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ASOS plc
(LSE:ASC)
Select Model
Select Model
Rating:54Neutral
Price Target:
499.00 p
▲(18.81% Upside)
Action:Reiterated
Date:09/25/26
The score is held back primarily by weak financial performance (declining revenue, ongoing losses, and high leverage), partially offset by improving free cash flow. Technicals are supportive due to a strong uptrend, but overbought indicators increase near-term risk. Valuation is unattractive/unclear given a negative P/E and no dividend yield data.
Positive Factors
Diversified Product Model
Combining ASOS-designed products with third-party brands gives the company multiple ways to serve fashion-conscious customers and manage assortment breadth. This model can support customer relevance, cross-selling, and product-mix flexibility across changing fashion preferences over the next several quarters.
Negative Factors
Declining Revenue
Revenue contraction indicates weakening sales momentum in the core retail business and can reduce operating leverage across the platform. Persistent top-line decline would make it harder to absorb fixed fulfilment, technology, and marketing costs while rebuilding sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Product Model
Combining ASOS-designed products with third-party brands gives the company multiple ways to serve fashion-conscious customers and manage assortment breadth. This model can support customer relevance, cross-selling, and product-mix flexibility across changing fashion preferences over the next several quarters.
Read all positive factors
ASOS plc (ASC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£532.44M
Dividend YieldN/A
Average Volume (3M)663.54K
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth-15.00%
EPS Growth21.71%
CountryUK
Employees2,800
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-1.94
Shares Outstanding119,821,460
10 Day Avg. Volume276,008
30 Day Avg. Volume663,542
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.57
Price to Sales (P/S)0.14
P/FCF Ratio2.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£474.29Price Target Upside12.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.19
Revenue Forecast (FY)£2.26B
ASOS plc Business Overview & Revenue Model
Company Description
ASOS Plc functions as an international online apparel company, offering a wide array of clothing for both women and men. The firm distributes products through its proprietary labels such as ASOS Design, ASOS Edition, ASOS 4505, Collusion, Reclaime...
How the Company Makes Money
ASOS makes money primarily by selling products directly to consumers online. Its core revenue stream is net sales from orders placed on its e-commerce sites and apps, which include (1) sales of ASOS own-brand merchandise (designed and sourced by A...
ASOS plc Earnings Call Summary
Earnings Call Date:Nov 21, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
ASOS has made significant strides in reducing stock and debt, improving profitability, and increasing consumer engagement. Despite a decline in GMV and some challenges in the U.S. market, the company has a clear strategic direction with positive developments in its Test & React model, flexible fulfillment, and loyalty program.Positive Updates
Significant Reduction in Stock
ASOS has reduced its stock from GBP 1.1 billion to less than GBP 400 million, a decrease of between 50 million and 70 million units over three years.
Negative Updates
Decline in GMV
GMV reduced by 12% year-on-year due to cautious consumer backdrop and deliberate profitability actions.
Read all updates
Q4-2025 Updates
Positive
Negative
Significant Reduction in Stock
ASOS has reduced its stock from GBP 1.1 billion to less than GBP 400 million, a decrease of between 50 million and 70 million units over three years.
