest paid	12.1	-
As at 1 March 2026	(149.0)	1.2

 

Other short-term borrowings

During the period the Group entered into a supplier finance arrangement under which the finance provider settles supplier invoices directly and the Group subsequently repays the finance provider in accordance with the arrangement terms.

16   Provisions

 

	Dilapidations	Onerous occupancy	Total
	£m	£m	£m
As at 1 September 2025	72.7	29.5	102.2
Recognised/(released)1	(28.8)	1.0	(27.8)
Utilised	-	(2.2)	(2.2)
Unwinding of discount	1.4	0.7	2.1
Foreign exchange differences	0.3	-	0.3
As at 1 March 2026	45.6	29.0	74.6
Current	-	5.0	5.0
Non-current	45.6	24.0	69.6
As at 1 March 2026	45.6	29.0	74.6
As at 2 September 2024	68.7	20.5	89.2
Recognised	1.4	13.0	14.4
Utilised	-	(3.9)	(3.9)
Unwinding of discount	2.6	1.2	3.8
Foreign exchange differences	-	(1.3)	(1.3)
As at 31 August 2025	72.7	29.5	102.2
Current	-	4.4	4.4
Non-current	72.7	25.1	97.8
As at 31 August 2025	72.7	29.5	102.2
As at 2 September 2024	68.7	20.5	89.2
Recognised	2.7	15.3	18.0
Utilised	-	(1.6)	(1.6)
Unwinding of discount	1.3	0.5	1.8
Foreign exchange differences	0.3	0.1	0.4
As at 2 March 2025	73.0	34.8	107.8
Current	-	4.9	4.9
Non-current	73.0	29.9	102.9
As at 2 March 2025	73.0	34.8	107.8

1 Included are provision reductions of £29.1m arising from updated estimates of dilapidation obligations across the Group's property portfolio. This decrease reflects a comprehensive review of expected remediation costs for several warehouses including now vacant sites, incorporating current market rates and more detailed assessments of required works. Of the reduction, £20.2m is attributable to vacant leased sites where the related right‑of‑use assets were fully impaired in prior periods and is therefore recognised in profit or loss within administrative expenses. Refer to Note 3 for further details.

 

Dilapidation provisions

Dilapidations are recognised where there is a present obligation to repair and restore leased properties to their preoccupancy state at the end of the lease term.

 

Onerous occupancy provisions

Where the Group no longer operates from a leased property, onerous property contract provisions are recognised for the least net cost of exiting from the contract.

17   Financial instruments

Financial instruments by category

The carrying amounts of the Group's financial assets and financial liabilities as at the balance sheet date are as follows:

 

	Amortised cost	Fair value through profit or loss	Total
As at 1 March 2026	£m	£m	£m
Derivative financial assets	-	3.2	3.2
Cash and cash equivalents	209.5	-	209.5
Trade and other receivables1	38.4	-	38.4
Derivative financial liabilities	-	(4.8)	(4.8)
Lease liabilities	(224.6)	-	(224.6)
Trade and other payables2	(461.6)	-	(461.6)
Borrowings	(504.4)	-	(504.4)
	(942.7)	(1.6)	(944.3)
As at 31 August 2025
Derivative financial assets	-	1.3	1.3
Cash and cash equivalents	318.9	-	318.9
Trade and other receivables1	42.3	-	42.3
Derivative financial liabilities	-	(10.1)	(10.1)
Lease liabilities	(224.5)	-	(224.5)
Trade and other payables2	(542.1)	-	(542.1)
Borrowings	(503.6)	-	(503.6)
	(909.0)	(8.8)	(917.8)
As at 2 March 2025
Derivative financial assets	-	10.9	10.9
Cash and cash equivalents	220.7	-	220.7
Trade and other receivables1	41.6	-	41.6
Derivative financial liabilities	-	(4.5)	(4.5)
Lease liabilities	(235.3)	-	(235.3)
Trade and other payables2	(465.7)	-	(465.7)
Borrowings	(496.5)	-	(496.5)
	(935.2)	6.4	(928.8)
1 Trade and other receivables excludes prepayments and VAT receivables.
2 Trade and other payables excludes deferred revenue and any amounts in relation to taxation.

