Asos (LSE:ASC), the online fashion retailer, said gross merchandise value (GMV) rose in low-single digits year-on-year in the fourth quarter, its first quarter of growth after a full-year decline of 5%.
Adjusted gross margin came in above 50%, topping both the guided range of 48-50% and the company's medium-term target, driven by improved sourcing, better full-price sell-through and expansion of its Flexible Fulfilment model.
Adjusted EBITDA rose more than 25% year-on-year, landing above the midpoint of the previously guided £150-180m range, helped by the margin gains, a lower returns rate and cost discipline.
"We are pleased to have delivered FY26 adjusted EBITDA in the upper half of our guided range, together with sequential improvement in quarterly GMV growth and gross margin above our 50% medium term target," said chief executive José Antonio Ramos Calamonte.
Net debt fell to approximately £110m at year-end, from £184.7m a year earlier, aided by a £116m cash inflow from the disposal of its Lichfield and Atlanta warehouses, partially offset by slightly negative free cash flow.
Total active customers stood at 16.4m at year-end, with fourth-quarter customer numbers growing versus the third quarter, the first such quarterly rise since the second quarter of 2022.
Womenswear GMV grew 3% for the full year, accelerating to 8% in the second half.
Asos will publish full-year results for the period ended 30 August on 5 November.