ASOS plc (ASC) AI Stock Analysis

• Market Cap: £348.77M
• Dividend Yield: N/A
• Average Volume (3M): 302.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -14.89%
• EPS Growth: 12.08%
• Country: UK
• Employees: 3,027
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.36
• Shares Outstanding: 119,613,846
• 10 Day Avg. Volume: 250,882
• 30 Day Avg. Volume: 302,802
• PEG Ratio: 0.09
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 2.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £351.67
• Price Target Upside: 19.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: 345.00p ▲(17.15% Upside)

ASOS plc's overall stock score reflects a mix of financial challenges and strategic improvements. The most significant factor is the company's precarious financial health, with high leverage and persistent losses. However, positive technical indicators and strategic initiatives highlighted in the earnings call, such as improved profitability and consumer engagement, provide some optimism. The stock's valuation remains a concern due to its negative P/E ratio.

Positive Factors

Gross margin expansion

A 370bp gross margin improvement to >47% suggests structural gains from better pricing, product mix and cost control. Higher sustainable gross margins increase operating leverage, support medium-term EBITDA targets and provide durable buffer against revenue volatility.

Debt reduction and refinancing

Extending debt maturities and cutting interest costs materially lowers refinancing and liquidity risk. The added GBP 87.5m liquidity and ~40% net debt reduction give management runway to execute restructuring and margin programs, improving solvency and strategic flexibility over the medium term.

Improved adjusted EBITDA

A meaningful uplift in adjusted EBITDA demonstrates the company is converting margin initiatives into recurring operating profitability. Stronger EBITDA supports deleveraging, funds reinvestment in personalization and fulfillment, and underpins expectations for sustainable structural free cash flow generation.

Negative Factors

Declining revenue and persistent losses

Sustained revenue decline and operating losses erode operating leverage and limit the company's ability to absorb fixed costs. Persistent top-line contraction undermines long-term recovery, reduces reinvestment capacity, and makes achieving stable profitability and equity rebuild more challenging.

High leverage and shrinking equity base

Significant leverage and a shrinking equity base raise solvency and covenant risks, increasing sensitivity to interest or demand shocks. Negative ROE signals struggle to generate returns for shareholders, constraining capital allocation and limiting capacity for strategic investments over the medium term.

GMV decline and U.S. market weakness

A double-digit GMV contraction, especially an 18% drop in the U.S., signals weakened demand and execution issues in a key growth market. Persistent GMV weakness reduces scale benefits, pressures unit economics, and limits the durability of customer acquisition investments and long-term top-line recovery.

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 HIIT brands, as well as through third-party brands. It is also involved in the employer of marketing staff and payment processing businesses. The company was founded in 2000 and is headquartered in London, the United Kingdom.

How the Company Makes Money

ASOS generates revenue primarily through the sale of apparel and accessories on its e-commerce platform. The company's revenue model is focused on direct-to-consumer sales, which allows it to maintain higher margins compared to traditional retail. Key revenue streams include the sale of ASOS's own branded products and the sales of third-party brands through its marketplace. The company also benefits from international expansion, with significant sales from overseas markets. Strategic partnerships with various fashion brands and collaborations further enhance product offerings and drive sales. Additionally, ASOS invests in technology and marketing to improve customer acquisition and retention, contributing to its overall revenue growth.

ASOS plc Financial Statement Overview

Summary

ASOS plc is facing significant financial challenges, with declining revenues and persistent losses impacting its income statement. The balance sheet reflects high leverage, which could be risky if the company cannot return to profitability. While there is some positive momentum in cash flow generation, the overall financial health of the company remains precarious, necessitating strategic changes to improve performance.

Income Statement

ASOS plc has experienced declining revenue over the past few years, with a negative revenue growth rate of -8.38% in the most recent year. The company has been operating at a loss, as indicated by negative net profit margins and EBIT margins. Despite a historically strong gross profit margin, the recent financial performance shows a concerning trend of increasing losses.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses a risk in times of financial instability. The equity ratio has been decreasing, reflecting a shrinking equity base. Return on equity is negative, highlighting the company's struggle to generate profits from its equity.

