ASOS Boosts Profitability and Confirms Outlook as Turnaround Gains Traction

The latest update is out from ASOS plc ( (GB:ASC) ).

ASOS reported a 51% rise in adjusted EBITDA for the first half of fiscal 2026, despite a 9% decline in GMV and a 14% drop in revenue, as higher gross margins and lower supply chain costs helped narrow losses. The company highlighted improving trends in its core U.K. market and womenswear, alongside stronger new customer growth and lower churn, signalling early progress in its turnaround strategy.

Management pointed to eight consecutive quarters of gross margin expansion and more than 500 basis points of supply chain cost savings over three years, supported by flexible fulfilment, logistics renegotiations and automation. ASOS also leaned into AI-driven personalisation, app upgrades and deeper ties with Microsoft to boost engagement and efficiency, while confirming full-year guidance and stressing resilience amid new U.S. tariffs and Middle East-related cost pressures.

Strategic initiatives included scaling its Test & React product model, relaunching its 4505 activewear label with strong GMV growth and expanding ASOS Fulfilment Services and partner brand offerings. Early results from app enhancements and curated edits such as “The Heart” show higher sales per customer and faster sell-through, underpinning ASOS’s push to re-establish itself as a leading online fashion destination for young shoppers.

The most recent analyst rating on (GB:ASC) stock is a Hold with a £2.75 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

Spark’s Take on ASC Stock

According to Spark, TipRanks’ AI Analyst, ASC is a Neutral.

The score is held back mainly by weak financial performance (declining revenue, losses, and high leverage) and bearish-to-neutral technicals. This is partially offset by a more positive earnings call, including improved profitability metrics, refinancing/liquidity improvements, and constructive FY26 margin and EBITDA guidance, while valuation support is limited due to ongoing losses.

To see Spark’s full report on ASC stock, click here.

More about ASOS plc

ASOS plc is a U.K.-based online fashion retailer targeting young, fashion-conscious consumers globally. The company sells a mix of its own-label apparel and accessories alongside a large portfolio of third-party brands, increasingly including sportswear and Face + Body products, and operates through a digital platform with a strong focus on mobile shopping and app-based experiences.

Average Trading Volume: 303,376

Technical Sentiment Signal: Strong Sell

Current Market Cap: £267M

See more data about ASC stock on TipRanks’ Stock Analysis page.