ASOS Plc
Annual Report and Accounts 2025
ASOS Plc Annual Report and Accounts 2025
ASOS Plc Annual Report and Accounts 2025
01
ASOS Plc Annual Report and Accounts 2025ASOS Plc Annual Report and Accounts 2025
Our values
Authentic
We are customer-centric
Creative
Brave
Deliver
We celebrate what
makes us unique and stay
true to ourselves.
We have a curious and
adventurous spirit – it’s who
we are and runs through
everything we do.
We’ve been bold and
ambitious from the
start – it’s in our DNA.
We know that great work
doesn’t happen by chance.
02 At a glance
03 Our markets
04 Financial highlights
05 Operational highlights
06 Our strategy
08 Chair’s statement
09 Chief Executive Officer’s review
Strategic Review
12 Strategic review
18 Sustainability
38 Our people
42 Stakeholder engagement
46 Financial review
52 Risk management
56 Principal risks and opportunities
61 Long-term viability statement
63 SASB Standards Index
66 TCFD & CFD Index
Governance Report
70 Our Board of Directors
74 Our Management Committee
75 Corporate Governance Report
81 Nomination Committee Report
84 Audit Committee Report
92 Sustainability Committee Report
94 Remuneration Committee Report
97 Directors’ Remuneration Report
109 Directors’ Report
112 Non-Financial and sustainability
information statement
113 Statement of Directors’ responsibilities
Financial Statements
116 Independent Auditors’ Report
to the members of ASOS Plc
124 Consolidated Income Statement
125 Consolidated Statement of
Comprehensive Income
126 Consolidated Balance Sheet
127 Consolidated Statement
of Changes in Equity
128 Consolidated Cash Flow Statement
129 Notes to the Consolidated
Financial Statements
168 Company Balance Sheet
169 Company Statement of
Changes in Equity
170 Notes to the Company
Financial Statements
174 Related Undertakings of
the ASOS Group
175 Alternative Performance
Measures (APMs)
179 Company Information
180 Shareholder Information
See our full reporting suite including
our sustainability report on the
Investors page of our website.
asosplc.com
02
ASOS Plc Annual Report and Accounts 2025
At a glance
Own brands
Our own brands, including ASOS Design,
ASOS 4505, ARRANGE and Collusion, are
designed by our c.20 in-house teams and
offer our customers relevant and quality
products at compelling price points.
Having launched in FY23, we have scaled
our market-leading Test & React model to
>20% of our own brand sales as at the end
of FY25. We can test demand with our
customers before committing in depth and
bringing product from design to site in as
little as three weeks to:
offer the most exciting and fashion-
forward product to our customers;
support a cleaner stock profile with
faster stock turn; and
drive customer engagement, improving
our full-price mix and resulting in an
increased average basket value.
Own
brands
% of GMV in FY25
c.40%
Partner
brands
% of GMV in FY25
c.60%
ASOS Fulfilment Services (AFS)
We hold stock in our warehouses on
behalf of our partners, who maintain
ownership of the inventory. Once a sale
is made, we use our existing logistics
network to manage the customer journey
including delivery and returns. This
unlocks potential for both established
global fashion names and newer brands
to access our expansive customer
base whilst streamlining logistics.
Partner Fulfils (PF)
Partners can hold their owned stock at
their fulfilment centres and sell directly
through our platform, fulfilling the orders
directly to the customer. This enables us to
offer customers a broader and more
locally relevant range of products with
greater stock availability.
ASOS Media Group (AMG)
AMG helps brands target relevant
ASOS customers with tailored content
on and off ASOS that inspires emotion
and drives measurable results. It plays
a vital role in supporting brands to
achieve their goals with ASOS regarding
brand positioning, awareness, customer
engagement, and conversion.
Partner brands
Our differentiated offering provides
hundreds of the best third-party brands
across clothing, accessories and face &
body. From premium names to cutting-
edge fashion, and commercial favourites,
we give customers more of what they love
all in one place.
We have been scaling our Flexible
Fulfilment model, including ASOS
Fulfilment Services and Partner Fulfils,
which enables us to be more agile in
how we collaborate with our partner
brands whilst providing increased
depth of product to our customers.
We work with the best retail partners
in our Wholesale business to bring
Topshop and Topman to more customers
across the globe. Through our strategic
partnerships in our major markets, we’ve
taken our first steps to bring these brands
back in front of customers in real life.
At the heart of this model is our ability to
help customers discover complete looks
with an unmatched assortment, making
fashion feel more personal and relevant.
Distribution
centre
Barnsley
Distribution
centre
Berlin
Returns centre
Dallas
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ASOS Plc Annual Report and Accounts 2025
Our markets
Our fulfilment centres in Barnsley, UK and
Berlin, Germany, power fast and scalable
distribution, offering competitive delivery
speeds in key regions. To maximise our
flexibility, we can also service our US
customers out of a smaller site in Dallas, Texas.
We have created a personalised, localised and
mobile-first shopping experience on our site and
app across major global markets including the
UK, France, Germany and the US.
We work with a global network of suppliers
across key sourcing regions, including the
UK, Türkiye, China, India, and Bangladesh,
enforcing a rigorous ethical sourcing
programme under our Fashion with Integrity
(FWI) strategy, ensuring fair labour
practices and environmental standards.
United
Kingdom
50% of FY25 GMV
Europe
34% of FY25 GMV
United
States
10% of FY25 GMV
Rest of
World
6% of FY25 GMV
ASOS own brands
and labels
c.10
Active customers
c.17m
Markets
c.155
Employees
c.2,800
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ASOS Plc Annual Report and Accounts 2025
Financial highlights
Gross merchandise value
1
FY24: £2.8bn
£2.5bn
Revenue
FY24: £2.9bn
£2.5bn
Adj. gross margin
2
FY24: 43.4%
47.1%
Gross margin
FY24: 40.0%
47.1%
Adj. EBITDA
2
FY24: £80m
£132m
Total orders
4
FY24: 68m
57m
Free cash flow
2
FY24: £38m
£14m
EBITDA
FY24: £(40m)
£93m
Operating loss
FY24: £(332m)
£(212m)
Operating cash flow
FY24: £228m
£159m
Average basket value
5
FY24: £41.47
£42.89
Customers
3
FY24: 19.7m
17.0m
1 Gross Merchandise Value (GMV): Adjusted retail sales plus revenue attributable to Flexible Fulfilment partners,
net of returns and excluding sales tax.
2 This is an Alternative Performance Measure (APM). Please refer to pages 175 to 178 for reconciliation
to statutory measures.
3 Includes the Flexible Fulfilment models and hence the comparative figure has been restated.
4 Total shipped orders are the combined total of ASOS and Flexible Fulfilment orders.
5 Average basket value is defined as GMV divided by total shipped orders.
F
Y23
F
Y24
F
Y25 >20%
<1%
>10%
05
ASOS Plc Annual Report and Accounts 2025
Operational highlights
Bringing brands to life
This year we offered our customers different ways
to shop and interact with us. We levelled up our
customer experience, hosting a range of in-person
events, announcing new wholesale partnerships
for Topshop with Liberty and John Lewis as well
as showcasing our collab ranges on the streets of
London. We opened our first-ever, brand-owned
pop-up shop in New York, creating a buzz by bringing
an exclusive range to customers in person.
Developed in FY23, T&R now
contributes >20% of our own
brand sales. We have extended
the principles of this model to
our long-shore, own-brand
supply chain with broader
speed to market initiatives
reducing production times by
up to 30%. In FY26, we plan to
scale this further with T&R to
reach more than 25% of own
brand sales, on track for our
30% medium term target.
Expanding reach,
delivering depth
We offered more exclusivity to our customers, becoming
the first wholesale partner with c.10 brands and creating
exclusive products with c.40 brands. Our flexible fulfilment
programmes expanded into 7 new markets, adding
c.60 brands to bring customers even greater breadth
and depth of products. Following a successful pilot, we
transitioned one of our biggest partners, Inditex, to an
AFS model in H2 and expanded the partnership with the
launch of new brand Oysho. Flexible Fulfilment contributes
more than 10% of third-party GMV, as at the end of FY25,
with plans to scale this further to more than 15% in FY26.
New loyalty, deeper
connections
We introduced our new loyalty programme in
the UK, ASOS.WORLD, reaching more than 1m
members within the first 6 months. Offering
exclusive benefits and experiences, it aims to
deepen how we connect with our customers,
increase frequency and customer profitability.
With c.20% of members being new or reactivated
customers, we see ASOS.WORLD as one of the
many ways we can drive brand engagement.
Next-level outfit discovery
We have used AI to meaningfully enhance the
customer experience, including the rollout of ‘Styled
For You’, marking a major milestone in scaling outfit-
based inspiration. Now live on c.80% of our product
pages and trained on 100,000+ curated outfits, our AI
model can serve customers with curated outfit
suggestions based on individual products. Having
demonstrated improved engagement and conversion
metrics, our AI technology has the potential to
reshape consumer habits, paving the way for further
ultra-personalisation and even virtual try-ons.
Partnerships powering
engagement
We added c.100 partner brands in FY25,
including customer favourites like Arket,
Good American and House of CB. Part of
this success has been improving how we
bring the best of the ASOS platform to our
partners. We launched our exclusive multi-
year adidas x ASOS partnership, co-designing
a womenswear range, combining its iconic
heritage and brand with our speed and trends.
With c.58 million social media impressions and
c.1 million product views, the launch generated
a halo effect for adidas’ visibility and sales on-
site, illustrating the value our collabs can bring.
Delivering operational excellence
We have made further progress on cost management,
reducing our supply chain costs by c.20% through the
optimisation of our warehouse and delivery operations.
In the US, we finalised the Atlanta warehouse closure,
whilst in the UK we became the first retailer to partner
with InPost to provide a next-day, 7 days a week delivery
service. Having reduced our underlying returns rate by
c.150bps in FY25, we see further opportunity to tackle
the issue of unnecessary returns in FY26.
