Asos shares jump as celebrates adjusted earnings growth

Asos PLC on Wednesday said its focus remained on ‘sustainable, profitable growth’ as it reported an on-year decline in gross merchandise value, while adjusted earnings are climbing comfortably.

The London-based online fashion retailer said gross merchandise value was down 9% on-year, while GMV for its core UK business fell 5%, outperforming the group.

Meanwhile, in the first quarter of 2026, GMV was up four percentage points compared to the fourth quarter of 2025, followed by a further increase of two percentage points in the second quarter of 2026.

The company highlighted that womenswear, a ‘priority’ category, delivered a 10 percentage point improvement in its growth rate during the first financial half when compared to the second half of financial year 2025.

For the six months to March 1, Asos announced a 50% on-year increase in adjusted earnings before interest, tax, depreciation and amortisation. That is despite a negative impact of IEEPA tariffs, boosted by improved gross margin, lower returns rate and ‘continued cost discipline.’

IEEPA stands for US tariffs via the International Emergency Economic Powers Act of 1977, which US President Donald Trump started in February 2025, with a larger package of import duties announced on April 2 that year.

Meanwhile, Asos’s adjusted gross margin improved by 330 basis points on-year to 48.5% in the first financial half.

The company reiterated its guidance for the current financial year ending August 31.

For financial 2026, Asos anticipates adjusted Ebitda of £150 million to £180 million, between 14% and 37% higher than £131.6 million in financial 2025.

Further, it expects GMV to show an improving trajectory throughout financial 2026, between three and four percentage points ahead of revenue.

Chief Executive Officer Jose Calamonte said: ‘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.’

Asos shares rose 13% to 239.50 pence each on Wednesday morning in London.

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