ASOS (LON:ASC) Issues Earnings Results

ASOS (LON:ASC) released its quarterly earnings results on Thursday. The company reported GBX 41.60 EPS for the quarter, Digital Look Earnings reports. The company had revenue of GBX 224.56 billion for the quarter. ASOS had a negative net margin of 10.10% and a negative return on equity of 155.17%.

Here are the key takeaways from ASOS’s conference call:

• ASOS reported FY2026 adjusted EBITDA of £170 million, up 29%, with gross margin rising 340 basis points to 50.5% and adjusted EBITDA margin reaching 7.6%. The company said it returned to GMV growth in Q4 after -9% in H1 and -1% in H2.
• Management expects low-single-digit GMV growth, further EBITDA improvement and positive free cash flow in FY2027. It said the active customer database continued to grow at the start of the year, despite disruption from the October cyber incident.
• Net debt fell 40% year on year to its lowest level in five years, supported in part by £116 million from selling two non-core warehouses. The company said its remaining fulfillment centers have capacity for order growth of more than 30%.
• Free cash flow was a £16 million outflow, slightly below expectations, due partly to working-capital timing; management cited a £9 million tariff refund received after year-end. ASOS expects positive free cash flow in FY2027 but did not provide an absolute forecast range.
• The October cyber incident prompted ASOS to pause some marketing and CRM activity, which management estimates reduced GMV by 2%–4% during the affected weeks, mainly in the U.K. The company said its investigation found that only basic personal information was accessed, with no passwords or payment-card details.

ASOS Price Performance

Shares of ASC stock traded up GBX 2 on Friday, reaching GBX 416.50. 622,762 shares of the company were exchanged, compared to its average volume of 4,075,503. The company has a market cap of £498.34 million, a price-to-earnings ratio of -2.16, a P/E/G ratio of -1.26 and a beta of 2.32. The business has a 50-day moving average price of GBX 443.17 and a 200 day moving average price of GBX 327.50. The company has a debt-to-equity ratio of 855.63, a quick ratio of 0.39 and a current ratio of 0.95. ASOS has a 1 year low of GBX 206.50 and a 1 year high of GBX 517.

Wall Street Analysts Forecast Growth

ASC has been the subject of a number of analyst reports. Shore Capital Group reiterated a “buy” rating and issued a GBX 520 price objective on shares of ASOS in a research report on Thursday. Royal Bank Of Canada raised their target price on ASOS from GBX 275 to GBX 400 and gave the company a “sector perform” rating in a research report on Wednesday, August 5th. Berenberg Bank restated a “buy” rating and issued a GBX 750 price target on shares of ASOS in a research note on Thursday. Finally, Deutsche Bank Aktiengesellschaft upped their price target on ASOS from GBX 450 to GBX 490 and gave the stock a “buy” rating in a report on Friday. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of GBX 453.57.

ASOS News Roundup

Here are the key news stories impacting ASOS this week:

• Positive Sentiment: ASOS swung to an annual pre-tax profit as its turnaround strategy began to show results. Quarterly sales returned to growth, while FY2026 EBITDA rose 29% to £170.3 million. The company also provided FY2027 guidance. ASOS Swings To Annual Pre-tax Profit, Provides FY27 Guidance
• Positive Sentiment: Deutsche Bank upgraded ASOS to “buy” and raised its price target to GBX 490 from GBX 450, citing the company’s recovery. Shore Capital and Berenberg also reaffirmed “buy” ratings, with targets of GBX 520 and GBX 750, respectively. ASOS recovery prompts Deutsche Bank upgrade, but Panmure Liberum remains cautious
• Neutral Sentiment: Deutsche Bank’s more positive stance is not shared across the market: Panmure Liberum remains cautious, highlighting mixed analyst expectations for the recovery. ASOS recovery prompts Deutsche Bank upgrade, but Panmure Liberum remains cautious
• Negative Sentiment: A cyberattack disrupted trading and weighed on the business, presenting a near-term headwind even as sales and margins improved. ASOS returns to growth as annual losses narrow and cyberattack disruption weighs on trading

ASOS Company Profile

ASOS Plc operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark, Poland, and internationally. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS Luxe, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge, HIIT, AsYou, Dark Future, UNRVLLD/SPPLY, Crooked Tongues, Daysocial, Actual, and Weekend Collective brands, as well as through third-party brands.