ASOS plc (GB:ASC)
LSE:ASC
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ASOS plc
(LSE:ASC)
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Rating:52Neutral
Price Target:
214.00 p
▼(-25.95% Downside)
Action:ReiteratedDate:03/10/26
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.
Positive Factors
Gross margin expansion
Sustained gross margin improvement reflects improved product mix, pricing discipline and lower mark-downs, which underpin structural profitability even if top-line growth is muted. Durable higher gross margins give ASOS room to fund logistics, tech and loyalty investments while supporting targeted adjusted EBITDA goals over the medium term.
Negative Factors
Declining top line / GMV
Persistent declines in revenue and GMV, especially in the U.S., erode scale economics and make margin targets harder to sustain without continued cost actions. Structural top-line weakness reduces leverage on fixed costs and may force trade-offs between short-term profitability and long-term market share restoration.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin expansion
Sustained gross margin improvement reflects improved product mix, pricing discipline and lower mark-downs, which underpin structural profitability even if top-line growth is muted. Durable higher gross margins give ASOS room to fund logistics, tech and loyalty investments while supporting targeted adjusted EBITDA goals over the medium term.
Read all positive factors
ASOS plc (ASC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£277.70M
Dividend YieldN/A
Average Volume (3M)302.80K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth-14.89%
EPS Growth12.08%
CountryUK
Employees3,027
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.36
Shares Outstanding119,613,846
10 Day Avg. Volume250,882
30 Day Avg. Volume302,802
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.57
Price to Sales (P/S)0.14
P/FCF Ratio2.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£340.00Price Target Upside17.65% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)-0.42
Revenue Forecast (FY)£2.29B
ASOS plc Business Overview & Revenue Model
Company Description
ASOS Plc operates as an online fashion retailer worldwide. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge and...
How the Company Makes Money
ASOS makes money primarily by selling fashion and beauty products directly to consumers through its online storefronts. Its core revenue stream is product sales, which include (1) ASOS-owned and exclusive brands (private-label products where ASOS ...
ASOS plc Earnings Call Summary
Earnings Call Date:Nov 21, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 14, 2026
Earnings Call Sentiment Positive
ASOS has made significant strides in reducing stock and debt, improving profitability, and increasing consumer engagement. Despite a decline in GMV and some challenges in the U.S. market, the company has a clear strategic direction with positive developments in its Test & React model, flexible fulfillment, and loyalty program.Positive Updates
Significant Reduction in Stock
ASOS has reduced its stock from GBP 1.1 billion to less than GBP 400 million, a decrease of between 50 million and 70 million units over three years.
Negative Updates
Decline in GMV
GMV reduced by 12% year-on-year due to cautious consumer backdrop and deliberate profitability actions.
Read all updates
Q4-2025 Updates
Positive
Negative
Significant Reduction in Stock
ASOS has reduced its stock from GBP 1.1 billion to less than GBP 400 million, a decrease of between 50 million and 70 million units over three years.
Read all positive updates
Company Guidance
During the call, ASOS provided guidance for fiscal year '26, emphasizing an expected improvement in GMV trajectory and projecting a gross margin expansion of at least 100 basis points, surpassing 48%. The company anticipates adjusted EBITDA to range between GBP 150 million and GBP 180 million, driven by continued efficiency improvements and a focus on profitability without necessitating a return to growth. ASOS reported reducing its stock to just over GBP 400 million and net debt to GBP 185 million. The company highlighted a successful structural refinancing, extending the term to 2030, increasing liquidity by GBP 87.5 million, and reducing interest rates, resulting in cash interest benefits of approximately GBP 5 million. ASOS showcased a strategic focus on enhancing its customer proposition with AI-driven personalization, expanding its Test & React model to 25% of its business, and increasing flexible fulfillment to 15%. The company also expressed confidence in its ability to achieve medium-term goals, including an adjusted EBITDA margin of 8% and sustainable structural free cash flow generation.ASOS plc Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
55
Neutral
| Breakdown | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.46B | 2.90B | 3.54B | 3.94B | 3.91B |
| Gross Profit | 995.10M | 1.08B | 1.39B | 1.57B | 1.64B |
| EBITDA | -47.70M | -153.60M | -79.50M | 140.90M | 325.80M |
| Net Income | -298.40M | -338.70M | -223.10M | -30.80M | 128.40M |
Balance Sheet | |||||
| Total Assets | 1.67B | 2.27B | 2.63B | 3.00B | 2.88B |
| Cash, Cash Equivalents and Short-Term Investments | 318.90M | 382.90M | 353.30M | 323.00M | 662.70M |
| Total Debt | 728.10M | 977.70M | 1.00B | 856.00M | 792.10M |
| Total Liabilities | 1.46B | 1.75B | 1.76B | 1.98B | 1.85B |
| Stockholders Equity | 212.40M | 521.30M | 866.70M | 1.01B | 1.03B |
Cash Flow | |||||
| Free Cash Flow | 117.80M | 160.30M | -190.60M | -313.50M | 52.60M |
| Operating Cash Flow | 125.70M | 196.70M | -12.70M | -130.60M | 209.70M |
| Investing Cash Flow | 49.10M | -133.50M | -177.90M | -182.90M | -443.50M |
| Financing Cash Flow | -246.90M | -26.00M | 222.70M | -26.30M | 489.10M |
ASOS plc Technical Analysis
Negative
289.00
Price Trends
277.16
Negative
268.44
Negative
280.48
Negative
Market Momentum
-15.46
Negative
39.70
Neutral
52.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ASC, the sentiment is Negative. The current price of 289 is above the 20-day moving average (MA) of 246.18, above the 50-day MA of 277.16, and above the 200-day MA of 280.48, indicating a bearish trend. The MACD of -15.46 indicates Negative momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ASC.