 

Derivative financial instruments are currently held at fair value on the balance sheet  - all are within Level 2 of the fair value hierarchy.

Carrying amount versus fair value

Set out below is a comparison of the carrying amount and the fair value of financial instruments that are carried in the financial statements at a value other than fair value. The fair value of financial assets and liabilities are based on prices available from the market on which the instruments are traded. Where market values are not available, the fair values of financial assets and liabilities have been calculated by discounting expected future cash flows at prevailing interest rates. The fair values of cash and cash equivalents, trade and other receivables, and trade and other payables are considered to approximate to their book values.

 

	Fair value hierarchy	Carrying amount	Fair value
As at 1 March 2026		£m	£m
Convertible bond	1	(350.4)	(349.8)
Term loan	2	(149.0)	(148.6)
Other short-term borrowings	2	(5.0)	(5.0)
		(504.4)	(503.4)
As at 31 August 2025
Convertible bond	1	(343.3)	(338.3)
Nordstrom loan	2	(6.5)	(3.0)
Term loan	2	(153.8)	(151.8)
		(503.6)	(493.1)
As at 2 March 2025
Convertible bond	1	(336.7)	(313.8)
Nordstrom loan	2	(6.5)	(2.8)
Term loan	2	(153.3)	(152.0)
		(496.5)	(468.6)

 

Fair value hierarchy is defined as:

 

§  Level 1 fair value measurements are derived from quoted market prices (unadjusted) in active markets for identical assets or liabilities at the balance sheet date. This level includes listed equity securities and debt instruments on public exchanges;

§  Level 2 fair value measurements are derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value of financial instruments is determined by discounting expected cash flows at prevailing interest rates; and

§  Level 3 fair value measurements are derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

18   Analysis of net debt

 

Group net debt comprises cash and cash equivalents less any borrowings drawn down at period-end (including accrued interest), but excluding outstanding lease liabilities.

 

	As at 1 March 2026	As at 31 August 2025	As at 2 March 2025
	£m	£m	£m
Borrowings	(504.4)	(503.6)	(496.5)
Lease liabilities	(224.6)	(224.5)	(235.3)
Liabilities from financing activities	(729.0)	(728.1)	(731.8)
Cash and cash equivalents	209.5	318.9	220.7
Net debt	(519.5)	(409.2)	(511.1)
Net debt APM (ex-lease liabilities)	(294.9)	(184.7)	(275.8)

 

Cash and cash equivalents includes uncleared payment provider receipts of £39.3m, which are typically received within three business days (31 August 2025: £48.8m; 2 March 2025 £39.4m).

 

Included within cash and cash equivalents is £8.8m (31 August 2025: £11.6m; 2 March 2025 £9.7m) of cash collected on behalf of partners of the Direct-to-Consumer fulfilment proposition (Partner Fulfils) and ASOS Fulfilment Services (AFS). ASOS Payments UK Limited and the Group are entitled to interest amounts earned on the deposits and amounts are held in a segregated bank account that is settled on a monthly basis.

 

The table below sets out the movements in liabilities arising from financing activities:

 

	Lease liabilities	Borrowings	Liabilities from financing activities
	£m	£m	£m
As at 1 September 2025	(224.5)	(503.6)	(728.1)
Cash flows from financing activities
Drawdown of principal	-	(150.0)	(150.0)
Repayments of principal	14.5	156.5	171.0
Interest paid	3.3	26.4	29.7
Transaction costs	-	4.5	4.5
Non-cash movements
Movement in lease liabilities	(13.9)	-	(13.9)
Supplier financing	-	(4.9)	(4.9)
Foreign exchange impacts	(0.7)	-	(0.7)
Loss on debt extinguishment	-	(1.8)	(1.8)
Accrued interest	(3.3)	(31.5)	(34. 8)
As at 1 March 2026	(224.6)	(504.4)	(729.0)

 

 

