Shares in ASOS Plc have risen almost 13% (writing at 2.30pm) after it announced a positive trading update this morning.
The online fashion giant said it expected to report an approximate 50% improvement in EBITDA year-on-year for the half-year period ended 1st March 2026.
ASOS said it had reduced fixed costs by more than 10% YoY and also reduced total supply chain costs.
It reiterated its FY26 guidance.
This includes gross merchandise value to show an improving trajectory throughout the year, 3-4ppts ahead of revenue; gross margin improvement of at least 100bps to 48-50%; adjusted EBITDA of £150m-£180m; and a broadly neutral free cash flow.
Shares are currently trading at 239 pence and climbed as high as 247p earlier today.
“Our first half shows continued progress on executing our strategic priorities across relevant fashion product, inspirational shopping experience and an efficient operating model,” said CEO José Antonio Ramos Calamonte.
“The result has been a c.50% YoY increase in underlying profitability. The enhancements we have made to the customer experience, including our revitalised app, are helping people to find not just items, but outfits, styled just for them.
“We are seeing improvements in new customer growth and strong performance in our womenswear business, both of which are encouraging lead indicators for sales growth.
“With an accelerated cadence of initiatives still to come this year, we are well positioned to deliver further improvements for customers and the business as our focus remains on sustainable, profitable growth.”