Fashion
ASOS edges forward, still loss-making but margins grow, hard work is behind it
Published
November 21, 2025
ASOS full-year results on Friday showed the fashion e-tail giant still with lots of negative numbers although its gross margin has grown and it seems closer to a return to growth if things go right for it.
The results report contained a lot of words in which the company reviewed its strategy overall and highlighted the improvements it has made, but jumping directly to the figures, it remains loss-making.
Looking first at adjusted figures for the 52 weeks to the end of August, gross merchandise value (GMV) was down 12% at £2.456 billion while adjusted group revenue dropped 14% to just under £2.465 billion. But the adjusted gross margin increase to 47.1% from 43.4%.
Adjusted EBITDA was up from £80.1 million to £131.6 million but this was below analysts’ expectations. However adjusted EBIT narrowed almost 50% at a loss of £32.2 million. The adjusted loss before tax improved almost 28% to £98.2 million.
Moving on to the statutory numbers, group revenue fell 15% to a little under £2.478 billion while the statutory gross margin at 47.1% was up from 40% the year before. The operating loss narrowed from almost £332 million a year ago to a loss of just over £212 million this time and the loss before tax also showed a strong improvement going from last year’s £379 million to a loss of just over £281 million this time.
The company said that for the current financial year (FY26), enabled by the strategic and financial progress made throughout its turnaround, it expects GMV to show an improving trajectory throughout the 12 months with the performance 3-4ppts ahead of revenue performance.
This will be driven by continued growth of flexible fulfilment models and reflecting its mix shift it has moved to GMV as the primary indicator of its top-line performance.
It will see further gross margin improvement reaching between 48% and 50% and further adjusted EBITDA growth to between £150 million and £180 million.
The company has been intensively restructuring its operations with an aim to deliver trends faster. Its Test & React model has successfully scaled to more than 20% of own-brands sales. And its partner brand product portfolio has been transformed. It has also put a number of operational efficiencies in place and strengthened its balance sheet significantly. It also referenced the successful relaunch of the Topshop brands, key leadership appointments during the year and important collabs such as the one with Adidas.
ASOS said its priority for FY26 is to deepen its relationships with customers and to make it not just a place to shop but a destination for inspiration and style. It’s leaning into what makes it distinctive, which it says is its unique assortment of the best own-brand and partner brand products, fuelled by speed and flexibility, styling that helps customers create outfits they love, and increasingly personalised experiences. It believes the most difficult work is now behind it.
FY25 deep dive
So looking back at the results for the past year, the GMV decline of 12% was quite significant, but it reflected actions taken to improve order profitability against a soft consumer backdrop. The top line performance was lower than expected but it said the quality of sales improved and the full-price mix increased with own-brand also gaining share within the mix. Its flexible fulfilment models gained significant traction and this broadened its product range without adding inventory risk, also ensuring that GMV growth outpaced revenue growth.
Its performance by individual markets saw the UK with GMV falling 7% while total revenue was down 9%. The number of visits and the number of orders both fell 12% and conversion was flat. But average basket value (ABV) was up 6%.
The company said the UK performance was more resilient than other regions during the year and while active customers declined by 8%, customer retention is improving.
In Europe, GMV declined 16% with total revenue down 19%, or 17% like for like (LFL). Visits dropped 17% and orders dropped 20% with conversion down 10bps. But ABV was up 3%, or 5% LFL. The company said this was partly due to its actions taken to limit unprofitable orders and also due to macroeconomic pressures.
In the US, GMV fell 18% with total revenue down 25%, or 22% LFL. Visits were down 17% while orders dropped 24% and conversion was down 20 bps. But as with other regions ABV rose, in this case by 4%, or 8% LFL.
Again, in this market the full-price mix improved and the rate of decline narrowed from 31% in H1 to 21% in H2.
In the rest of the world, GMV was down 15% with total revenue falling 16%, or 14% LFL. Visits dropped 14%, orders dropped 17% and conversion fell 10bps. But ABV rose 1% or 3% LFL.
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The components division generated CHF 193.5 million (~$249.6 million) in orders amid cautious investment in new machinery, while the After Sales division posted a 6 per cent increase to CHF 163.6 million, supported by expanded service networks and stronger activity in Central Asia and China.
Rieter has reported stable 2025 order intake of CHF 703.4 million (~$907.4 million) despite market uncertainty, while sales fell 20 per cent to CHF 685.1 million (~$883.8 million).
Cost controls delivered positive operating EBIT, but Barmag-related charges led to a net loss.
The Barmag acquisition expands fibre capabilities.
For 2026, Rieter projects CHF 1.3-1.5 billion ($1.68-1.94 billion) sales.
