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ASOS Reports Improved Profitability Amidst Sales Decline

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ASOS Reports Improved Profitability Amidst Sales Decline

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ASOS plc ( (GB:ASC) ) just unveiled an announcement.

ASOS Plc has reported its financial results for the 52 weeks ending August 31, 2025, highlighting a structural improvement in profitability despite a decline in sales. The company achieved a significant increase in adjusted EBITDA by over 60% and improved gross margins, driven by a new commercial model and operational efficiencies. ASOS has also strengthened its balance sheet, reduced supply chain costs, and launched new initiatives to enhance customer engagement, such as the ASOS.WORLD loyalty program and the relaunch of Topshop brands. Looking ahead, ASOS aims to continue expanding its gross margins and EBITDA, with a focus on customer re-engagement and sustainable growth.

The most recent analyst rating on (GB:ASC) stock is a Buy with a £600.00 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 GB:ASC Stock

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

ASOS plc’s overall stock score is primarily impacted by its financial performance, which is currently weak due to declining revenues and high leverage. While there are positive signs from recent strategic initiatives and improved cash flow, the technical analysis and valuation remain concerning. The earnings call provides some optimism with operational improvements, but challenges in sales and market performance persist.

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

More about ASOS plc

ASOS Plc is a global online fashion destination, primarily offering a wide range of fashion products including clothing, footwear, and accessories. The company focuses on delivering fast fashion to a broad market, leveraging its online platform to reach customers worldwide.

Average Trading Volume: 281,941

Technical Sentiment Signal: Sell

Current Market Cap: £309.7M

For detailed information about ASC stock, go to TipRanks’ Stock Analysis page.

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