Cash Flow

ASOS plc has shown some improvement in free cash flow growth, with a positive growth rate of 35.25% in the latest year. However, the operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is relatively strong, suggesting that despite losses, the company is managing to generate some cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.46B	2.46B	2.90B	3.54B	3.94B	3.91B
Gross Profit	995.10M	995.10M	1.08B	1.39B	1.57B	1.64B
EBITDA	-47.70M	-47.70M	-153.60M	-79.50M	140.90M	325.80M
Net Income	-298.40M	-298.40M	-338.70M	-223.10M	-30.80M	128.40M
Balance Sheet
Total Assets	1.67B	1.67B	2.27B	2.63B	3.00B	2.88B
Cash, Cash Equivalents and Short-Term Investments	318.90M	318.90M	382.90M	353.30M	323.00M	662.70M
Total Debt	728.10M	728.10M	977.70M	1.00B	856.00M	792.10M
Total Liabilities	1.46B	1.46B	1.75B	1.76B	1.98B	1.85B
Stockholders Equity	212.40M	212.40M	521.30M	866.70M	1.01B	1.03B
Cash Flow
Free Cash Flow	117.80M	117.80M	160.30M	-190.60M	-313.50M	52.60M
Operating Cash Flow	125.70M	125.70M	196.70M	-12.70M	-130.60M	209.70M
Investing Cash Flow	49.10M	49.10M	-133.50M	-177.90M	-182.90M	-443.50M
Financing Cash Flow	-246.90M	-246.90M	-26.00M	222.70M	-26.30M	489.10M

ASOS plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 294.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ASC, the sentiment is Neutral. The current price of 294.5 is below the 20-day moving average (MA) of 306.98, above the 50-day MA of 279.45, and above the 200-day MA of 288.25, indicating a neutral trend. The MACD of 9.18 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 35.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ASC.

ASOS plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNLM	75 Outperform	£1.90B	11.85	121.78%	3.99%	3.78%	3.29%
AO	63 Neutral	£588.36M	50.19	7.52%	―	13.21%	-54.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
THG	60 Neutral	£666.66M	-3.72	-18.75%	―	-20.36%	44.33%
ASC	59 Neutral	£348.77M	-1.17	-81.34%	―	-14.89%	12.08%
MOON	56 Neutral	£658.61M	14.85	―	1.40%	3.94%	―
DEBS	46 Neutral	£289.69M	-1.45	-172.24%	―	-65.42%	27.73%

ASOS plc Corporate Events

ASOS Switches Share Register Management to Equiniti

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 how to register for online access to their holdings, signalling an administrative shift in the company’s shareholder services that may improve digital access and support for investors.

The most recent analyst rating on (GB:ASC) stock is a Hold with a £332.00 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

Insider-Linked Investor Increases Stake in ASOS with £0.5m Share Purchase

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 £504,716, bringing its total holding to 18,823,457 shares. The director/PDMR shareholding update, made under UK Market Abuse Regulations, signals continued investment interest from an insider-linked entity and may be interpreted by the market as a vote of confidence in ASOS’s prospects by a major stakeholder aligned with the company’s leadership.

The most recent analyst rating on (GB:ASC) stock is a Sell with a £2.10 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS shareholders back AGM resolutions as board shelves buyback and short-notice meeting powers

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 all standing directors, the election of two new directors, and the re-appointment and fee authority for its auditors, with each resolution supported by around 72% of votes cast. However, the board withdrew two special resolutions that would have authorised on-market share buybacks and allowed general meetings to be called on 14 days’ notice, following engagement with some shareholders, signalling ongoing investor sensitivity around capital allocation and governance; Chair Natasja Laheij said the strong backing for the remaining items underpins the group’s transformation strategy and focus on long-term shareholder value, as ASOS continues to implement its turnaround after what it described as meaningful progress in FY25.

The most recent analyst rating on (GB:ASC) stock is a Sell with a £2.10 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS Deputy Chair’s PCA Increases Stake with Fresh Share Purchases

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 between 14 and 16 January 2026. Following these purchases, Camelot Capital Partners’ holding has risen to 18,691,002 shares, a move that signals continued insider-linked confidence in the online fashion retailer and is disclosed in line with UK Market Abuse Regulations.

The most recent analyst rating on (GB:ASC) stock is a Sell with a £2.10 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS Discloses Further Share Purchases by Deputy Chair’s Associated Investor

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 Exchange between 8 and 13 January 2026, Camelot Capital acquired a total of 123,725 ordinary shares in the online fashion group, taking its holding to 18,579,124 shares and signalling continued insider-linked investor support in the company.