	Lease liabilities	Borrowings	Liabilities from financing activities
	£m	£m	£m
As at 2 September 2024	(289.6)	(688.1)	(977.7)
Cash flows from financing activities
Repayments of principal	25.7	63.3	89.0
Interest paid	6.4	32.4	38.8
Repurchase of convertible bond	-	140.6	140.6
Refinancing fees paid	-	4.9	4.9
Non-cash movements
Movement in lease liabilities	42.2	-	42.2
Foreign exchange impacts	(2.8)	-	(2.8)
Debt modification gain	-	8.1	8.1
Accrued interest	(6.4)	(64.8)	(71.2)
As at 31 August 2025	(224.5)	(503.6)	(728.1)
As at 2 September 2024	(289.6)	(688.1)	(977.7)
Cash flows from financing activities
Repayments of principal	13.7	63.3	77.0
Interest paid	3.0	6.6	9.6
Repurchase of convertible bond	-	140.6	140.6
Refinancing fees paid	-	4.9	4.9
Non-cash movements
Movement in lease liabilities	41.9	-	41.9
Foreign exchange impacts	(1.3)	-	(1.3)
Debt modification gain	-	8.1	8.1
Accrued interest	(3.0)	(31.9)	(34.9)
As at 2 March 2025	(235.3)	(496.5)	(731.8)

 

19   Related party transactions

Transactions with other related parties

During the period, the Group made purchases primarily of inventory, net of VAT, totalling £32.6m (31 August 2025: £59.2m; 2 March 2025: £27.1m) from Aktieselskabet af 5.5.2010, a company which has a significant shareholding in the Group. At 1 March 2026, the amount due to Aktieselskabet af 5.5.2010 was £10.9m (31 August 2025: £12.8m; 2 March 2025: £8.3m).

 

During the period, the Group incurred fees, net of VAT, totalling £9.1m (31 August 2025: £16.1m; 2 March 2025: £7.2m) payable to 24.8.2024 Limited, an associate of the Group and a subsidiary of Heartland A/S. At 1 March 2026, the amount due to 24.8.2024 Limited was £5.4m (31 August 2025: £5.4m; 2 March 2025: £4.1m).

 

During the period, the Group did not make any purchases of inventory (31 August 2025: £1.0m; 2 March 2025: £0.4m) from entities under the control of Frasers Group plc, a company which has a significant shareholding in the Group. At 1 March 2026, the amount due to the Frasers Group was £nil (31 August 2025: £0.1m; 2 March 2025: £0.1m).

20   Contingent liabilities

From time to time, the Group is subject to various legal proceedings and claims that arise in the ordinary course of business, which due to the fast-growing nature of the Group and its e-commerce base, may concern the Group's brand and trading name or its product designs. All such cases brought against the Group are robustly defended and a liability is recorded only when it is probable that the case will result in a future economic outflow which can be reliably measured. The Group is subject to assessments from an overseas customs authority in relation to import duty for prior financial periods. The Group has appealed these assessments on the basis that the prior calculations comply with World Trade Organisation-compliant customs valuation methods. At the balance sheet date, the appeal process remains ongoing. Based on legal advice and management's assessment, the maximum exposure is considered immaterial, and any payments on account in excess of this are expected to be fully recoverable.

 

21   Post Balance Sheet Events

 

On 16 April 2026, after the reporting date, the Group redeemed the Convertible Bonds due 2026 in full, settling the obligation with a cash payment of £73.6m.

 

The Group has also entered into discussions with interested parties in relation to a potential disposal of the Lichfield distribution centre. Any potential transaction remains subject to negotiation, due diligence and contract. Accordingly, no adjustments to the financial statements have been recognised at the balance sheet date.

Principal risks and uncertainties

 

The Board have reviewed the Group's risk environment including in relation to ongoing geopolitical events, global macroeconomics and conflicts. In their current view the principal risks and uncertainties which could impact the Group over the remaining 26 weeks of the period ended 30 August 2026 remain materially unchanged from those set out in the Group's Annual Report and Accounts for the 52 weeks to 31 August 2025.

