UK's ASOS forecasts annual profit above market expectations

ASOS Forecasts Annual Profit Above Expectations Amid Recovery and Growth

ASOS Reports Strong Financial Performance and Business Recovery

Annual Profit Forecast and Market Expectations

Nov 5 (Reuters) - British fashion retailer ASOS on Thursday forecast annual adjusted core profit above market expectations as margin gains, cost cuts and a shift to full-price selling fuelled a recovery in its business.

Impact of Cyber Incident and Sales Performance

Despite a temporary blow from an October cyber incident that it pegged at about 2-4% of group gross merchandise value (GMV), ASOS said sales in the opening weeks of the current fiscal year had been encouraging, with its active customer base rising about 1% since year-end to 16.5 million by the end of October.

Strategies for Profit Growth and Customer Base Expansion

Faced with rising costs, supply-chain disruption and more cautious consumer spending, ASOS has lifted profit and rebuilt its customer base by improving sourcing, cutting discounts, divesting assets and expanding its commission-based Flexible Fulfilment model, which avoids holding stock.

Competitive Landscape and Market Challenges

At the same time, UK retailers are battling Chinese rivals to sell to cash-strapped shoppers who are grappling with high mortgage costs, a weak job market and rising energy bills.

Financial Guidance and Analyst Consensus

The company guided for adjusted core profit of £180m to £200m for the fiscal year ending August 2027, above a company-compiled market consensus of £177 million. For fiscal 2026, it reported adjusted core profit of £170.3 million, beating the analyst consensus of £159 million.

Reporting and Editorial Credits

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Ronojoy Mazumdar)