The most recent analyst rating on (GB:ASC) stock is a Hold with a £271.00 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

Insider-Linked Camelot Capital Increases Stake in ASOS

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 December 2025 and 2 January 2026. Following these transactions, Camelot Capital Partners now holds 18,473,399 ASOS shares, signalling continued confidence from an insider-linked investor and incrementally strengthening aligned ownership at the online fashion group in line with UK market abuse reporting requirements.

The most recent analyst rating on (GB:ASC) stock is a Hold with a £282.00 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS Launches 2025 Sharesave Plan to Engage Employees

ASOS Plc has launched the 2025 ASOS Plc Sharesave Plan (SAYE) for eligible employees, allowing them to subscribe for options over the company’s ordinary shares at a discounted exercise price. Chief Financial Officer Aaron Izzard participated in the scheme, which saw 254 employees granted a total of 1,466,578 options, representing 1.2% of the company’s issued share capital. This initiative is part of ASOS’s efforts to engage employees and align their interests with the company’s growth, potentially enhancing stakeholder value and strengthening its market position.

The most recent analyst rating on (GB:ASC) stock is a Hold with a £275.00 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS Publishes 2025 Annual Report and Announces AGM

ASOS Plc has released its Annual Report and Accounts for 2025 and announced its Annual General Meeting scheduled for January 22, 2026. The documents are available on the company’s website and have been submitted to the Financial Conduct Authority’s National Storage Mechanism for inspection. This release is part of ASOS’s commitment to transparency and provides stakeholders with detailed insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (GB:ASC) stock is a Hold with a £275.00 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS Plc Announces Total Voting Rights Update

ASOS Plc has announced that as of December 1, 2025, its issued and fully paid share capital consists of 119,613,848 ordinary shares, each with a nominal value of 3.5 pence and one voting right per share. The total number of voting rights in the company is also 119,613,848, which shareholders should use as a denominator for calculating their interest in the company as per FCA Disclosure and Transparency Rules. This announcement is crucial for stakeholders to understand their voting power and any changes in their shareholding, impacting their engagement and decision-making within the company.

The most recent analyst rating on (GB:ASC) stock is a Sell with a £2.10 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS Executives’ Share Awards Vest Under Long Term Incentive Scheme

ASOS Plc has announced the vesting of conditional awards under its Long Term Incentive Scheme for FY23, involving key executives José Antonio Ramos Calamonte and Aaron Izzard. The shares awarded have been partially sold to cover taxes and fees, with the remainder subject to a two-year holding period. This transaction reflects ASOS’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting the company’s market perception and stakeholder confidence.

The most recent analyst rating on (GB:ASC) stock is a Sell with a £2.10 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS Strengthens Leadership with New Audit Chair Appointment

ASOS Plc has announced the appointment of Jon Kamaluddin as an Independent Non-Executive Director and Chair of the Audit Committee, effective December 1, 2025. Jon’s extensive experience in international retail, finance, and technology, along with his previous roles at ASOS and other major companies, positions him as a valuable addition to the board. This strategic appointment follows Natasja Laheij’s transition to Company Chair, highlighting ASOS’s commitment to strengthening its leadership team and enhancing its governance structure.

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.

ASOS Reports Improved Profitability Amidst Sales Decline

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.

ASOS Secures Improved Financial Flexibility with Successful Loan Refinancing

ASOS has announced a successful refinancing of its Asset Backed Loan facility into a secured term loan and Delayed Draw Term Loan with a new syndicate of private lenders. This refinancing provides ASOS with improved financial terms, including an additional £87.5 million in liquidity headroom and a reduction in annual cash interest costs. The move strengthens ASOS’s balance sheet and enhances its financial flexibility, positioning the company to focus on the final phase of its turnaround strategy aimed at re-engaging customers and achieving sustainable profitability.

The most recent analyst rating on (GB:ASC) stock is a Sell 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.

ASOS Announces FY25 Results and Board Changes

ASOS Plc is set to announce its FY25 results on November 21, 2025, which will include strategic and financial updates. The company also confirmed changes in its Board, with Natasja Laheij succeeding Jørgen Lindemann as Chair and Jose Manuel Martínez Gutiérrez taking over as Senior Independent Director. These leadership changes are expected to influence ASOS’s strategic direction and operational focus, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (GB:ASC) stock is a Sell 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.