 

Those Group principal risks are listed below and set out in more detail on pages 56 to 60 of the Group's Annual Report and Accounts for the 52 weeks to 31 August 2025, a copy of which is available on the Group's website, www.asosplc.com. 

 

·      Loss of personal data

·      Disruptions of direct and core operations

·      Not protecting stakeholder safety and wellbeing

·      Failure to compete effectively at speed and loss of relevance and brand value

·      Ineffective capital allocation and not delivering ROI on investments

·      Breaching key corporate laws and regulations

·      Non-compliance with global tax requirements

·      Challenges and impacts of climate change

·      Not having the right employee behaviours and capability for success

 

Statement of Directors' responsibilities

 

The Directors confirm that this set of Condensed Consolidated Interim Financial Statements has been prepared in accordance with UK adopted IAS 34 Interim Financial Reporting and the Disclosure and Transparency Rules of the UK's Financial Conduct Authority, and that the Interim Management Report herein includes a true and fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely:

 

·      that the report contains a fair review of important events that have occurred during the first 26 weeks of the financial year, and their impact on the condensed set of financial statements, and of the principal risks and uncertainties for the remaining 26 weeks of the financial year; and

·      material related-party transactions in the first 26 weeks and any material changes in the related-party transactions described in the last annual report.

 

The Directors of ASOS plc are listed on the Group's website: https://www.asosplc.com/this-is-asos/our-leadership/board-directors/

 

By order of the Board

 

 

 

José Antonio Ramos Calamonte

Chief Executive Officer

Independent Review Report to ASOS Plc

 

Report on the condensed consolidated interim financial statements

 

Our conclusion

We have reviewed ASOS plc's condensed consolidated interim financial statements (the "interim financial statements") in the Interim results of ASOS plc for the 26 week period ended 1 March 2026 (the "period").

 

Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

 

The interim financial statements comprise:

·      the Consolidated Balance Sheet as at 1 March 2026;

·      the Consolidated Income Statement and Consolidated Statement of Comprehensive Income for the period then ended;

·      the Consolidated Cash Flow Statement for the period then ended;

·      the Consolidated Statement of Changes in Equity for the period then ended; and

·      the explanatory notes to the interim financial statements.

 

The interim financial statements included in the Interim results of ASOS plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

 

Basis for conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

 

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

We have read the other information contained in the Interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

 

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.

Responsibilities for the interim financial statements and the review

 

Our responsibilities and those of the directors

The Interim results, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Interim results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Interim results, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.

 

Our responsibility is to express a conclusion on the interim financial statements in the Interim results based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report.

 

Use of this report

This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

 

 

 

 

PricewaterhouseCoopers LLP

Chartered Accountants

London

23 April 2026

 

Alternative Performance Measures (APMs)

 

The Group uses the below non-IFRS performance measures to allow shareholders to better understand the underlying financial performance and position of the Group. These should not be seen as substitutes for IFRS measures of performance and may not allow a direct comparison to other companies.

 

