Asos shares climbed more than 3 percent on Thursday as the online fashion retailer reported progress in its turnaround strategy, narrowing its pre-tax losses significantly despite a drop in revenue.
Financial Highlights
The group reduced its pre-tax loss by over £100 million to £137.9 million for the six months ending early March, while revenue declined 14 percent to £1.1 billion. Active customers fell 9 percent to 16.5 million, but new customer acquisition in the UK grew 10 percent year-on-year, and March marked the first month of group-level new customer growth since 2021.
AI Integration and Cost Savings
Asos deepened its alliance with Microsoft, embedding artificial intelligence into design, buying, and customer service operations. This resulted in a reduction in cost per contact by over 90 percent, contributing to operational efficiencies.
Debt Management and Turnaround
The company repaid its convertible bonds due 2026 in full for a cash consideration of £73.6 million. Net debt, excluding leases, increased by £19 million year-on-year to £295 million, primarily due to non-cash interest effects. In September 2024, Asos agreed to sell 75 percent of its stake in Topshop and Topman to a joint venture with Heartland, using proceeds to reorganize its debt profile.
CEO Statement
Chief executive José Antonio Ramos Calamonte said: “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.” He reiterated the goal of restoring profitability after the post-pandemic downturn in e-commerce.
Asos shares fell 2.5 percent to 219p, and the stock is down more than a fifth since the start of the year.
