ASOS reported a significant reduction in operating losses for the six months ending 1 March 2026, narrowing them by 52% to £100.9 million, despite a decline in overall revenue. The results reflect a period of operational restructuring, strategic investment and gradual improvement in customer metrics. A key contributor to performance was the company’s continued shift toward a more responsive product model, with its “Test & React” (T&R) approach further expanded during the 26 weeks to 1 March 2026.
The relaunch of its own-brand activewear label, 4505, delivered 20% growth in gross merchandise value (GMV), supported by new partnerships and a stronger presence in the sportswear segment. Additionally, ASOS Fulfilment Services (AFS), introduced in the second half of FY25, gained traction, increasing its contribution to third-party GMV and onboarding new partner brands. The broader partner brand portfolio also expanded, with around 60 new brands added, including a growing share in the Face + Body category.
The company also focused on enhancing its customer experience, particularly through its mobile app. Approximately 50 updates were introduced, shifting the platform toward a more personalised shopping journey powered by artificial intelligence. Early indicators suggest these changes have improved engagement, with increases in both net sales per customer and order frequency.
Customer metrics showed signs of recovery. New customer growth returned to positive territory, rising 2% year-on-year on a six-month rolling basis, compared with a decline at the end of the previous financial year. Operational efficiency improvements played a central role in cost reduction.
Supply chain costs declined due to warehouse optimisation and renegotiated logistics contracts, continuing a multi-year trend of efficiency gains. Changes to the returns policy also contributed to improved performance by reducing return rates through increased transparency and customer guidance. External pressures, including newly introduced US tariffs and ongoing geopolitical challenges affecting supply chains, added costs during the period.
However, the company reported that these were managed through operational adjustments, limiting their impact on service levels and customer experience. Looking ahead, ASOS stated that current trading remains in line with expectations. GMV growth has continued to improve, and new customer acquisition accelerated in March.
The company has maintained its full-year guidance, projecting continued margin improvement and adjusted EBITDA of between £150 million and £180 million. Overall, the results indicate progress in restructuring efforts, with improvements in efficiency, customer engagement and product strategy partially offsetting ongoing revenue challenges.