Group sales declined 20 per cent YoY to CHF 685.1 million (~$883.8 million) from CHF 859.1 million, reflecting subdued market demand. Sales in Machines and Systems dropped 23 per cent to CHF 329.1 million, Components fell 19 per cent to CHF 200.8 million, and After Sales decreased 17 per cent to CHF 155.2 million. Order backlog stood at around CHF 510 million at the end of 2025, Rieter said in a press release.
Despite weaker sales, Rieter achieved a positive operating EBIT of CHF 2.5 million through cost control measures. However, restructuring expenses and transaction costs related to the Barmag acquisition, totalling CHF 54.2 million, resulted in a net loss of CHF 63.4 million for the year compared with a net profit of CHF 10.4 million in 2024. Free cash flow turned negative at CHF 40.6 million, although net liquidity improved to CHF 184.3 million following a capital increase completed in October 2025.
Given the negative earnings, the board has proposed no dividend distribution while reaffirming its long-term policy of paying at least 40 per cent of net profit. The equity ratio strengthened to 53.3 per cent at the end of 2025, reflecting the capital raise linked to the acquisition.
Rieter completed the acquisition of Barmag on February 2, 2026, integrating the business as its new Man-Made Fiber Division. The move expands the company’s capabilities beyond short-staple fibre machinery, positioning it as a system supplier across natural and man-made fibre processing and strengthening technological capabilities in automation and digitisation.
The company expects at least CHF 20 million in synergies from the acquisition and has outlined new medium-term scenarios. Depending on market conditions, annual sales could range from CHF 1.4 billion with 2-5 per cent operating margins in a subdued environment to CHF 2.2 billion with margins of 8-11 per cent under strong demand.
For 2026, which Rieter described as a transition year, the group forecasts sales between CHF 1.3 billion and CHF 1.5 billion ($1.68-1.94 billion) and a positive operating EBIT margin of 0-3 per cent as integration and restructuring initiatives progress. Financing for the combined entity’s development is fully secured.
Fibre2Fashion News Desk (SG)
According to *fashion.com/market-intelligence/texpro-textile-and-apparel/” target=”_blank”>sourcing intelligence tool TexPro, export volumes reached **.*** billion pairs in ****, up from **.*** billion pairs in **** and **.*** billion pairs in ****. This steady rise in shipments highlights China’s scale advantage and strong manufacturing ecosystem, enabling suppliers to push higher volumes into international markets even amid softer demand conditions and heightened price sensitivity among buyers.
Average export prices continued their downward trajectory, declining to $*.** per pair in **** from $*.** in ****, $*.** in **** and $*.** in ****. The sustained erosion in unit values suggests a combination of factors, including aggressive pricing competition, a shift towards lower-priced product mixes, and buyer efforts to optimise sourcing costs in an uncertain global consumption environment.
At the exhibition, Texwin Spinning is showcasing its comprehensive range of cotton yarns, including combed compact yarn (Ne 16’s to 40’s) for weaving and knitting applications, carded compact yarn (Ne 16’s to 40’s), and high-performance components such as comber, flat and lickerin. The company manufactures its products using high-grade raw cotton in a fully automated facility, ensuring superior quality, strength, uniformity and consistency across textile processes.
“VIATT provides an excellent platform to connect with international buyers and industry stakeholders. We look forward to presenting our premium cotton yarn portfolio and strengthening our presence in the ASEAN and global markets,” Bhagya Chikani of Texwin Spinning told Fibre2Fashion.
Texwin Spinning Pvt Ltd is exhibiting at the Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies (VIATT) 2026 which is being held in Ho Chi Minh City from February 26-28.
The company is showcasing its premium combed and carded compact cotton yarns (Ne 16’s-40’s) along with textile components, aiming to expand its footprint across ASEAN and global markets.
Positioned as ASEAN’s most comprehensive textile trade platform, VIATT covers the entire textile value chain, bringing together global stakeholders from apparel fabrics and fashion to home textiles, technical textiles and advanced manufacturing technologies. With a strong emphasis on innovation, digitalisation and sustainability through initiatives such as ‘Econogy’, the fair serves as a strategic business hub for the region’s textile and garment industry.
Established in 2021, Texwin Spinning Pvt Ltd is a Gujarat-based manufacturer of premium-quality cotton yarn. Headquartered in Rajkot, the company serves both domestic and export markets and is guided by “Quality Is Our Motto.” Through a strong commitment to quality standards, customer satisfaction and continuous growth, Texwin Spinning continues to strengthen its brand presence in the competitive textile industry.
Fibre2Fashion News Desk (CG)
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