Read all positive updates
Company Guidance
During the call, ASOS provided guidance for fiscal year '26, emphasizing an expected improvement in GMV trajectory and projecting a gross margin expansion of at least 100 basis points, surpassing 48%. The company anticipates adjusted EBITDA to range between GBP 150 million and GBP 180 million, driven by continued efficiency improvements and a focus on profitability without necessitating a return to growth. ASOS reported reducing its stock to just over GBP 400 million and net debt to GBP 185 million. The company highlighted a successful structural refinancing, extending the term to 2030, increasing liquidity by GBP 87.5 million, and reducing interest rates, resulting in cash interest benefits of approximately GBP 5 million. ASOS showcased a strategic focus on enhancing its customer proposition with AI-driven personalization, expanding its Test & React model to 25% of its business, and increasing flexible fulfillment to 15%. The company also expressed confidence in its ability to achieve medium-term goals, including an adjusted EBITDA margin of 8% and sustainable structural free cash flow generation.ASOS plc Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.29B | 2.46B | 2.90B | 3.54B | 3.94B | 3.91B |
| Gross Profit | 953.60M | 995.10M | 1.08B | 1.39B | 1.57B | 1.64B |
| EBITDA | 135.30M | -47.70M | -153.60M | -79.50M | 140.90M | 325.80M |
| Net Income | -230.90M | -298.40M | -338.70M | -223.10M | -30.80M | 128.40M |
Balance Sheet | ||||||
| Total Assets | 1.43B | 1.67B | 2.27B | 2.63B | 3.00B | 2.88B |
| Cash, Cash Equivalents and Short-Term Investments | 209.50M | 318.90M | 382.90M | 353.30M | 323.00M | 662.70M |
| Total Debt | 729.00M | 728.10M | 977.70M | 1.00B | 856.00M | 792.10M |
| Total Liabilities | 1.34B | 1.46B | 1.75B | 1.76B | 1.98B | 1.85B |
| Stockholders Equity | 85.20M | 212.40M | 521.30M | 866.70M | 1.01B | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | 106.60M | 117.80M | 160.30M | -190.60M | -313.50M | 52.60M |
| Operating Cash Flow | 111.40M | 125.70M | 196.70M | -12.70M | -130.60M | 209.70M |
| Investing Cash Flow | -79.30M | 49.10M | -133.50M | -177.90M | -182.90M | -443.50M |
| Financing Cash Flow | -42.90M | -246.90M | -26.00M | 222.70M | -26.30M | 489.10M |
ASOS plc Technical Analysis
Neutral
420.00
Price Trends
439.91
Negative
385.89
Positive
321.98
Positive
Market Momentum
0.60
Positive
43.77
Neutral
18.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ASC, the sentiment is Neutral. The current price of 420 is below the 20-day moving average (MA) of 465.55, below the 50-day MA of 439.91, and above the 200-day MA of 321.98, indicating a neutral trend. The MACD of 0.60 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 18.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ASC.
ASOS plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £1.77B | 11.42 | 99.65% | 8.02% | 3.08% | -0.16% | |
67 Neutral | £509.56M | 14.45 | 21.65% | 0.02% | 11.35% | 247.54% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £844.66M | 18.02 | -99.49% | 1.29% | 6.54% | ― | |
54 Neutral | £532.44M | -2.29 | -155.17% | ― | -15.00% | 21.71% | |
51 Neutral | £722.53M | -9.98 | -16.03% | ― | 10.14% | 57.54% | |
49 Neutral | £398.44M | -5.37 | 415.28% | ― | 120.30% | 66.52% |
* Consumer Cyclical Sector Average
GB:ASC
ASOS plc
445.00
178.50
66.98%
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ASOS plc Corporate Events
Business Operations and StrategyFinancial Disclosures
ASOS lifts margins and returns to GMV growth as turnaround gathers pace
Positive
Sep 24, 2026
ASOS reported a strong improvement in profitability for its 2026 financial year, with adjusted gross margin exceeding 50% and adjusted EBITDA coming in above the midpoint of guidance, supported by better sourcing, lower returns and tighter cost co...
Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and Compliance
ASOS Seeks Block Listing for 400,000 Shares to Fund Incentive Plans
Positive
Aug 25, 2026
ASOS plc has applied to the London Stock Exchange for a block listing of 400,000 new ordinary shares, expected to be admitted to trading on 28 August 2026. Half of the new shares will be used to satisfy awards under the company’s Long-Term I...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
ASOS Sells Atlanta Fulfilment Centre as Asset Disposals Cut Debt
Positive
Jul 1, 2026
ASOS has sold the lease and automation assets of its non-operational Atlanta fulfilment centre, assigning the lease to a global consumer brand and selling the equipment to a DHL Group company for net proceeds of about £48m. The transaction fo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.