UK's ASOS FY26 adjusted EBIT beats expectations on higher profit per order
Overview
UK online fashion retailer's FY26 revenue fell 9% yr/yr, meeting analyst expectations
Adjusted EBIT and adjusted pretax loss for FY26 both beat analyst estimates
Company improved gross margin and reduced net debt, citing operational efficiencies
Outlook
ASOS expects low-single digit GMV growth in FY27
Company guides for FY27 adjusted EBITDA of £180-200 mln
ASOS expects positive free cash flow generation in FY27
Result Drivers
GROSS MARGIN IMPROVEMENT - Co said gross margin rose 340bps to 50.5%, driven by better buying and sourcing, expansion of flexible fulfilment models, and focus on full-price sales through disciplined inventory management
SUPPLY CHAIN EFFICIENCIES - Co attributed 28% improvement in profit per order and lower cost to serve to productivity and efficiency gains in its fulfilment network, despite some operational disruptions
MARKETING AND CUSTOMER EXPERIENCE INVESTMENT - Co said increased marketing spend and enhancements to the app and personalisation drove higher engagement and revenue per customer
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Meet | GBP 2.25 bln | GBP 2.25 bln (12 Analysts) |
FY Gross Margin | 50.60% | ||
FY Adjusted EBIT | Beat | GBP 18.80 mln | GBP 11.88 mln (6 Analysts) |
FY Adjusted Pretax Loss | Beat | GBP 46.40 mln | GBP 54.18 mln (10 Analysts) |
FY Pretax Profit | GBP 24.40 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the department stores peer group is "buy."
Wall Street's median 12-month price target for ASOS PLC is GBp462.50, about 9.6% above its November 4 closing price of GBp422.00
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)