ASOS points to stronger margins as quarterly merchandise sales return to growth

ASOS ($ASC-LSE) expects its annual gross margin to exceed 50%, above the previous 48–50% range, and adjusted EBITDA to finish above the midpoint of its £150–180 million guidance. Fourth-quarter gross merchandise value returned to low-single-digit growth, although the full-year measure remained around 5% lower. The update points to improved trading quality rather than a complete recovery in annual sales activity.

The retailer said its active-customer base grew during the quarter for the first time since 2022, reaching 16.4 million. Net debt declined to approximately £110 million from £184.7 million. Better sourcing, full-price selling and fulfillment contributed to the stronger margin outlook. Gross merchandise value measures customer purchases across the platform and is not interchangeable with ASOS’s reported revenue.

Sources:

• Alliance News / AJ Bell — ASOS pre-close update