Business
Full Year Trading Update
Full Year Trading Update.
About this update from Asos Plc
[{"type":"text","content":"\n\n30 September 2025\nASOS Plc\n(\"ASOS\" or the \"Company\")\n \nFull Year Trading Update\n \nIn FY25, ASOS made significant strategic progress, focused on building sustainably profitable and resilient foundations. Its deliberate, multi-year turnaround has involved three distinct but overlapping stages:\n1) Dealing with the legacy of the old model: ASOS first addressed the significant legacy issues to improve its capital allocation - successfully clearing its excess stock, reducing its warehouse footprint and strengthening the balance sheet.\n2) Building the new commercial model: At the same time, ASOS also transitioned to a comprehensively more disciplined, agile way of working, retooling the way it operates - from how it designs and buys product, to how it manages stock newness and returns - to deliver healthier full-price sales. The Company has also undertaken a more targeted approach to its customer proposition by market, a disciplined business-wide review and subsequent renegotiation of key supplier contracts, and a structural reset of its fixed cost base to support its new model, creating the headroom to reinvest in growth. Together, these changes establish a structurally higher gross margin profile and stronger, more profitable underlying economic model that ASOS can grow in a sustainable fashion.\n3) Re-engaging customers: With stronger foundations in place, the final phase is regaining the hearts and minds of customers at scale, starting with its core customers in its core markets.\nAs it entered FY25, ASOS had essentially completed phase one, having significantly reduced and comprehensively refinanced its net debt at the beginning of the year, announcing further efficiencies to its global distribution network with the mothballing of its Atlanta fulfilment centre, and reducing its inventory position by more than 60% since the end of FY22 (from £1.1bn to c.£400m). Having concurrently scaled its new commercial model and rebuilt its variable and fixed cost base - stage two of this process - it had planned to shift gears to the final stage earlier in FY25. Instead, more opportunity to reduce fixed costs and drive further variable cost optimisation were explored and the business focus remained on securing even stronger profitability foundations that will deliver further material ...