Asos returns to GMV growth in Q4 and exceeds EBITDA guidance for FY26

UK online fashion retailer Asos has released a trading update for the financial year ended August 30, 2026, reporting a return to gross merchandise value (GMV) growth in the fourth quarter and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) above the midpoint of its guided range of 150 million to 180 million pounds.

The retailer recorded an adjusted EBITDA increase of more than 25 percent year-over-year (YoY), supported by an improved gross margin, a lower returns rate and continued cost discipline. Adjusted gross margin for the year exceeded 50 percent, surpassing both the company’s full-year guided range of 48 percent to 50 percent and its medium-term guidance.

For the full year, GMV declined 5 percent YoY. However, the performance improved sequentially every quarter, reaching low-single-digit growth in the fourth quarter.

Active customer base reaches inflection point

Active customers stood at 16.4 million at year-end, compared to 16.5 million at the end of the first half of the financial year. Both the UK and Germany saw active customer growth compared to the first half. In addition, total fourth-quarter customers grew compared to the third quarter, marking the first quarterly increase since the second quarter of the 2022 financial year.

Geographically, GMV performance improved half-on-half across all territories. The UK and Germany posted positive GMV growth in the second half of the year, while the US market returned to growth in the fourth quarter.

By category, womenswear achieved full-year GMV growth of 3 percent YoY, accelerating to 8 percent in the second half of 2026. Growth was propelled by partner brands and priority own labels, including Topshop, Arrange and 4505.

“We are pleased to have delivered FY26 adjusted EBITDA in the upper half of our guided range, together with sequential improvement in quarterly GMV growth and gross margin above our 50% medium term target,” said José Antonio Ramos Calamonte, chief executive officer at Asos.

“Through consistent delivery over recent years, we have strengthened our balance sheet, materially improved profitability and reached an inflection point in our Q4 active customer base, driven by new customer acquisition.”

Operational updates and balance sheet strengthening

Asos reported progress across its three strategic pillars: Relevant Fashion Product, Inspirational Shopping Experience and Efficient Operating Model.

Under its product strategy, the company recorded a record sell-through rate for the spring/summer 2026 (SS26) range, which increased four percentage points YoY. Asos also expanded its partner brand portfolio by adding a net total of approximately 30 new brands. Flexible fulfillment models, such as ASOS Fulfilment Services and Partner Fulfils, expanded by more than 10 percentage points YoY to represent 21 percent of partner brands GMV.

Within its customer experience pillar, the retailer introduced over 100 app enhancements and rolled out artificial intelligence-led personalisation in search, which drove higher conversion rates. Customers exposed to the updated app features generated revenue per customer growth approximately 10 percentage points ahead of the wider iOS customer base over the same period.

On the operational front, supply chain cost-to-serve was reduced by more than 130 basis points YoY. Key drivers included the renewal of UK and European carrier contracts, further warehouse automation in Berlin, and moving US fulfillment operations to Barnsley. The company also completed the sale of its non-core fulfilment centres in Lichfield and Atlanta, generating approximately 116 million pounds in cash inflows and annual cash cost savings of around 12 million pounds.

Asos will publish its full-year results for the period ended August 30, 2026, on November 5, 2026.