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ASOS plc (GB:ASC)
LSE:ASC

ASOS plc (ASC) AI Stock Analysis

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GB:ASC

ASOS plc

(LSE:ASC)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
282.00p
▼(-6.16% Downside)
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
Debt Reduction and Restructuring
The reduction and restructuring of debt enhance ASOS's financial flexibility and liquidity, supporting long-term stability and growth.
Gross Margin Improvement
Improved gross margins indicate better cost management and pricing power, contributing to sustainable profitability.
Expansion of Test & React Model
Expanding the Test & React model allows ASOS to quickly adapt to market trends, enhancing competitive advantage and customer satisfaction.
Negative Factors
Decline in GMV
A decline in GMV suggests challenges in maintaining sales volume, which could impact revenue growth and market position.
Challenges in the U.S. Market
Significant challenges in the U.S. market may hinder ASOS's international expansion efforts and limit growth opportunities.
High Leverage
High leverage poses financial risks, especially in volatile markets, potentially affecting ASOS's ability to invest in growth initiatives.

ASOS plc (ASC) vs. iShares MSCI United Kingdom ETF (EWC)

ASOS plc Business Overview & Revenue Model

Company DescriptionASOS 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 MoneyASOS 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 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.
Q4-2025 Updates
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.
Debt Reduction and Restructuring
Net debt was reduced by approximately 40%, with a successful restructuring providing more flexibility and liquidity.
Increase in Profitability
Adjusted EBITDA improved by over GBP 50 million to GBP 132 million, reflecting a 60% increase in profitability.
Gross Margin Improvement
Gross margin increased by 370 basis points, reaching over 47%.
Expansion of Test & React and Flexible Fulfillment
The Test & React model now makes up more than 20% of the business, and flexible fulfillment models account for more than 10%.
Positive Consumer Engagement
New consumer growth in the U.K. is up by approximately 10%, and retention rates have improved by 80 basis points among top consumers.
Launch of Loyalty Program ASOS.WORLD
The program has reached over 1.6 million members and shows positive impacts on consumer frequency and engagement.
Negative Updates
Decline in GMV
GMV reduced by 12% year-on-year due to cautious consumer backdrop and deliberate profitability actions.
Challenges in the U.S. Market
The U.S. market saw an 18% decline in GMV, attributed to deep profitability actions and fulfillment changes.
Cost to Serve Increase
Cost to serve increased by 130 basis points, although there was a 12% reduction in absolute terms.
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
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
45
Neutral
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
50
Neutral
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
55
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.46B2.46B2.90B3.54B3.94B3.91B
Gross Profit995.10M995.10M1.08B1.39B1.57B1.64B
EBITDA-47.70M-47.70M-153.60M-79.50M140.90M325.80M
Net Income-298.40M-298.40M-338.70M-223.10M-30.80M128.40M
Balance Sheet
Total Assets1.67B1.67B2.27B2.63B3.00B2.88B
Cash, Cash Equivalents and Short-Term Investments318.90M318.90M382.90M353.30M323.00M662.70M
Total Debt728.10M728.10M977.70M1.00B856.00M792.10M
Total Liabilities1.46B1.46B1.75B1.76B1.98B1.85B
Stockholders Equity212.40M212.40M521.30M866.70M1.01B1.03B
Cash Flow
Free Cash Flow117.80M117.80M160.30M-190.60M-313.50M52.60M
Operating Cash Flow125.70M125.70M196.70M-12.70M-130.60M209.70M
Investing Cash Flow49.10M49.10M-133.50M-177.90M-182.90M-443.50M
Financing Cash Flow-246.90M-246.90M-26.00M222.70M-26.30M489.10M

ASOS plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price300.50
Price Trends
50DMA
259.72
Positive
100DMA
264.52
Positive
200DMA
286.01
Positive
Market Momentum
MACD
10.58
Negative
RSI
66.44
Neutral
STOCH
57.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ASC, the sentiment is Positive. The current price of 300.5 is above the 20-day moving average (MA) of 283.10, above the 50-day MA of 259.72, and above the 200-day MA of 286.01, indicating a bullish trend. The MACD of 10.58 indicates Negative momentum. The RSI at 66.44 is Neutral, neither overbought nor oversold. The STOCH value of 57.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ASC.

ASOS plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£2.36B15.15121.78%3.99%3.78%3.29%
63
Neutral
£623.05M51.437.52%13.21%-54.35%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
£770.65M-4.31-18.75%-20.36%44.33%
59
Neutral
£345.78M-1.20-81.34%-14.89%12.08%
56
Neutral
£668.61M14.951.40%3.94%
46
Neutral
£283.25M-1.41-172.24%-65.42%27.73%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ASC
ASOS plc
300.50
-105.30
-25.95%
GB:DNLM
Dunelm Group
941.50
46.11
5.15%
GB:DEBS
boohoo group Plc
22.00
-7.42
-25.22%
GB:AO
AO World
108.00
7.20
7.14%
GB:THG
THG
43.18
3.30
8.27%
GB:MOON
Moonpig Group Plc
213.00
5.81
2.80%

ASOS plc Corporate Events

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 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.

Business Operations and Strategy
ASOS Launches 2025 Sharesave Plan to Engage Employees
Positive
Dec 12, 2025

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.

Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
ASOS Publishes 2025 Annual Report and Announces AGM
Neutral
Dec 8, 2025

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.

Regulatory Filings and Compliance
ASOS Plc Announces Total Voting Rights Update
Neutral
Dec 1, 2025

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.

Business Operations and StrategyExecutive/Board Changes
ASOS Executives’ Share Awards Vest Under Long Term Incentive Scheme
Neutral
Nov 25, 2025

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.

Executive/Board Changes
ASOS Strengthens Leadership with New Audit Chair Appointment
Positive
Nov 21, 2025

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.

Business Operations and StrategyFinancial Disclosures
ASOS Reports Improved Profitability Amidst Sales Decline
Positive
Nov 21, 2025

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.

Business Operations and StrategyPrivate Placements and Financing
ASOS Secures Improved Financial Flexibility with Successful Loan Refinancing
Positive
Nov 13, 2025

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.

Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
ASOS Announces FY25 Results and Board Changes
Neutral
Nov 13, 2025

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.

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.Date of analysis: Dec 19, 2025