Asos raises profit expectations after sales growth

Asos has said that it expects higher revenue growth than previously anticipated for the first six months of 2025.

In an update ahead of its first half results in April, the company revealed that its own brand full-price sales have returned to growth over the period.

The fast fashion giant said that the results were driven by its market-leading Test & React model, now more than 15 per cent of own-brand sales and growing.

Asos expects total sales growth of 13 per cent for the six-month period, with adjusted EBITDA reaching £34 million.

In a November update, the company announced that it expected a "significant improvement" in profitability in the first half of the year, despite continued volume deleverage, following a "strong gross margin development driven by lower markdown activity and increased full-price mix, and continued cost discipline."

The latest update comes after Asos reported last April that losses had widened to £120 million in its half-year results, with sales declining by nearly 20 per cent.

The business' share price has plummeted more than 90 per cent since 2021, reflecting the difficulties faced in the post-pandemic retail landscape.

In September 2024, the e-commerce brand announced plans to slash more than 200 jobs at its head office.

The proposed cuts, primarily affecting the technology team, are part of a broader restructuring effort aimed at "simplifying the organisation" and returning the business to profitability.



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