ASOS FY26 results: womenswear leads return to growth as earnings rise 29%
By Simran KaurFashion Writer, Peepals Shakti
Representative image: jarmoluk / Pixabay
ASOS said on 5 November 2026 that adjusted EBITDA rose 29% to £170.3 million as sales returned to growth in Q4, with womenswear GMV up 8% in the second half.
What Happened
ASOS, the UK online fashion retailer, said on Thursday, 5 November 2026, that its adjusted earnings rose 29% in the year to 30 August 2026 even though its sales fell, and that sales returned to growth in the final quarter. Adjusted EBITDA, a measure of profit before interest, tax, depreciation and one-off items, rose to £170.3 million from £131.6 million. Gross merchandise value (GMV), the total value of goods sold through the platform, fell 5% to £2,349.0 million for the year but grew at a low single-digit rate in the fourth quarter. Womenswear, which the company treats as a priority, was the strongest part of the business, according to its trading updates.
Key Facts
- Period: 52 weeks to 30 August 2026 (financial year 2026), results published 5 November 2026.
- GMV: £2,349.0 million, down 5% year on year; the decline narrowed to 1% in the second half, and the fourth quarter returned to low single-digit growth.
- Adjusted revenue: £2,240.3 million.
- Adjusted EBITDA: £170.3 million, up 29% from £131.6 million; margin 7.6% against 5.3%.
- Adjusted gross margin: up 340 basis points (3.4 percentage points) to 50.5%.
- Womenswear: GMV up 3% for the year, accelerating to 8% in the second half, according to the company's pre-close update.
- Outlook for financial year 2027: low single-digit GMV growth and adjusted EBITDA of £180 million to £200 million.
Why It Matters
ASOS has been trying to turn its business around, and these results show where that effort stands in numbers. Total sales were still lower than a year earlier, but the company kept more of every pound it sold, and the business started growing again in the last quarter. The rise in gross margin to just over half of sales is the clearest sign that it is relying less on markdowns.
The womenswear figures are the part most relevant to readers who follow how women shop for clothes. Womenswear grew while the group as a whole shrank, and its growth sped up in the second half of the year. That suggests its ranges for women are winning back custom faster than the rest of the business. The company has named the UK, Germany, France and the US as its key markets for growth, according to reports on the results.
The results also say something about online fashion more broadly. A retailer that can grow margins while sales fall, and then return to growth, is showing one way through a difficult market: fewer but more profitable sales. Whether ASOS can turn low single-digit growth into something stronger is the test for its next financial year.
For readers following online fashion businesses in India, the ASOS numbers are a reminder that profit in online clothing can improve even in a year when sales fall, through margins rather than volume.
Peepals calculation: Adjusted EBITDA rose from £131.6 million to £170.3 million, an increase of about 29.4% (170.3 ÷ 131.6 ≈ 1.294). Dividing £170.3 million by adjusted revenue of £2,240.3 million gives the reported 7.6% margin (170.3 ÷ 2,240.3 ≈ 0.076). The FY27 outlook of £180 million to £200 million would mean adjusted EBITDA growth of roughly 6% to 17% on this year's figure (180 ÷ 170.3 ≈ 1.057; 200 ÷ 170.3 ≈ 1.174). Our calculation from the reported figures.
| Measure | FY2026 | Change |
|---|---|---|
| Gross merchandise value | £2,349.0m | down 5% |
| Adjusted EBITDA | £170.3m | up 29% |
| Adjusted EBITDA margin | 7.6% | from 5.3% |
| Adjusted gross margin | 50.5% | up 340 bps |
| Womenswear GMV | not given | up 3% (8% in H2) |
Impact
Short-term: ASOS enters its new financial year with sales growing again and a higher margin, and it is guiding to adjusted EBITDA of £180 million to £200 million.
Long-term: If the fourth-quarter growth holds, the company will have moved from shrinking to growing while keeping its improved margins, the goal of its turnaround.
Who is affected: ASOS shoppers, especially women buying clothes online; its suppliers and brand partners; its employees; and investors.
What to watch next: Trading in ASOS's financial year 2027, against its guidance of low single-digit GMV growth.
Key Takeaway
ASOS's sales fell 5% in the year to 30 August 2026, but adjusted EBITDA rose 29% to £170.3 million, sales grew again in the fourth quarter, and womenswear led the recovery.
Questions and Answers
What were ASOS's FY26 results?
For the 52 weeks to 30 August 2026, ASOS reported GMV of £2,349.0 million, down 5%, and adjusted EBITDA of £170.3 million, up 29% from £131.6 million. Adjusted gross margin rose to 50.5%.
Is ASOS growing again?
Yes, at the end of the year. GMV fell 1% in the second half and returned to low single-digit growth in the fourth quarter, and the company expects low single-digit growth in financial year 2027.
How did ASOS womenswear perform?
According to the company's pre-close update, womenswear GMV rose 3% for the year and 8% in the second half, faster than the group as a whole.
What is ASOS's outlook for 2027?
ASOS expects low single-digit GMV growth and adjusted EBITDA of £180 million to £200 million in its 2027 financial year.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Simran Kaur, Fashion WriterCovers Fashion and more for Peepals Shakti. All stories by Simran Kaur
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Simran Kaur is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