Performance measure	Closest IFRS measure	Definition	How ASOS uses this measure
Like-for-like revenue growth	Revenue	Like-for-like revenue growth reflects constant currency revenue, which includes retail sales and income from other services, less adjusting items and the impact of foreign exchange translation.	This measure is presented as a means of eliminating the effects of exchange rate fluctuations on the period-on-period reported results.
			26 weeks to 1 March 2026 26 weeks to 2 March 2025 Growth   £m £m % Revenue 1,116.0 1,299.4 (14%) Adjusting items (Note 3) (2.5) (7.8) Impact of FX translation (2.7) - Like-for-like revenue growth 1,110.8 1,291.6 (14%)
			26 weeks to 2 March 2025 26 weeks to 3 March 2024 Growth   £m £m % Revenue 1,299.4 1,505.8 (14%) Adjusting items (Note 3) (7.8) (8.3)   Impact of FX translation 16.6 -   Like-for-like revenue growth 1,308.2 1,497.5 (13%)
Retail sales	Revenue	Internet sales recorded net of an appropriate deduction for actual and expected returns, relevant vouchers, discounts and sales taxes.   Retail sales exclude income from delivery receipt payments, marketing services, commission on partner-fulfilled sales, revenue from wholesale sales and jobber income.	A measure of the Group's trading performance focusing on the sale of products to end customers. Used by management to monitor overall performance across markets, and the basis of key internal metrics such as GMV and ABV.       A reconciliation of this measure is included in Note 4.
Gross merchandise value (GMV)	Revenue	Retail sales excluding adjusting items plus revenue attributable to Flexible Fulfilment partners, net of returns and excluding sales tax.	This measure reflects the increasing shift to Flexible Fulfilment models and is used as an indicator of top-line performance.
			26 weeks to 1 March 2026 26 weeks to 2 March 2025 £m £m GMV 1,170.1 1,277.4 Less revenue attributable to partners (151.0) (55.1) Adjusted retail sales 1,019.1 1,222.3 Adjusting items 0.3 5.5 Reported retail sales 1,019.4 1,227.8
Like-for-like GMV growth	Revenue	Like-for-like GMV growth eliminates the effect of exchange rate fluctuations on the period-on-period GMV metric.	26 weeks to 1 March 2026 26 weeks to 2 March 2025 Growth £m £m % GMV 1,170.1 1,277.4 (8%) Impact of FX translation (4.5) - Like-for-like GMV growth 1,165.6 1,277.4 (9%)
			26 weeks to 2 March 2025 26 weeks to 3 March 2024 Growth £m £m % GMV 1,277.4 1,454.9 (12%) Impact of FX translation 16.1 - Like-for-like GMV growth 1,293.5 1,454.9 (11%)

 

 

Performance measure	Closest IFRS measure	Definition	How ASOS uses this measure
Adjusted revenue	Revenue	Revenue excluding the impact of adjusting items.	A measure of the Group's revenue and gross profitability, excluding the impact of any adjusting items.
Adjusted gross margin	None	Gross profit divided by revenue and excluding the impact of adjusting items.	Reconciliation is shown below:
			26 weeks to 1 March 2026 26 weeks to 2 March 2025   £m £m Revenue 1,116.0 1,299.4 Adjusting items (Note 3) (2.5) (7.8) Adjusted revenue 1,113.5 1,291.6 Gross profit 542.9 586.6 Adjusting items (Note 3) (2.5) (2.4) Adjusted gross profit 540.4 584.2 Gross margin 48.6% 45.1% Adjusted gross margin % 48.5% 45.2%
Adjusted cost to serve	None	Operating expenses (excluding depreciation, amortisation and impairments, and excluding adjusting items) as a percentage of adjusted revenue.	Adjusted cost to serve reflects the underlying profitability of the business and demonstrates discipline on cost structure.
			26 weeks to 1 March 2026 26 weeks to 2 March 2025   £m £m Operating expenses 644.8 813.0 Less depreciation and amortisation (per cash flow) (81.7) (84.0) Less impairment (per cash flow) (72.7) (142.5) Less adjusting operating expenses (Note 3) (83.4) (186.7) Add back adjusting depreciation and amortisation (Note 3) 2.3 2.1 Add back adjusting impairment (Note 3) 69.8 142.3 479.1 544.2   Adjusted revenue 1,113.5 1,291.6   Adjusted cost to serve 43.0% 42.1%
Adjusted EBIT	Operating profit / (loss)	Profit/(loss) before tax, interest, and any adjusting items excluded from adjusted profit/(loss) before tax (see below).	A measure of the Group's underlying profitability for the period, excluding the impact of any transactions outside of the ordinary course of business and not considered to be part of the Group's usual cost / income base. Used by management to monitor the performance of the business each month.
Adjusted profit / (loss) before tax	Profit / (loss) before tax	Adjusted profit/(loss) before tax excludes items recognised in reported profit/(loss) before tax which, if included, could distort comparability between periods.   In determining which items to exclude, the Group considers items which are significant either by virtue of their size and/or nature, or that are non-recurring.	26 weeks to 1 March 2026 26 weeks to 2 March 2025   £m £m Operating loss (100.9) (210.1) Adjusting items excluding finance costs (Note 3) 82.6 170.5 Adjusted EBIT (18.3) (39.6)   Net finance costs (Note 6) (37.0) (31.4) Add back adjusting finance costs (Note 3) 2.9 1.5 Adjusted loss before tax (52.4) (69.5) Add back adjusting items (Note 3) (85.5) (172.0) Loss before tax (137.9) (241.5)