T&R as a % of own brand sales
Successfully scaling Test & React (T&R)
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ASOS Plc Annual Report and Accounts 2025
Our strategy
Right to win
Relevant fashion
product
We’re the go-to destination for
trend-led fashion that blends
quality, value and the best of our
own brands and partner brands.
Own brands:
Fashionability: Trend authority
Quality: Elevate fit, materials, craft
Value: Compelling price points
Partner brands:
Curation: Desirable mix of brands
Exclusivity: Unmatched assortment
Integration: Easy, efficient, highest
ROI partner of brands
Inspirational
shopping experience
We help people discover outfits
that fit their world, feel personal,
and are easy to shop.
Outfit-based:
Putting fashion into context
Personalised & localised:
Show customers the most relevant
assortment for them, in each moment
Easy-to-shop:
Provide a seamless, easy-to-shop
experience to drive deeper engagement
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ASOS Plc Annual Report and Accounts 2025
Helps us deliver
stakeholder value
Customers
Who benefit from access to quality fashion
at an attractive price, a market-leading selection
of brands and inspirational, targeted styling.
ASOSers
A passionate and diverse team who are
empowered to contribute, learn, and grow
through our open and entrepreneurial culture.
Suppliers
With whom we collaborate to foster trusted,
mutually beneficial partnerships over the long
term and support incontinuous improvement to
meet the standards set out in our FWI Strategy.
Partner brands
Who gain access to a large, global and often
hard-to-reach customer base, the flexibility to
work with us under arange of different models
and the opportunity to learn from us and other
brands on sustainability and ethical trade.
Shareholders
Who will benefit from a focus on delivering
profitable growthand sustainable cash generation
through the efficientallocation ofcapital.
Communities
Who are supported through our industry
collaboration and meaningful action on human
rights and modern slavery by championing under-
represented groups in fashion via programmes,
charity partnerships and ASOS Foundation.
Find out more
Stakeholder engagement on pages 42 to 45
Efficient
operating model
We manage costs carefully,
act with speed, and consistently
deliver on our promises.
Cost-effective::
Rigorous in our cost and capital management,
releasing resources to reinvest
Fast:
Design and deliver with velocity
Reliable:
Deliver what we promised, how we promised it
Read more in our Strategic Review
pages 12 to 17
08
ASOS Plc Annual Report and Accounts 2025
Chair’s statement
FY25 was not just a year of recovery
but one of reinvention. We have laid
the groundwork for a more focused,
agile, and customer-centric ASOS.”
As we reflect on the fiscal year 2025,
I’m proud to report that ASOS has
delivered a year of meaningful
progress - one that marks a turning
point in our journey towards
sustainable, profitable growth.
Against a backdrop of continued
macroeconomic uncertainty and evolving
consumer behaviour, our performance
demonstrates the resilience and agility of
the new operating model that has been
built over the course of our turnaround.
Our financial results speak to this
transformation with our gross margin
increasing by 370bps year-on-year (YoY),
supported by a stronger full-price sales
mix, and our adjusted EBITDA rising by
over 60% YoY, reflecting our disciplined
cost management and operational
efficiency against a challenging backdrop.
These profitability improvements were
delivered amidst lower sales, with GMV
declining by 12% YoY (on a like-for-like
basis), as we continued to focus on
optimising our customer proposition.
Beyond the headline figures, FY25 was
a year of strategic progress. Key
highlights include:
Scaling innovation: Our Test & React
model now drives >20% of own-brand
sales, and speed to market initiatives
have significantly shortened production
cycles - bringing trend-led fashion to
customers faster than ever.
Enhancing flexibility: Flexible Fulfilment
models (AFS and PF) now represent
more than 10% of third-party GMV as at
the end of FY25, across c.150 brands
and more than 10 markets, improving
product availability and unlocking
working capital efficiencies.
Elevating customer experience: Our
loyalty programme, ASOS.WORLD, has
reached more than 1m members in the
UK within six months of launching with
c.20% of these members being new or
reactivated customers. This initiative
has delivered higher order frequency
and customer profitability versus
non-members, indicating that our
proposition is driving engagement and
generating brand excitement. We are
committed to deepening our
relationships with customers by offering
more of these innovative products,
localised experiences, and personalised
services in FY26.
Driving long-term efficiency: Cost
improvement and optimisation remains
a priority. Our distribution and
warehousing costs as a percentage of
sales are down c.3ppts over the last two
years, despite inflationary pressures.
This has been achieved through a series
of wide-ranging initiatives such as
improving customer fulfilment metrics,
reducing the causes of unnecessary
returns, optimising our warehouse
footprint and contract renegotiations.
Unlocking these cost opportunities has
given us the ability to invest in our
strengths and areas of competitive
advantage that are valued by our
customers, and which we will look to
capitalise on in FY26.
Revitalising iconic brands: The
successful relaunch of Topshop Topman
(TSTM), including new wholesale
partnerships with Liberty and John
Lewis, as well as the return of Topshop.
com, has re-energised one of fashion’s
most recognisable names.
Strengthening our foundation: Our
balance sheet has been improved
through comprehensive refinancings
and the formation of the TSTM joint
venture. We have delivered a net debt
reduction of more than £110m YoY as at
the end of FY25 alongside a £118m
decrease in our inventory, highlighting
further the enormous effort to
successfully reset the foundations
of our business and maximise our
financial flexibility.
Advancing our sustainability
governance approach: We embedded
a tailored governance framework for
Fashion with Integrity (FWI), enhanced
our reporting tools, and facilitated
stakeholder engagement to embed
sustainability into decision making.
These outcomes have strengthened
FWI’s resilience and strategic alignment.
Building leadership for the future: We
have made further exciting changes to
our Management Committee and Board,
bringing fresh energy and expertise to
our leadership team (full details of which
can be found on pages 70 to 74). We are
confident that this will help to drive ASOS
forward in its next phase of growth.
FY25 was not just a year of recovery
but one of reinvention. We have laid the
groundwork for a more focused, agile,
and customer-centric ASOS. As we look
ahead, we remain committed to delivering
fashion that inspires, experiences that
connect, and value that endures.
As previously announced, after three
incredible rewarding years I will step down
as Chair upon release of our FY25 results
and Natasja Laheij will become Chair. I am
immensely proud of what our team has
achieved together. It has been a privilege
to witness such dedication, resilience,
and innovation across the organisation.
I believe this is the right time to move on,
and I do so with complete confidence in
Natasja Laheij’s upcoming tenure. I am
certain she will lead the Company in its
next chapter to even greater success.
Thank you all for your enduring
commitment and support and for
your continued belief in our journey.
Jørgen Lindemann
Chair
21 November 2025
1 Gross Merchandise Value (‘GMV’): Adjusted retail sales
plus revenue attributable to Flexible Fulfilment partners,
net of returns and excluding sales tax.
2 The arrangement with Heartland A/S, whilst referred
to as a joint venture throughout this report, will be
accounted for as an associate, as detailed in note 14
of the financial statements.
2025
2024
2023
47.1%
43.4%
44.2%
09
ASOS Plc Annual Report and Accounts 2025
Chief Executive Officer’s review
Our vision
ASOS has always stood for innovation,
energy and fashion that excites. At ASOS
we have the ambition to be the most
inspirational destination for fashion
lovers on the planet. We want to be the
place where young people looking to
express themselves through fashion
can come for daily style inspiration, and
to discover new brands and outfits.
We are convinced that we have the right
capabilities to deliver our ambition. We
aim to offer the most relevant product
assortment consumers can find, through
a unique combination of the curation of
the most attractive fashion brands on
the planet, and the fastest and most
compelling range of own brands. This
unique product mix is brought to life
through inspirational and personalised
styling. Our goal is simple: to make ASOS
the go-to personal stylist in your pocket.
Our journey
When I became CEO at the end of FY22,
it was clear we needed to reset the
business so we could deliver on our vision.
Three years later, the turnaround is well
underway: we have rebuilt our foundations,
sharpened our focus, and are ready to
reclaim our place as the most exciting
destination for fashion-loving customers.
The journey we’ve been on – which we
discuss in more detail in our Strategic
Review – has taken patience, hard
work and tough decisions to get to
where we are today. It has followed
a clear and deliberate sequence.
First, we needed to stabilise the business
by addressing our most pressing
challenges: an excessive level of stock, and
a rigid balance sheet. Over the past three
years, we have reduced our stock by more
than 60% and completely transformed
our debt structure, giving us the flexibility
to implement the changes we envisioned.
Second, we had to refresh our business
and economic model, evolving from a
highly promotional model to a more
agile, flexible approach that reacts
quickly to the market to consistently
offer customers exciting and relevant
products. This enables us to improve
our gross margin and cost base while
sharpening our customer proposition.
In FY25, these changes delivered a
step change in profitability, with gross
margins up 370bps YoY and adjusted
EBITDA up more than 60% YoY, despite
continued volume deleverage. These
improvements have been driven by
innovative propositions such as Test &
React (now accounting for over 20% of
our own brand sales), the addition of c.100
new brand partners, the expansion of
our Flexible Fulfilment models (more than
10% of third-party GMV as at the end
of FY25), and significant optimisation of
our cost base, particularly in our supply
chain which improved by c.20% YoY.
Adjusted gross margin
47.1%
Our priority for FY26 is to focus on...
deepening our relationships with
customers and making ASOS not just
a place to shop, but a true destination
for inspiration and style.”
Today, we can confidently say we have
achieved the goals set for the first
two phases of our journey. We have
transformed the business, creating the
capacity to invest in what matters most
to customers. These improvements give us
the confidence that we now have the right
foundations to deliver the best of ASOS
in a way that is sustainably profitable.
Our future
Our priority for FY26 is to focus on the
third phase of our journey, deepening our
relationships with customers and making
ASOS not just a place to shop, but a true
destination for inspiration and style.
Our strategy is to build on what makes
ASOS distinctive: our 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 that feel relevant and
exciting, powered by technology and AI.
By focusing on differentiation, rather than
commoditised promotions or transactional
experiences, we will create lasting
value for customers and stakeholders
and sustainably profitable growth.
