As Asos teases ‘a significant improvement in profitability in H1 FY25’ ahead of its results set to be released on Thursday 24 April 2025, the fashion etailer has been named Leading in the RetailX UK500.
The etailer says it is well placed for growth following a two-year transformation programme. During that time, the UK-headquartered fast fashion retailer focused on the customer experience, disciplined stock management and fast product development through a test-and-react strategy.
Founded in 2000, Asos now sells to more than 200 markets. In its latest financial year, to 1 September 2024, it reported group revenue of £2.9bn (-18% on the previous year) and a pre-tax loss of £379.3mn that widened from £296.7mn[1] the previous year as a result of write-downs related to excess stock, a mothballed fulfilment centre and underperforming brands. Asos pointed to profitability at the adjusted EBITDA level of £80.1mn, down from £124.5mn a year earlier.
Sales in its core UK market came in at £1.27bn, 12% down on the previous year against a background of cost-of-living issues.
Asos chief executive José Antonio Ramos Calamonte said at the time that the retailer had achieved its key priorities for the year by reducing inventory and improving adjusted EBITDA, while selling its Topman and Topshop brands to a joint venture and going through a refinancing.
“Our product is now in the strongest position it has been in years,” he said, “with the right level of newness to excite customers, and we have fundamentally improved our profitability through a relentless focus on operational efficiency. With these solid foundations in place, we can focus on delivering experiences that delight our 20mn customers.”
That focus includes a test-and-react approach to own brand launches, a new customer loyalty programme, and a social media and influencer marketing programme.
On its website, Asos flags a discount for first-time visitors, encourages shoppers to download its app for exclusive discounts and the latest product drops and offers next-day delivery and returns through its Asos Premier scheme.
Asos Marketplace, which launched in 2010 to enable customers to buy from independent brands and vintage boutiques, is to close in April. Asos has a social media presence on Facebook, Instagram and Pinterest. It features customer images on an Instagram gallery on its website.
Asos targets net zero by 2030, offers advice and product suggestions on the Style Feed and works with Thrift+ to give shoppers credits that they can spend when they clear out their second-hand products. Asos places itself in a minority of UK500 brands by offering rentals through Hirestreet, including a monthly subscription option.
This is one of eight profiles in RetailX UK500 2025 report, authored by Chloe Rigby. Tesco, Amazon, Next, John Lewis, Cotswold Outdoor, Watches of Switzerland and Simba are all studies to show how leading retailers are innovating in today’s fast-paced environment.
The 11th annual report evaluates the performance of retailers, brands and marketplaces selling in the UK. Going beyond simple turnover or traffic, the UK500 measures how these businesses deliver value across the entire retail ecosystem, taking into account evolving consumer behaviour, economic headwinds and disruptive technologies such as AI.
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