ASOS plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | £1.60B | 6.72 | 121.78% | 3.99% | 3.78% | 3.29% | |
63 Neutral | £487.82M | 11.70 | 7.52% | ― | 13.21% | -54.35% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £597.48M | 1.55 | -35.25% | ― | -20.36% | 44.33% | |
56 Neutral | £646.52M | 8.84 | -113.93% | 1.40% | 3.94% | ― | |
52 Neutral | £277.70M | -1.12 | -111.93% | ― | -14.89% | 12.08% | |
41 Neutral | £265.71M | -3.32 | -9999.00% | ― | -65.42% | 27.73% |
* Consumer Cyclical Sector Average
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ASOS plc Corporate Events
Business Operations and StrategyFinancial Disclosures
ASOS lifts profitability and reiterates guidance as womenswear and app revamp drive gains
Positive
Mar 25, 2026
ASOS reported a sharp improvement in profitability in the first half of its financial year, with adjusted EBITDA up about 50% year on year despite a 9% fall in gross merchandise value, as price discipline, lower returns and cost-cutting lifted adj...
Business Operations and Strategy
ASOS Switches Share Register Management to Equiniti
Positive
Feb 2, 2026
ASOS plc has changed the manager of its share register, transferring responsibility from MUFG Corporate Markets to Equiniti Limited with effect from 2 February 2026. Shareholders will receive notification of the change along with instructions on h...
Regulatory Filings and Compliance
Insider-Linked Investor Increases Stake in ASOS with £0.5m Share Purchase
Positive
Jan 23, 2026
ASOS plc disclosed that Camelot Capital Partners LLC, a person closely associated with Deputy Chair William Barker, has purchased 132,455 ordinary shares in the company on the London Stock Exchange for a total consideration of approximately £...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial DisclosuresShareholder Meetings
ASOS shareholders back AGM resolutions as board shelves buyback and short-notice meeting powers
Neutral
Jan 22, 2026
ASOS plc reported that all resolutions put to shareholders at its 22 January 2026 Annual General Meeting were passed by poll, including approval of the 2025 Annual Report and Accounts, the directors’ remuneration report, the re-election of a...
Regulatory Filings and Compliance
ASOS Deputy Chair’s PCA Increases Stake with Fresh Share Purchases
Positive
Jan 20, 2026
ASOS plc has disclosed that Camelot Capital Partners LLC, a person closely associated with Deputy Chair William Barker, has purchased a total of 93,878 ordinary shares in the company over three transactions conducted on the London Stock Exchange b...
Regulatory Filings and Compliance
ASOS Discloses Further Share Purchases by Deputy Chair’s Associated Investor
Neutral
Jan 14, 2026
ASOS plc has disclosed a series of share purchases by Camelot Capital Partners LLC, a person closely associated with deputy chair William Barker, in compliance with UK Market Abuse Regulations. Across several transactions on the London Stock Excha...
Regulatory Filings and Compliance
Insider-Linked Camelot Capital Increases Stake in ASOS
Positive
Jan 5, 2026
ASOS plc disclosed that Camelot Capital Partners LLC, a person closely associated with Deputy Chair William Barker, has acquired a total of 82,135 ordinary shares in the company through a series of purchases on the London Stock Exchange between 29...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.