With the most difficult work behind us, I’m
more confident than ever that we have the
right strategy and capabilities to achieve
our ambition to become the most exciting
destination for fashion-lovers.
I would like to personally thank our
ASOSers, whose dedication and effort
has made this transformation possible.
I look forward to sharing more about
our journey and our next chapter in
the Strategic Review and thank you
for your continued support.
José Antonio Ramos
Calamonte
Chief Executive Officer
21 November 2025
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ASOS Plc Annual Report and Accounts 2025
Strategic
Review
Contents
12 Strategic Review
18 Sustainability
38 Our people
42 Stakeholder engagement
46 Financial review
52 Risk management
56 Principal risks and opportunities
61 Long-term viability statement
63 SASB Standards Index
66 TCFD & CFD Index
11
ASOS Plc Annual Report and Accounts 2025
FY25
FY24
FY23
£402m
£520m
£768m
FY22
£1.1bn
12
ASOS Plc Annual Report and Accounts 2025
Inventory levels
Inventory reduction YoY
c.20%
Strategic Review
Our strategic
progress
Our journey so far
We’ve taken a deliberate approach
to putting the foundations in place
for sustainable, profitable growth.
As we’ve spoken about before,
there have been three stages to our
turnaround each involving a deliberate
series of actions – not always a linear or
neat process, but all geared towards the
same goal of building a platform that can
deliver sustainable, profitable growth.
Stage 1: Dealing with the legacy
of the old model
Our first focus was on addressing the
significant legacy issues constraining
ASOS. These combined actions
represent an enormous effort across
our business to successfully reset the
essential foundations of our business.
Successfully resetting our
inventory position…
At the beginning of our transformation,
our stock levels had doubled to £1.1bn at
the end of FY22, due to pandemic-related
disruption and poor commercial practices
which led to the build-up of old and aged
stock. Resolving this required tough but
necessary action, with ‘peak pain’ in FY23
and FY24 including reducing our intake
and discounting to clear old stock.
By the end of FY25, we successfully
reduced our stock levels to c.£400m,
down c.60% since FY22, clearing aged
inventory so customers see fresh styles
and the latest trends every time they shop.
…allowed us to complete our warehouse
rationalisation
A second challenge at the start of our
transformation was our substantial
warehouse network. Since FY21, we’ve
reduced our footprint by over 50%,
supported by the reduction in excess
inventory and more efficient stock levels
under our new commercial model. This
has improved our operational efficiency
on existing sites and delivered significant
fixed cost savings, enabling us to serve
our customers more competitively.
Having mothballed our second UK
fulfilment centre (FC) in Lichfield in FY24,
we announced the mothballing of our
Atlanta site in FY25 — optimising our
US operating model, with significantly
improved product availability for
customers from our remaining UK FC in
Barnsley, and a smaller, more flexible new
site in Dallas, while generating an expected
£10–20m in annualised cost savings.
We’ve significantly strengthened our
balance sheet, improving our financial
flexibility for the future
The third key legacy issue was our balance
sheet and capital allocation. In FY25 and
early FY26, we took a series of actions that
significantly strengthened our balance
sheet and improved our financial flexibility.
In September 2024, we announced the
formation of the Topshop and Topman
joint venture (TSTM JV), with Heartland
A/S taking a 75% stake for a £135m cash
consideration. Through a concurrent
convertible bond refinancing, we
successfully extended our debt maturity
profile while reducing our net debt,
funded in part by the TSTM proceeds.
In November 2025, we announced a
further successful refinancing of our
asset backed loan facility into a secured
term loan and Delayed Draw Term Loan
(“DDTL”) with a new syndicate of private
lenders. This refinancing brings materially
improved financial terms, including
£87.5m additional liquidity headroom,
increased financial flexibility over a
five-year term to 2030, and a c.£5m
reduction in annual cash interest costs
versus the previous Bantry Bay facility.
While our work to optimise the business
model and capital allocation will continue,
we are confident that we have now
addressed the most critical foundational
issues. This gives ASOS the flexibility and
resilience needed to support our next
phase of sustainable, profitable growth.
Stage 2: Building the new
commercial model based on
speed, agility and profitability
The second stage of our turnaround
required us to build a new commercial
model that could deliver sustainable
profitability. This required a
comprehensive transition to more
disciplined, agile ways of working focused
around three simple principles: better
product for customers, backed up
by rigorous inventory management,
and more efficient operations.
Consistently delighting customers with
fresh, relevant products at the right price
builds loyalty, and drives full-price sales.
Stronger unit economics, in turn, create
the capacity to reinvest in customer
experience, creating a positive flywheel.
13
ASOS Plc Annual Report and Accounts 2025
Together, these principles establish a
structurally higher gross margin profile
and stronger, more profitable underlying
economic model that we can grow
sustainably going forward. We can already
see proof of this working in FY25. We
grew our gross margin by 370bps YoY,
driven by higher full-price mix and lower
markdowns, while reducing inventory
by a further c.20% YoY, benefitting
our working capital intensity through
quicker, more efficient stock turnover.
Our wide-ranging approach to improving
the efficiency of our cost base and
operations – from a more targeted
approach to our customer proposition
by market, through to renegotiating and
resetting our variable and fixed cost
base to support the new commercial
model – all helped us deliver adjusted
EBITDA growth of more than 60% YoY to
£132m in FY25. This has been achieved
despite continued volume deleverage
from lower than expected GMV, and
against a backdrop of continued macro
uncertainty, demonstrating the resilience
and agility of our new operating model.
We have deliberately spent longer on
Stage 2 than initially planned, and for
good reason. Towards the end of FY25,
we explored the opportunity to reduce
fixed costs and drive further variable cost
optimisation and we remained focused
on securing even stronger profitability
foundations that will deliver further
material improvements to our cost base
in FY26 and beyond, effectively creating
more headroom to reinvest in growth.
With the core building blocks of our new
commercial model now in place, we are
able to move from roll-out to amplification.
design, with the ability to cut our average
production times by up to 30% over the
last year. Our growing speed to market
models help us bring customers trends
first while also improving the efficiency
and agility of our supply chain.
These capabilities are extremely hard to
replicate. They require deep co-ordination
across design, sourcing and logistics,
as well as the ability to test and gather
data on small runs of product through our
online platform and centralised inventory.
Managed effectively, these production
methods can narrow the gap between
supply decisions and demand signals –
supporting better gross margins (even
with higher investment into input costs),
reducing discounting and removing waste
and excess production in the system.
The integration of new AI tools is also
making our people and our processes
more efficient. During H2, we successfully
piloted a new AI design tool which delivers
an average time saving of 75-80% on core
design workflow tasks, as well as removing
sampling costs and physical waste.
Deepening our partner brand relationships
to bring customers more of the best
product, in one place
Combined with our Flexible Fulfilment
(FF) models – Partner Fulfils (PF) and
ASOS Fulfilment Services (AFS) – we’re
able to scale the availability of the
best product to our customers faster
and more efficiently than ever.
These models allow us to be more agile
in how we collaborate with our partner
brands, while offering our customers
increased breadth (i.e. expanding
the product range available on the
ASOS platform) and depth (i.e. giving
customers access to best sellers when
our wholesale stock is depleted).
We ended FY25 with these platforms
scaled to more than 10% of third-
party GMV by the end of the year,
across c.150 brands and more than
10 markets, including successfully
transitioning to AFS with Inditex during
H2 and launching PF in the US.
Case study
Test & React in action
Our market-leading Test & React model,
which brings product from design to site in as
little as three weeks, enables our own brands
to deliver the most exciting product and set
the trends for our fashion-loving customers.
One of our key successes that customers
loved in FY25 was our cinched, tie-side
t-shirts which we were able to repeat,
and test across 15 new options including
t-shirts, tops and dresses.
In FY26, we enter the final stage of
our transformation with a business
model, stock profile and underlying
cost base that positions us to return to
sustainably profitable GMV growth.
How have we achieved this?
(i) Better product for customers
Great product sits at the heart of our
customer proposition. What makes the
ASOS experience distinctive is the way
we bring the best and freshest own
brand and partner brand product to
life — through curating outfits, exclusive
drops and inspirational styling that
showcase fashion in a way that excites.
New speed models allow us to set the
trends with our own brand product
Being first to market for fashion
and trends is one of ASOS’ defining
strengths and something we’re
proud to bring to our customers.
Our market-leading Test & React (T&R)
model – which brings product from design
to site in as little as three weeks – enables
our own brands to deliver the most
exciting product and set the trends for
our fashion-loving customers. T&R now
accounts for more than 20% of our own
brand sales, having launched from pilot
two years ago, demonstrating the strong
customer demand for this product and
our new commercial model in action. Into
FY26, we plan to scale this even further to
more than 25% of our own brand sales, on
track for our medium term target of 30%.
We have extended the same fundamental
principles to our long-shore own brand
supply chain through our speed to market
initiatives, such as moving to fabric-first
14
ASOS Plc Annual Report and Accounts 2025
Strategic Review cont.
In FY26, we will continue to scale these
models to more than 15% of third-
party GMV to best serve our customer
demand and expand our relationships
with new and existing brand partners.
Our partner brands can see the power of
our reinvigorated platform, with c.100 new
partner brands joining in FY25, spanning
premium names, cutting-edge fashion, and
commercial favourites, giving customers
more of what they love all in one place.
Our cross-functional teams combine the
best of the ASOS platform for our brand
partners: from elevated shoots through
our in-house Studios capabilities, access to
new audiences through ASOS Media Group
(AMG) via our owned social and website
content, to high-impact events.
These efforts have driven successful
launches of brands including Arket,
House of CB and Good American and
deeper collaboration with existing
partners such as Charlotte Tilbury,
Inditex, Mango and Nike. We’ve also seen
a strong customer response to our
growing premium proposition, which we’re
excited to continue building out in FY26.
Creating exclusive outfits and styles
that only ASOS can offer to inspire
and excite customers
In FY25, some of our biggest customer
moments came from exclusive
collaborations. In July, we announced an
exclusive multi-year collaboration with
adidas launching an ASOS-designed
womenswear collection — a bold step
in a long-standing relationship.