 

 

Performance measure	Closest IFRS measure	Definition	How ASOS uses this measure
Adjusted EBITDA	Operating profit / (loss)	Adjusted EBIT above, adjusted for depreciation, amortisation and impairments.	Adjusted EBITDA is used to review the Group's profit generation and the sustainability of ongoing capital reinvestment and finance costs.
Adjusted EBITDA margin	None	Adjusted EBITDA divided by adjusted revenue.	26 weeks to 1 March 2026 26 weeks to 2 March 2025   £m £m Adjusted EBIT (above) (18.3) (39.6) Add back depreciation and amortisation (per cash flow) 81.7 84.0 Add back impairment (per cash flow) 72.7 142.5 Less adjusting depreciation and amortisation (Note 3) (2.3) (2.1) Less adjusting impairment (Note 3) (69.8) (142.3) Adjusted EBITDA 64.0 42.5     Revenue 1,116.0 1,299.4 Adjusting items (Note 3) (2.5) (7.8) Adjusted revenue 1,113.5 1,291.6   Adjusted EBITDA margin % 5.7% 3.3%
Net cash/(debt)	None	Cash and cash equivalents less the carrying value of borrowings (including accrued interest) drawn down at period-end, but excluding outstanding lease liabilities.	A measure of the Group's liquidity. Further information is included in Note 18.   A reconciliation is included below:
			As at 1 March 2026 As at 2 March 2025   £m £m Cash and cash equivalents 209.5 220.7 Borrowings (504.4) (496.5) Lease liabilities (224.6) (235.3) Net borrowings (519.5) (511.1) Add back lease liabilities 224.6 235.3 Net debt (294.9) (275.8)
Free cash flow	Operating cash flow	Free cash flow is net cash generated from operating activities, after cash capital expenditure, lease and interest payments, and cash flows from associates.	A measure of the cash generated by the Group outside cash flows relating to M&A and financing transactions, which allows management to better assess the cash being generated by the business.   A reconciliation to the cash flow statement is shown below:
			26 weeks to 1 March 2026 26 weeks to 2 March 2025   £m £m Cash generated from operations (per cash flow) (12.0) (17.0) Purchase of tangible and intangible assets (40.8) (47.4) Repayment of principal portion of lease liabilities (14.5) (13.7) Net interest paid (28.3) (6.0) Distributions received from associates 3.0 - Free cash flow (92.6) (84.1)

 

 

Performance measure	Closest IFRS measure	Definition	How ASOS uses this measure
Other working capital movements (Per Financial Review)	None	Removes working capital and cash movements relating to adjusting items.	To provide a reconciliation of the working capital movement in the Financial Statements to the other working capital movement in the Financial Review.
			26 weeks to 1 March 2026 26 weeks to 2 March 2025   £m £m Increase in other working capital (per Financial Review) (86.6) (148.8) Comprises:   Working capital per cash flow (excluding inventory) (104.0) (123.9) Working capital relating to adjusting items (see below) 17.4 (24.9) (86.6) (148.8)     Working capital relating to adjusting items:   Adjusting items (Note 3) (85.5) (172.0) Add back adjusting impairment (Note 3) 69.8 142.3 Add back adjusting amortisation (Note 3) 2.3 2.1 Add back commercial operating model change (Cost of sales) (Note 3) - 5.4 Add back share of associate's adjusting results (Note 3) 1.7 - Less gain on disposal of brands - (13.8) Less refinancing loss/(gain) 7.7 (2.6) Add back adjusting finance costs (Note 3) 2.9 1.5 Adjusting working capital before cash impacts (1.1) (37.1)   Cash impact of adjusting items (Note 3) 18.5 12.2 Working capital relating to adjusting items 17.4 (24.9)