Asos shares surged 13.48% (28.59p) to 240.58p this morning, according to multiple reports. The jump came after the company reported a 50% increase in adjusted EBITDA year-on-year for the six months to 1 March, and adjusted operating losses narrowed to £18.3m from £39.6m. Asos reiterated its full-year guidance targeting underlying profits of £150m to £180m.
However, sales fell 14% to £1.1bn over the period, and total goods sold slipped 9% year-on-year, improving from a 12% decline in the previous full year. Adjusted gross margin grew by 330 basis points to 48.5%. Active customers fell 9% to 16.5 million, but March marked the first month of group-level new customer growth since 2021, with new customer growth of 9%.
Asos deepened its alliance with Microsoft, embedding AI into design, buying, and customer service, reducing cost per contact by over 90%, according to reports. The company also moved its supply chain closer to delivery markets, sourcing products for the UK from Turkey and Morocco. Asos repaid convertible bonds due 2026 in full for £73.6m, while net debt excluding leases increased by £19m year-on-year to £295m.
Chief Executive José Antonio Ramos Calamonte said the first half shows continued progress on executing strategic priorities. He noted improvements in new customer growth and strong performance in womenswear as encouraging lead indicators for sales growth. Asos has not yet seen any impact on consumer confidence amid the Iran war, according to Calamonte. The company took proactive actions to mitigate inflationary impacts and supply chain issues from the conflict. Asos also kick-started a process to pursue a refund for £7m paid due to Donald Trump's tariffs last year.