The first drop featured c.30 uniquely
designed pieces, generating 58 million
social impressions in launch week and 2
orders per second at launch, creating
a halo effect and uplift in sales and
visibility of broader adidas product.
This is just the start of an exciting
multi-year project, with the second
collection launched in Q1 FY26, combining
adidas’ brand and heritage with ASOS’
speed and trends, showcasing the
unique value we can bring to customers
through innovative partnerships.
As well as the latest trends, we know
our customers want brilliant everyday
essentials – staple products that offer
style, function and quality at great value.
In H2, we introduced breatheMAX™, our
new ASOS Design menswear range built
for maximum comfort and effortless
style. Featuring a variety of styles of
standard and oversized t-shirts at £16-
£22, each piece is crafted with a high-
performance wicking finish that pulls
moisture away from the skin and dries
quickly, perfect for wearing on repeat.
The demand from our customers has
been clear, with our initial menswear
launch surpassing full-price sell-through
expectations and driving us to expand
the range into womenswear in FY26.
We see significant opportunity to build
our next-level essentials collection further,
combining purpose-led design with
premium, more sustainable fabrics that
deliver function, durability and inclusive
style for our style-conscious customers.
Across our own brand portfolio, we
achieved 50% more sustainable
materials usage (up from 34% last
year, and surpassing our target of
45%), making more of our customers’
fashion choices inherently aligned
with responsible practices.
(ii) Rigorous inventory management
Consistently delivering customers the best,
freshest fashion product requires rigorous
inventory management. With faster speed
to market across our buying process (i.e. a
shorter lead time between buying and selling
stock), powered by T&R and our broader
speed to market initiatives, we can make
intake decisions with increased flexibility,
driving our full-price sales mix higher.
Alongside a more effective approach to
in-season clearance, we’ve improved our
12 week sell-through rate YoY with lower
markdown investment required. Our FF
models further enable us to maximise the
availability of the most exciting products
while minimising inventory risk.
Our new, more disciplined inventory
management process has enabled us to
reduce our stock cover by c.25% over the
last two years and improve the return on
cash invested into inventory. This results in
higher sales and gross profit for a given level
of inventory, thereby enhancing our cash
flow and sustainably reducing the capital
intensity of our operations, while allowing us
to increase our sales with a more efficient
investment in inventory in the future.
Case study
adidas Originals x ASOS collaboration
In July, adidas and ASOS shut down a street in central
London for an exclusive runway to mark the launch of the
first collection in our new multi-year partnership.
adidas Originals x ASOS: Collection 01 showcased a
range of exclusive new womenswear pieces, designed
in-house by ASOS using adidas’ iconic sportswear
heritage, marking a major new chapter for both brands’
long-standing relationship.
15
ASOS Plc Annual Report and Accounts 2025
(iii) More efficient operations
Our focus on efficiency spans our
operations and our cost base. By removing
waste, both in terms of time and costs, we
can unlock opportunities to invest into
areas that our customers really value.
Increasing efficiency and removing
waste across our operations…
In FY25, we delivered meaningful
operational and cost efficiencies,
particularly across our supply chain, that
will lead to significant multi-year savings
and fundamentally improve our cost to
serve. We’ve reduced our supply chain
costs by c.20% YoY, while continuing to
invest into competitive delivery speeds
and bringing customers convenient
options e.g. through our next-day locker
partnership with InPost in the UK.
Distribution and warehousing costs
as a percentage of sales are down
c.3ppts over the last two years, through
a series of wide-ranging initiatives
including optimising our warehouse
footprint, contract renegotiations,
and improving customer fulfilment
metrics e.g. reducing the percentage of
orders that were missing our customer
delivery promise by c.30% YoY.
…focused on improving our customer
experience by reducing key pain
points like returns
Returns have been a major focus area,
both because of the cost they create and
the friction they cause for customers.
We know finding the right fit matters
most. That’s why, in FY25, we improved
size guides and added more reviews so
customers can shop with confidence
and avoid unnecessary returns.
We also refined our fair use policy in
core markets to protect free returns
for the vast majority of customers, while
addressing unprofitable behaviours.
These actions helped reduce our
underlying returns rate by c.150bps YoY,
and we see further opportunities ahead
in FY26 to tackle the root causes of
unnecessary returns and make shopping
with ASOS even more seamless.
Significant profitability improvements
in FY25, building on foundations laid over
last two years…
Combined, these gross margin and cost
improvements have enabled us to grow our
adjusted EBITDA by more than 60% YoY,
despite the continued volume deleverage
from lower than expected GMV as we
continue to focus on higher quality sales
against a soft consumer backdrop.
We have achieved this despite continued
inflationary pressures, macroeconomic
and tariff uncertainty, reflecting the
increased agility and resilience that we’ve
established during our turnaround. This
result also includes the impact of the TSTM
royalty payment in FY25, previously guided
to being a £10-20m adjusted EBITDA drag
during the year, but which we expect
to be increasingly positive over time.
Our profit per order is up 30% YoY,
underscoring the fundamental reset in
unit economics we’ve achieved through
focusing on creating sustainably profitable
relationships with our customers.
…with further cost improvements
locked in for FY26 and beyond
In H2 FY25, we explored additional
opportunities to reduce fixed costs and
drive further variable cost optimisation
across our business, including through
a disciplined review and subsequent
renegotiation of key supplier contracts.
These meaningful cost actions, while
not delivering a material benefit during
the period, have lowered our cost base
for the medium to long term, positioning
us to realise significant annualised
cost savings in FY26 and beyond.
Our focus on efficiency spans our operations
and our cost base. By removing waste...we
can unlock opportunities to invest into
areas that our customers really value.”
16
ASOS Plc Annual Report and Accounts 2025
Strategic Review cont.
Case study
Launching more immersive
shopping experiences
In August, we launched ASOS Live, our immersive
video shopping experience that bridges the gap
between inspiration, discovery and shopping.
Our customers have been engaging with our
elevated on-app video content, including the
unboxing preview of the 2025 ASOS Face +
Body advent calendar. This preview not only
generated excitement but also featured
informative content that guides customers
in discovering our products.
…demonstrate the opportunity
to bring more new customers to
ASOS by raising brand awareness
In FY26, we see a significant opportunity
to win more of these future core
customers by spreading the message to
new customers and telling them about
everything that ASOS can offer. We will
relaunch the ASOS brand with a clear,
product-led message around quality and
inspiration, supported by disciplined,
ROI-driven brand marketing to drive
higher awareness and consideration in
our core markets. This will be backed
up by an exciting pipeline of new and
innovative digital experiences to
drive momentum and brand heat.
Making ASOS feel like it’s made
for you through better, more
personalised experiences
In FY26, our customers will find more ways
to use ASOS for fashion discovery and
inspiration. We’re launching a pipeline of
exciting new features that will make every
customer feel like ASOS is made for them,
regardless of their shopping mission;
whether its finding full outfits and looks
with confidence; discovering new brands,
trends, and styles; or getting tailored
advice from your own personal stylist.
Customers will be able to enjoy continuous
improvements over the coming months
including a new personalised “For
You” tab filled with the most relevant
recommendations based on their
preferences, a refreshed homepage with
shoppable fashion entertainment where
they can explore and discover new brands,
trends and products, as well as new ways
to discover and engage with outfits,
including making them easier to visualise,
buy and share their favourite looks.
Where we’re
going in FY26
Stage 3: Re-engaging customers
with the most relevant product and
inspirational shopping experiences
Re-engaging customers at scale to drive
sustainably profitable GMV growth
With these stronger foundations secured,
the final phase of our turnaround is
regaining the hearts and minds of
customers at scale. We’re focused on
leaning into what makes ASOS distinctive:
great product, inspiring experiences
and innovation that resonates with our
core customer. This means combining
our unique mix of own brand and partner
brand product with styling, personalisation
and immersive experiences that makes
us a true destination for fashion. Our
successful execution of the first two
stages of our journey is what gives us
confidence in our ability to successfully
deliver this final stage of our journey.
Into FY26, we are focused on three key
growth levers: continuing to enhance
product relevance through our speed
models, exclusive collaborations and FF
platform expansion; investing in ROI-
driven, product-led brand marketing;
and accelerating progress on our digital
customer experience – our biggest
opportunity for step-change improvement.
Positive signs of deeper engagement
with our existing customer base…
Although our total customer base is
down 14% YoY – reflecting lower new
customer acquisition, as well as our
continued actions to optimise our
customer proposition against a soft macro
backdrop – the quality and engagement
of our active customers are improving.
The number of reactivated customers
(those who had previously shopped, but
not in the preceding 12 months) is broadly
flat across the Group and up YoY in the
UK, showing the ability of our improved
product and experience to re-engage
customers who already have consideration
and awareness of the ASOS brand.
Our retention rate is improving, another
clear signal that our enhanced proposition
is resonating. When we strip out the impact
of measures taken to address unprofitable
customer behaviour, our retention rate
among profitable customers is improving
at three times the Group rate. At the same
time, average net spend and customer
profitability are also increasing, driven by
higher basket values and lower discounting.
The progress we’ve made with our customer
proposition and economics in the first two
stages are already delivering improved
return on advertising spend (ROAS).
Taken together – higher spend, higher
profitability and stronger retention –
these trends demonstrate that ASOS
is successfully winning back the hearts,
minds and wallets of customers who know
our brand and shop with us, giving us
confidence that we have got a strategy
that can bring value to customers.
17
ASOS Plc Annual Report and Accounts 2025
17
Outlook
In FY26, enabled by the strategic and financial progress
made throughout our turnaround, we expect:
GMV expected to show an improving trajectory
throughout the financial year,
GMV performance 3-4ppts ahead of revenue
performance, driven by continued growth of FF models;
Further gross margin improvement of at least 100bps
to 48% to 50%, driven by continued growth in full-price
sales mix and FF models;
Further adjusted EBITDA growth to £150m to £180m,
supported by continued gross margin expansion, variable
contribution and fixed cost discipline, with a meaningful
year-on-year margin improvement in both
H1 and H2 FY26; and
Broadly neutral free cash flow.
Our core focus remains sustainable, profitable growth. In the
mid-term we continue to expect to generate adjusted EBITDA
sustainably ahead of capex, interest, tax and leases, with
revenue growth and an adjusted EBITDA margin of c.8%. Our
new commercial model can drive materially higher gross
margin towards 50% through higher full-price sales mix and
flexible stock models, which also benefits our inventory days.
Our focus on efficient capital allocation will bring our capex
down to 3% to 4% of sales, and over time, we anticipate that
our improving profitability and cash flow will also reduce our
net debt and interest levels.
In August, we launched ASOS Live, our
immersive video shopping experience
that bridges the gap between inspiration,
discovery and shopping through live and
on-demand videos that customers can
interact with and shop through, within
a social media-style experience on our
platform. We know customers value our
curation and guidance to help discover
products, and that informative video
content helps provide confidence in size,
fit and product suitability before ordering.
Since launching ASOS Live, we have seen
a positive customer impact on relevant
metrics that ASOS Live supports, including
higher engagement on-app and improving
customer conversion from viewers.
Our customers come to ASOS for
more than just individual products –
they are looking for style inspiration.
We know styling content is a proven
driver of conversion, demonstrating
the value it brings to customers, and
we’re innovating our on-site experience
to bring that value to more customers
and product pages than ever before. In
Q4, we began piloting our new “Styled
for You” feature, a major milestone in
scaling outfit-based inspiration with the
power of AI. Trained on our database
of 100,000+ expertly curated Studio
outfits, our AI model can serve customers
with curated outfit suggestions
based around individual products.
Rewarding our most loyal
customers with ASOS.WORLD
After a successful pilot launched in March,
we rolled out our new loyalty programme,
ASOS.WORLD, across the UK in Q4.
Designed to strengthen our connection
with customers, ASOS.WORLD rewards
loyal customers with early access,
priority alerts and exclusive experiences
designed around what they value most.
The programme features four tiers from
the free-to-join Stylist tier through to
our A-Lister tier for customers spending
£750+ annually. We have reached more
than 1m members in the UK within six
months of launch, demonstrating strong
customer demand for the programme.
Benefits are rooted in ASOS’ core
proposition of great product and
inspiring experiences: early access to new
collections, priority back-in-stock alerts,
invitations to exclusive online and in-person
events, and more. For example, ASOS.
WORLD members gained early access
to shop the second drop of our sold-out
adidas cow-print collaboration, purchasing
a third of the stock, despite only making
up c.10% of the customer base at the
time of launch, and driving a significant
spike in sign-ups to the programme.
Members are showing have higher
order frequency and customer value
versus non-members, demonstrating
the commercial benefit of deeper
engagement. In FY26, we see opportunity
to roll out ASOS.WORLD further and drive
even stronger customer connections.
Giving customers more ways
to shop our iconic brands with
the relaunch of Topshop Topman
(TSTM)
In August, we staged the major relaunch
of Topshop.com, taking over Trafalgar
Square in London, and delivering one
of the most talked-about comebacks
in British fashion. This was just the
beginning of reigniting the brands’
cultural relevance, with the return to
physical retail through a curated selection
of wholesale partners announced,
including Liberty and John Lewis.
Strategically, the relaunch is a major
step in rebuilding TSTM, giving customers
more ways to shop and engage with them.
The model, led by Managing Director
Michelle Wilson, gives TSTM the focused
leadership and support it needs to thrive
as iconic standalone brands, while still
leveraging ASOS’ core infrastructure
and expertise to unlock its huge potential.
We’re excited about the opportunities
this creates in FY26 and beyond – not only
for TSTM’s growth, but as a model for
future brand development within ASOS.
Together, these initiatives will allow
us to accelerate the impact of our
turnaround – turning the work of the
past three years into deeper customer
engagement, greater operational
efficiency and a clear route towards
sustainable, profitable growth.
Our biggest opportunity is to make
shopping on ASOS feel personal
and inspiring, with experiences that
help customers discover, style and
shop effortlessly. We are only at the
beginning of this chapter, with the first
wave of digital improvements delivered
in Q4 showing what is possible.
As we move into FY26, our focus and
velocity will step up significantly,
with a growing pipeline of initiatives
bringing this to life for our customers.
Each enhancement – from smarter
personalisation to seamless discovery
and checkout – is designed to deepen
engagement, strengthen loyalty,
and unlock profitable growth.
ASOS Plc Annual Report and Accounts 2025
18
Sustainability
Fashion with
Integrity
Planet
Our Fashion with Integrity (FWI)
strategy encompasses our work on
the sustainability-related impacts,
risks and opportunities that exist
within our value chain.
With its Planet, Product, and People pillars,
the strategy aims to strengthen ASOS’
resilience by reducing our environmental
footprint and ensuring ASOS behaves
responsibly towards our stakeholders.
On the following pages, we provide
detailed information regarding
each strategic priority, including
information on our policies, actions and
targets, and the steps taken during
FY25 to deliver our FWI strategy.
As part of our focus on continuous
improvement and refinement, this year
we have updated some of our targets and
commitments. We have explained these
changes throughout the report, but full
details of changes can be found alongside
target methodologies on asosplc.com/
sustainability/fashion-with-integrity/.
Key
Targets
(quantitative performance metrics)
Commitments
(qualitative performance metrics)
Goal
Reduce the impact of our operations
and value chain on the climate, the
environment, and natural ecosystems
Targets/commitments
Net zero carbon across our entire value chain by
FY50, with a 90% reduction in absolute emissions
from our FY22 baseline.
Performance: FY25: -48.2%
See page 26
Reduce absolute Scope 1 and 2 GHG emissions by
45% by FY30 from our FY22 baseline; and source 100%
renewable electricity across the ASOS Estate by FY27.
Performance:
Carbon: FY25: -22.9%
Renewables: FY25: 89.5%
See page 27
Reduce absolute Scope 3 emissions from purchased
goods and services and upstream transportation
and distribution by 42% by FY30.*
* In line with Science Based Targets initiative (SBTi) guidance this covers
100% of our Category 1a and 12.9% of our Category 4 emissions
Performance: FY25: -46.5%
See page 27
Sustainability
ASOS Plc Annual Report and Accounts 2025
19
FWI will always be a key part of
how we work at ASOS. As we make
progress with our wider business
strategy, we must also deliver
against the principles, targets and
commitments that underpin FWI; and
continue to strengthen the existing
link between sustainability, risk
management, and business resilience.
Doing so is essential to delivering
sustainable, profitable growth.
This year we have started to deliver on the
updated commitments and targets we set
out in our last annual report. As can be
expected, there are some areas where we
have made strong advancements, and
others where we have not moved as fast as
we would have liked. We’re committed to
transparently reporting on our progress
each year, including providing context on
challenges faced and any learnings.
As well as reporting on our progress
against our strategic targets, this section
incorporates our disclosures in reference to
relevant voluntary and mandatory reporting
frameworks. It also reflects our continued
commitment to the UN Global Compact
and its Ten Principles, which I’m proud to
endorse again this year.
José Antonio
Ramos
Calamonte
CEO
Product People
Goal
Make designing circular and more
sustainable products business as
usual, to create positive change
across a product’s lifetime
Goal
Ensure human rights are respected
and protected and support our
customers and communities
Targets/commitments
Increase our use of more sustainable materials
in our ASOS own brand clothing products
through annual targets.
Performance: FY25 Target: 45% FY25 Actual: 50%
See page 30
Test and introduce innovative packaging materials and
solutions, reducing overall usage where appropriate. By
FY26, we’ll increase recycled content in plastic mailing
and garment bags to a minimum of 95%.
Performance: N/A
See page 31
Train the manufacturers of our ASOS own brand clothing
products on our ASOS Circular Design Strategies.
Performance: On track
See page 31
Facilitate recovery programmes to keep products
in use at their highest value.
Performance: Delayed
See page 31
Targets/commitments
Implement our Human Rights strategy to enhance
the human rights of workers across our value chain.
Performance: On track
See page 34
Maintain and build on our foundation of effective own
brand and partner brand due diligence.
Performance: On track
See page 35
Grow our connection with under-served customers
and communities through authentic, impactful
partnerships and programmes.
Performance: Updated commitment
See page 36
Support and amplify new and emerging talent and brands
to help make fashion more exciting, inclusive and relevant.
Performance: Updated commitment
See page 36
By FY30, achieve 50% female and 15% ethnically diverse
representation across our combined leadership team.
See Our people section page 41
20
ASOS Plc Annual Report and Accounts 2025
Sustainability cont.
Basis for preparation of
sustainability disclosures
Scope of data and consistency
with frameworks and legislation
The data in the Sustainability section
covers the period 2 September 2024 to
31 August 2025, unless otherwise stated.
Our sustainability disclosures for FY25
cover our global operations and the whole
Group. We did not need to rebaseline any
sustainability-related data during this
financial year, as there were no material
changes in our operations, value chain or
business activities.
This is our third year disclosing in
reference to the Sustainable Accounting
Standards Board (SASB) and the Global
Reporting Initiative (GRI) standards. It also
marks our third climate-related financial
disclosures in reference to Sections 1 – 4
of the TCFD ‘Recommended Disclosures’
from ‘Chapter C. Guidance for All
Sectors’ within the TCFD’s publication,
“Implementing the Recommendations
of the Task Force on Climate-related
Financial Disclosures (2021)” (referred
to here as the “TCFD Guidance”).
We have also prepared the Planet section
in this report following the 2020 UK
Government Environmental Reporting
Guidelines, including Streamlined Energy and
Carbon Reporting (SECR) requirements.
Please refer to the appendix of this
report (page 63 to 67) for an index
highlighting the location of information
pertaining to each recommended
disclosure and our associated level of
consistency. In reporting in reference to
these frameworks we are also preparing
for the upcoming UK Sustainable
Reporting Standards (UK SRS).
In making this Scoping & Consistency
Statement, we consider that these
disclosures meet the requirements of
UKLR 6.6.6R (8) (UK Listing Rules).
Determining material
sustainability topics for
reporting
Consistent with our FY24 Annual
Report, we have used the results of
our impact materiality assessment to
define material sustainability-related
topics for reporting. This took in
desk-based research and internal and
external stakeholder interviews and
questionnaires. It identified our most
material external impacts on the economy,
environment, and society. By focusing
our efforts on these topics, we aim to
reduce our impact while also removing
potential risks to ASOS and improving
the resilience of our supply chain.
Building on this assessment and to
strengthen our understanding of risks
and opportunities for ASOS, we’re
currently undertaking a double materiality
assessment (DMA). Through the DMA
process, we are also refreshing our
understanding of ASOS’ impact on the
economy, environment and society.
Results from this DMA will be used to
refresh our view of material topics and be
incorporated in our reporting from FY26.
Both materiality assessments consider
topics from the European Sustainability
Reporting Standards (ESRS) guidelines.
These are based on the International
Sustainable Standards Board (ISSB) S1 and
S2 frameworks, which will be incorporated
in the UK through the upcoming
Sustainability Reporting Standards (SRS).
An overview of the sustainability topics deemed material for our annual reporting can be found in the table below:
FWI pillar Material topic Materiality
Principal
risk link Material topic description
Planet
Climate change Critical Y How ASOS manages impacts on climate change associated
with GHG emissions and how we respond to the risks caused
by climate change.
Water Significant N How ASOS manages water-related impacts associated
with water withdrawals, consumption and discharges.
Biodiversity Significant N How ASOS manages impacts on biodiversity and
ecosystems relating to the prevention, management
and remediation of damage.
Product
Resource use and waste
(i.e. materials and
packaging)
Significant N How ASOS manages impacts associated with the type
and quantity of resources used across our supply chain,
operations, and at end of life for packaging and products.
Pollution Significant N How ASOS manages impacts on the pollution of air, water
and soil, with specific consideration to substances of concern
(i.e. toxic chemicals), and microplastics
People
Equal treatment and
opportunities in the
supply chain
Significant Y How ASOS manages impacts associated with equal treatment
and opportunities in the supply chain, relating to the diversity
and inclusion of workers, measures against gender-based
violence and harassment, and equal pay and training. Includes
consideration to the diversity of brand partners.
Working conditions and
work-related rights in
the supply chain
Significant Y How ASOS manages impacts on working conditions and
work-related rights in our supply chain (including product
manufacture and workers not directly employed by ASOS or
third-party logistics providers, i.e. delivery drivers), including
child labour, forced labour, adequate wages, health and safety,
and freedom of association.
ASOS Plc Annual Report and Accounts 2025
21
Planet
22
ASOS Plc Annual Report and Accounts 2025
Climate
change
Related material topics:
Climate change
Risks
“Challenges and impacts of climate
change” is a principal risk for
ASOS. We face risks related both
to the transition to a lower-carbon
economy and the physical impacts
of climate change, throughout
our own operations and supply
chain. These include changes in
technology, market risks, and how
our response to climate change
affects our reputation. Physical risks
can be event driven by shorter-term
(acute) or longer-term (chronic)
shifts in climate patterns. Failure to
manage these risks effectively could
impact our financial performance
through a loss of stakeholder
confidence in ASOS, reduced
market share, increased costs, tax
penalties or potential operational
disruption. For more information,
please see our Principal risk and
uncertainties section on page 56.
Opportunities
Our carbon targets are in line with the
1.5°C climate pathway and have been
validated by the SBTi. This puts us in
good stead to respond and comply
with emerging legislation, providing
business resilience against policy risk.
Our sustainable materials target,
discussed in the Product section
of this report, is a key driver in
our decarbonisation planning. By
reducing our reliance on virgin
materials, we also increase our
resilience to the physical effects of
climate change, such as heatwaves
and droughts – which all have a
potentially substantial impact on
raw material yields, such as cotton.
The diversification of our product
portfolio to include more sustainable
offerings, for our own brands but also
through our partner brands, will
enable us to access new customers
and reduce the market-related risks
associated with climate change, such
as changing stakeholder preferences
and boycotting. To ensure these
benefits are realised, we are working
hard to improve our systems, to
enable us to be more transparent with
our customers on the environmental
performance of our products.
Our approach
During the year, we continued to work in
partnership with Risilience to strengthen
our deep-dive scenario analysis using the
scenarios and assumptions below.
Our modelling focuses on downside risks
and is based on our current product range,
sourcing strategy and asset base, with no
mitigation or strategic response assumed
to minimise these risks. The financial
values and potential costs presented are
quoted as ranges to reflect the inherent
uncertainties of climate-related modelling,
which relies heavily on assumptions.
These uncertainties are driven by
internal limitations in data, as well as
the rapidly evolving nature of climate
science, regulatory developments,
and technological advancements. We
are working to improve our data and
systems, specifically around supply
chain transparency, with the aim to
make our modelling outputs more
representative of our full value chain.
As with any forward-looking analysis,
there are significant uncertainties
involved. Our analysis is exploratory in
nature and should not be considered
a forecast or prediction. Instead, it
serves as a tool to test the resilience of
our business strategy under different
potential future climate conditions.
The assumptions underpinning this analysis
are based on the Intergovernmental
Panel on Climate Change’s Shared
Socioeconomic Pathways (SSPs), the
Network for Greening the Financial
System (NGFS) pathways, regulatory
landscapes, market conditions and areas
of our business model including our supplier
portfolio, all of which are subject to rapid
change. As a result, our scenarios cannot
capture the full range of potential future
developments, particularly as new data,
policies and technological advancements
emerge. This analysis therefore represents
a snapshot of plausible futures under
existing assumptions and currently known
information, but it does not encompass
the full breadth of possible outcomes.
Types of climate risks:
Transition risks and opportunities
result from moving to a lower carbon
economy and are caused by market
sentiment, climate policy/legislation,
the need to update technology,
requirements to change our business
model or operations, and any
reputational impacts resulting
from these areas.
Physical risks and opportunities
result from the effects of climate
change on the environment and
weather and are caused by global
warming, leading to more extreme
weather events such as drought,
excessive heat, wildfires, flooding,
heavy precipitation and cyclones.
Sustainability cont.
Planet
23
ASOS Plc Annual Report and Accounts 2025
The scenarios we analysed
This year our detailed climate risk analysis
used climate modelling scenarios based on
Shared Socioeconomic Pathways (SSPs)
for physical risks and the NGFS-defined
emissions pathways for transition risks.
For comparability, as the NGFS pathways
build narrative upon the SSPs temperature
warming scenarios, we have mapped our
physical risks to the relevant NGFS
pathway in our detailed climate risk
analysis results table on page 24.
We have selected four NGFS pathway
scenarios to assess potential
transition and physical impacts:
1.4ºC
Orderly
Net Zero 2050
Assumes global warming is limited to
1.4°C through stringent climate policies
and innovation, reaching global net
zero CO emissions around 2050.
Under this scenario:
Global CO emissions reach or
approach zero in 2050.
Countries with a political commitment
to a net zero target defined before
end of March 2024 meet this target
before or after 2050.
1.7ºC
Disorderly
Delayed transition
Assumes annual emissions do not decrease
until 2030. Post-2030 regime change
introduces strong policies to limit warming
to below 2°C. Under this scenario:
Countries stick to current policies until
2030 and experience a “fossil recovery”,
after which they transition such that
the end-of-century temperature goal
of 2ºC warming is reached.
This change of regime in 2030 is
unanticipated and therefore disruptive.
Countries with net zero policy target
commitments are assumed to
follow-through on 80% of them.
Negative emissions are limited.
2.4ºC
Too little, too late
Fragmented world
Assumes a delayed and divergent climate
policy response among countries globally,
leading to high physical and transition risks.
Under this scenario:
Countries without net zero targets
follow current policies, while other
countries achieve them only partially
(80% of the target).
Only currently implemented policies
are maintained until 2030 (delayed
transition); thereafter, countries that
have set themselves a net zero target
only reach an 80% reduction by 2050,
while others continue with current
policies (divergent transition).
3.0ºC
Hot house world
Current policy
Assumes that only currently implemented
policies are preserved, leading to high
physical risks. Under this scenario:
Existing climate policies remain in place
but there is no strengthening of ambition
level of these policies.
The time horizons we analysed
We used three different time horizons:
short (0-5 years), medium (5-10 years), and
long (up to 2040) when assessing potential
transition and physical impacts as follows:
Transition impacts: Beyond a 5 to
10-year time horizon, transition impacts
are highly uncertain due to lack of
visibility of future policy and legislation
and global market trends. Our largest
currently known impacts are expected
up to 2030, when currently announced
decarbonisation legislation and
regulations come into force. As a result,
we assessed transition impacts over
short- and medium-term horizons.
Physical impacts: Climate change can
cause both shorter-term changes and
longer-term chronic shifts in weather
patterns, so we assessed physical
impacts over short, medium, and
long-term time horizons.
We have provided the financial impacts for
the most material time horizon for each
risk set out in the Detailed climate risk
analysis table on pages 24 and 25. Where
several time horizons have the same
financial impact, the nearest time horizon
has been selected. This provides the most
imminent worst-case scenario in assessing
financial liability relating to climate change.
Financial impact methodology
Our modelling enables us to better
understand our potential risks and
opportunities, including the financial
and other impacts that they could
have on our business and our strategy.
Inputs to the model included certain
key business information such as
financial estimates, Tier 1 (final stage
manufacturing) facility locations and
volumes, estimated raw materials usage
data, and modelled greenhouse gas
emissions across Scopes 1, 2 and 3.
The modelling provided the estimated
potential annual financial impacts for each
climate-related risk detailed on pages 24
and 25. Financial impacts are the present
value of estimated future cash flows lost
due to the impact and time horizon
assessed, averaged for the number of
years in the respective time horizon
(this is referred to as Annual Earnings
Value at Risk (Annual EVAR)).
Data used relating to the usage of
sustainable materials and our Scope
3.1a product emissions data are based
on a series of documented estimates
and assumptions, such as product
weight and overall composition. More
detail is available at www.asosplc.com/
sustainability/fashion-with-integrity/.
We have conducted sensitivity analysis
on our estimates and assumptions to
determine the risk of potential errors in
our reported figures. This work identified
that no reasonable possible change in
our estimates and assumptions would
result in our reported figures changing
by 5% or more. As a result, in line with
our ESG Materiality & Rebase Policy,
we do not consider these estimates or
assumptions to be materially sensitive.
24
ASOS Plc Annual Report and Accounts 2025
Detailed climate risk analysis
Risk
type
Impact
description
Transition risk
Policy risk
Risk: Regulatory, compliance, litigation costs, or pricing of emissions
Cost impact of new legislation/regulation
We must comply with upcoming UK, EU, and US sustainability-related legislation, including product mandates and enhanced
reporting. These growing legislative requirements could significantly increase our compliance costs, and failure to
meet them could result in fines.
Related potential stakeholder litigation could lead to increased costs through defending or settling claims, and associated
negative publicity could affect customer sentiment leading to lost sales and market share.
We are subject to certain existing GHG emissions taxes including the EU’s Emissions Trading System (EU ETS) emissions surcharge.
If taxation levels were to increase further this could lead to higher operating costs and impact our financial performance.
Timeframe for most significant impact
Medium-term
Financial risk rating
1.4ºC 1.7ºC 2.4ºC
3.0ºC
H L L
L
Management approach
Our Planet and Product targets are aligned to UK and EU legislation. Through achieving these targets, we are mitigating this risk.
We are on track and making good progress against the majority of the targets/commitments under our Planet and Product
pillars, with one commitment having experienced delays in FY25. The delay here relates to launching circular business models, with
our care and repair propositions making less progress than planned. However, we’re engaging with potential external partners to
explore opportunities to launch this in the future.
See pages 26 to 31 for more information.
Transition risk
Technology risk
Risk: Investing in low-emission technology
Combined asset impairment and revenue impact due to poor/late investment into new lower carbon technology
Investing in inappropriate or ineffective technology could reduce the capital we have available for other strategic
priorities and impact our financial performance if the return on investment was poor.
Delayed investment into low-carbon technology could slow our decarbonisation compared to our competitors or inhibit
cost-efficient production of alternative more sustainable products. This could lead to lost market share and potential
non-compliance with upcoming regulation, impacting our financial performance.
Timeframe for most significant impact
Medium-term
Financial risk rating
1.4ºC 1.7ºC 2.4ºC
3.0ºC
L L L
L
Management approach
We have partnered with carbon expert Vaayu Tech. Its analysis gives us insights into our emissions, enabling us to prioritise
initiatives and allocate efficiently.
Our climate risk partner, Risilience, models climate risk profiles of supplier locations. We can use this alongside other risk
assessment tools that we already use such as the WWF Water Risk Filter to understand supply chain resilience.
See pages 26 and 27 for more information.
Key
Financial risk rating Annual EVAR range £(m)
L (Low) 0-5
M (Medium) 5-10
H (High) 10+
Sustainability cont.
Planet
25
ASOS Plc Annual Report and Accounts 2025
Risk
type
Impact
description
Reputation risk
Transition Risk cont.
Risk: Changing customer and investor preferences/sentiment due to an increased awareness of sustainability-
related activities
Combined revenue impact of growing interest in sustainable products and increased awareness of company
sustainability activities
Growing interest in sustainable products and services could lead to increased demand for products with lower environmental
impacts. If we were unable to react to this change in market demand or keep pace with our competitors, this could lead to lost
market share and impact our financial performance.
Increased awareness of climate change issues and company responses could affect the behaviour of our customers and
current or potential employees. Negative publicity resulting from a failure to meet our sustainability targets or to effectively
incorporate climate change considerations into our decision making could lead to:
– our customers shopping elsewhere, resulting in lost sales and market share, impacting our financial performance;
– our customers collectively taking action to boycott shopping with us, resulting in lost sales, impacting our financial
performance; and
– ASOS being less attractive to new or current talent, impacting our ability to deliver our strategy or increasing our
employment costs if we were required to pay above market wages.
Timeframe for most significant impact Short-term
Financial risk rating
1.4ºC 1.7ºC 2.4ºC
3.0ºC
M L L L
Management approach
Our Product strategy is focused on improving product quality and increasing our use of more sustainable materials.
See pages 30 and 31 for more information on our Product targets and commitments. Our carbon partner, Vaayu, is able to
provide lifecycle analysis (LCA) at product level. Upcoming Digital Product Passport requirements will require customer-facing
product impact analysis, including carbon emissions.
Physical Risk
Acute and chronic climate risks
Risk: Changes in climate and the frequency and intensity of weather events
Combined revenue impact of reduced raw material availability and facilities disruption
Water scarcity and resulting regulatory restrictions could affect the availability of raw materials (e.g. cotton) and our third-party
suppliers’ production processes, resulting in increased production expenses that impact our financial performance.
Weather events could disrupt, damage or destroy our key leased logistics or office facilities and/or any owned inventory or
plant and equipment that they hold. Related damage, destruction or the impact on our operations could lead to incremental
costs and impact our financial performance.
More frequent and severe extreme weather could disrupt, damage or destroy our third-party suppliers’ sites or operations,
increasing costs, hindering our ability to obtain or distribute goods, and impacting our financial performance.
Weather events could make working conditions unsafe and ultimately lead to disruption and/or closure of our sites or
operations and impact our financial performance.
Timeframe for most significant impact Short-term
Financial risk rating
1.4ºC 1.7ºC 2.4ºC
3.0ºC
L L M L
Management approach
Our diverse, flexible supply chain means we are well placed to adapt to disruptions to factories or supply of materials.
Raw materials
We monitor commodity pricing for our key raw materials and work with our suppliers to manage fabric costs. Increasing our use of
more sustainable materials reduces our reliance on conventional raw materials, which often require more resources to produce.
This helps to increase our resilience to the physical effects of climate change, such as heatwaves and droughts, which can have a
significant impact on raw material yields. See pages 30 and 31 for more information on our Product targets and commitments.
Facilities disruption
We have insurance which protects us from losses relating to physical events. Our social due diligence approach for our supply
chain covers health and safety, including heat or water stress. More detail is provided on page 35.
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ASOS Plc Annual Report and Accounts 2025
Strategic progress – FY25 performance against targets
Greenhouse gas (GHG) inventory:
Scope category
Emissions (tCO
2
e)
FY25 FY24
% change
YoY
% change vs
baseline FY22 baseline
1 Fugitive Emissions 0 366 -100% -100% 557
Natural Gas 2,524 2,416 4.5% -30% 3,608
2 Electricity (Market Based) 2,422 2,372 2.1% 8.5% 2,232
Electricity (Location Based) 8,351 9,125 -8.5% -17.3% 10,096
Total Scopes 1 & 2 (MB) 4,946 5,153 -4% -22.9% 6,417
Total Scopes 1 & 2 (LB) 10,875 11,907 -8.7% -23.9% 14,281
3
3.1a Purchased Goods for Resale (Products &
Packaging)
659,807 766,749 -14% -46.1% 1,224,272
3.1b Purchased Goods and Services not for Resale 40,646 43,439 -6.4% -60.1% 101,963
Data centres (Microsoft emissions) 630 959 -34.2% N/A N/A
3.2 Capital Goods 21,628 34,288 -36.9% -58.9% 52,598
3.3 Energy-related Activities not in Scope 1 & 2 2,705 4,843 -44.1% -44.4% 4,863
3.4 Upstream Transportation and Distribution 184,872 206,792 -10.6% -56.2% 422,036
3.5 Waste (Operations) 1,386 11,800 -88.3% -89.1% 12,757
3.6 Business Travel 2,685 2,025 32.6% 94.1% 1,383
3.7 Employee Commuting 598 1,324 -54.9% -74.8% 2,367
3.8 Upstream Leased Assets 1,127 23 4,799.6% 4,407.6% 25
3.9 Downstream Transportation 1,167 1,622 -28% N/A 0
3.11 Use of Sold Products 83,383 90,981 -8.4% -36.2% 130,639
3.12 End-of-Life of Sold Products 43,199 43,665 -1.1% -31.6% 63,138
Total Scope 3 1,043,203 1,207,551 -13.6% -48.3% 2,016,041
Total emissions 1,048,149 1,212,705 -13.6% -48.2% 2,022,438
Net Zero carbon across our entire value chain
by FY50, with a 90% reduction in absolute emissions
from our FY22 baseline.
Sustainability cont.
Planet
Emissions (tCOe)
FY25 FY24
% change
YoY
% change
vs baseline
FY22
baseline
1,048,149 1,212,705 -13.6% -48.2% 2,022,438
In June 2025, we submitted our carbon targets to the Science
Based Targets initiative (SBTi) for re-validation, and these have
now been approved. As part of this process, we have updated the
wording and scope of some of our targets to reflect the latest
SBTi requirements. This is particularly of note for our short-term,
FY30 target, which has been updated to now include emissions
from own brands, partner brands, goods not for resale suppliers,
and upstream transport and distribution.
We have reduced our absolute emissions by 164,556 tCOe from
FY24 to FY25. This has largely been driven by a further reduction
in our intake of purchased goods for resale. Although through this
volume reduction we are on track to deliver our FY30 target, our
focus remains on improving the carbon intensity of our supply
chain and products by focusing on clean energy, sustainable
materials, and supply chain efficiency.
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ASOS Plc Annual Report and Accounts 2025
Reduce absolute Scope 1 and 2 GHG emissions by 45% by
FY30 from our FY22 baseline; and source 100% renewable
electricity across the ASOS Estate by FY27.
This year we joined RE100, a global initiative bringing together the
world’s most influential businesses committed to using 100%
renewable electricity in their operations. We have increased our
procurement of renewable electricity across the ASOS Estate by
7ppts. This was driven by switching our Atlanta fulfilment centre
(now mothballed) onto 100% renewable electricity.
We also submitted our first annual action plan in line with the UK
Energy Savings Opportunity Scheme requirements. We have
completed energy audits across all our UK and EU sites, and are
now scoping a number of initiatives across our fulfilment centres
and offices to reduce energy usage.
FY25 FY24
Renewables 89.5% 82.2%
Scope 1 & 2 emissions (tCO
2
e, Market Based)
FY25 FY24
% change
YoY
% change
vs baseline
FY22
baseline
4,946 5,153 -4% -22.9% 6,417
Energy consumption overview:
Unit
measurement
UK portion Total global
FY25 FY24
%
change FY25 FY24
%
change
Energy consumption: used to calculate emissions for gas &
electricity
MWh 25,006 32,477 -23% 44,558 57,171 -22.1%
Scope 1: emissions from combustion of gas
tCOe 1,286 1,580 -18.6% 2,524 2,781 -9.2%
Location Based (LB)
Scope 2: emissions from purchased electricity
tCOe 3,620 5,183 -30.2% 8,351 9,125 -8.5%
Intensity ratio – total tCOe/£m revenue (LB)
tCOe/£m
revenue
– – – 3.38 3.15 -7.3%
Market based (MB)
Scope 2: emissions from purchased electricity (MB)
tCOe 0 0 – 2,422 2,372 2.1%
Intensity ratio – total tCOe/£m revenue (MB)
tCOe/£m
revenue
– – – 0.98 0.82 19.6%
Reduce absolute Scope 3 emissions from purchased
goods and services and upstream transportation and
distribution* by 42% by FY30*.
* In line with Science Based Targets initiative guidance this target covers 100% of
emissions relating to Purchased Goods for Resale (Category 1a) and 12.9% of emissions
relating to Upstream Transportation and Distribution (Category 4).
Emissions (tCO
2
e)
FY25 FY24
% change
YoY
% change
vs baseline
FY22
baseline
683,840 793,632 -13.8% -46.5% 1,279,137
Own brands emissions
We increased the volume of verified Higg FEM responses across
our Tier 1 facilities this year. Tier 1 facilities reporting their
emissions increased from 58% of our intake volume in FY24 to 81%
of our intake volume in FY25. We have also improved visibility of our
mills and wet processors, and were able to increase the number of
these facilities reporting their environmental performance to
ASOS from 60 in FY24 to 179 at the end of FY25.
To help us meet our commitments, we’ve recently partnered with
TrusTrace, a global leader in supply chain traceability, to drive
greater transparency across our operations; and updated our
Product Lifecycle Management (PLM) systems to capture new,
more granular product data relating to sustainability. Both
systems will help us to prepare for compliance with emerging ESG
legislation including digital product passports and product
environmental footprints.
Partner brands emissions
This year we joined Fashion LEAP for Climate, offering our brand
partners support on their decarbonisation journeys. To date,
three partner brands have completed the programme, four are
currently progressing through, and eight brands are in discussion
to participate in future. A total of 166 partner brands have now
set science-based targets for decarbonisation.
We also recognise the increasing data and disclosure we are
requiring from our brand partners. We’re therefore collaborating
with peers and other industry stakeholders on an industry-wide
solution to support emissions data gathering and monitor
progress towards brand-specific decarbonisation pathways.
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ASOS Plc Annual Report and Accounts 2025
Nature
Related material topics:
biodiversity; water
Risks
ASOS faces nature-related risks from
material sourcing, water-intensive
production, and pollution, which
threaten biodiversity and ecosystems.
These risks — exacerbated by
climate change — can lead to issues
with materials sourcing, increased
regulatory compliance costs,
reputational damage, and potential
fines, particularly under emerging
legislation like the Corporate
Sustainability Due Diligence
Directive (CSDDD).
Additional disclosures
Our approach
We remain committed to better
understanding our impacts and
dependencies on nature. Water is our
initial focus, as water use has a significant
impact on biodiversity. We gather data on
water use and water stress through the
Higg Facility Environmental Module (FEM).
In FY24 we carried out a baseline analysis
of the water stress of our Tier 1 (final
stage manufacturing) suppliers, mills
and wet processors to assess the water
scarcity risks and flooding risks in our
supply chain, using the WWF Water
Risk Filter. Initial analysis highlighted
the impact of using virgin materials
within our water footprint. Aligned to
our FWI targets, we plan to increase
our procurement of more sustainable
materials which are less water intensive.
Sustainability cont.
Planet
In FY25 we incorporated new requirements
for freshwater reduction and flood
resilience planning into our Supplier
Code of Conduct. This year, we plan to
critically review our water footprint,
conduct a detailed gap analysis of our
framework and define next steps for
improving ASOS’ water strategy. We
expect to enhance our approach over
the years ahead using insights from
our double materiality assessment and
improved supply chain transparency.
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ASOS Plc Annual Report and Accounts 2025
Product
30
ASOS Plc Annual Report and Accounts 2025
Resource
use
Related material topics:
resource use; pollution
Risks
There are risks associated with
the type and quantity of resources
we use across our supply chain,
own operations, and at end of
life for packaging and products.
These risks can come from a wide
range of sources, including fossil
fuel extraction associated with
the production of flexible plastic
packaging and synthetic fibres;
use of water, pesticides, and
fertilisers in cotton farming; or
how we circulate materials and
products back into the ecosystem
at the end of life. Poor management
of our resource use could lead
to environmental impacts as well
as reputational impacts or fines
for ASOS due to non-compliance
with due diligence regulations.
Opportunities
Our targets and commitments
within our Product pillar continue
to strengthen our business,
improve our customer offer, and
help us prepare for upcoming
legislation. As well as reducing our
environmental impact, increasing
our uptake of more sustainable
materials helps to mitigate the
impact of proposed future Extended
Producer Responsibility legislation
for textiles and packaging by
reducing the fees we could be
required to pay. Our targets and
commitments also require close
collaboration with our suppliers and
partners, offering an opportunity
to further strengthen our existing
long-term supplier relationships.
The most significant changes to our
product strategy over recent years
have come through the changes
we’ve made to our commercial
model, focusing on speed to market,
flexible fulfilment, and better
aligning inventory to sales. Enhanced
product durability, one of the key
aspects of circular design, and our
wider commercial strategy will also
ensure we’re delivering good quality
products that our customers can
love and rely on for years to come.
Strategic progress
Increase our use of more
sustainable materials in our ASOS own
brand clothing products. Each year,
we’ll set a target for the proportion of
the materials in our products that
we’d like to be more sustainable, and
report back on our progress.
FY25 performance
FY24
FY25
FY26
45%
50%
34%
50%
Target Result
We made significant progress in increasing
our percentage of sustainable materials
from 34% to 50%, exceeding our
target of 45%.
We reviewed and updated our list of
approved more sustainable materials,
while maintaining the same standards.
This has unlocked greater flexibility for
our product teams in using new fabrics
that serve the needs of our customers
while also giving us the opportunity to
reduce our environmental impacts.
Looking ahead to FY26, our priority is to
consolidate the strong progress achieved
in FY25 and prepare for our next step-
up in ambition. We’ll concentrate on
strengthening our fabric strategy and
broadening our use of more sustainable
materials, as well as improving data
integrity and traceability through our
integration of TrusTrace. Maintaining
a minimum of 50% more sustainable
materials next year allows us to embed
these changes and focus on data accuracy
and integrity before setting the next
phase of increased targets from FY27.
All material calculations, except Better
Cotton, are based on our internal
tonnage methodology, which uses a
series of documented estimates and
assumptions, such as product weight
and overall composition. Following
the analysis completed last year, we
do not consider these estimates or
assumptions to be materially sensitive.
More detail is available at:
asosplc.com/sustainability
/fashion-with-integrity/
Our approach
Circularity
Design and production are key components
of our circularity framework, as they
determine our ability to design products
for circularity, influence our approach to
material waste, and offer the potential to
minimise our use of chemicals, water, and
energy. Our approach to design and
production is supported by our circular
design strategies, which align with the UK
Textiles Pact’s Circular Design Toolkit.
Our circularity framework supports the
implementation of these strategies by
introducing a commitment to train our
suppliers on circular design, building
on the learnings from our circular
design collections and our continued
engagement with industry initiatives.
Sustainable materials
Key to reducing our resource use is
switching conventional fabrics and
materials to more sustainable and
recycled alternatives. We define
these as materials that have on
average a lower environmental impact
during the production of the material
than the conventional form.
To deliver this switch, we set seasonal
targets across our three main fibres:
cotton, polyester and man-made cellulosic
fibres such as viscose. We embed these
targets within our product teams by
setting individual product team targets
based on each product team’s unique
fibre mix and sourcing strategy.
1 For a full definition and a list of the materials and certifications we accept, head to page 54
of our Fashion with Integrity Strategy Update on asosplc.com/ fashion-with-integrity/.
Sustainability cont.
Product
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ASOS Plc Annual Report and Accounts 2025
Test and introduce innovative
packaging materials and solutions,
reducing overall usage where
appropriate. By FY26, we’ll
increase recycled content
in plastic mailing and garment
bags to a minimum of 95%.
FY25 performance
N/A
We’re currently reviewing how we track
and validate performance against our
95% post-consumer waste target.
As part of our commitment to packaging
innovation, in July 2025 we delivered
our first customer-facing paper mailing
bag trial, building on the results of an
internal ASOS paper mailing bag pilot
we conducted last year. During the trial
we collected customer feedback and
monitored impacts on our fulfilment centre
efficiency, logistics network, and customer
delivery promise. The results of the trial will
continue to inform our activity in this area.
Train the manufacturers of our
ASOS own brand clothing products on
our ASOS Circular Design Strategies.
By FY27, we’ll have launched a phased
training programme prioritising
suppliers based on their level of
business with ASOS.
FY25 performance
On track
Together with the Centre for Sustainable
Fashion (CSF), we designed an in-depth
and comprehensive training programme
to explain our Circular Design Collection
requirements, aligned with supplier
needs. Over the year we started
to rollout this training to suppliers
through one-to-one training, enabling
us to hear and respond to feedback
and build stronger, more collaborative
relationships with our suppliers.
This training has enabled the continued
development of circular design products
across different departments within
ASOS. Our initial focus has been on
denim and jersey with the products
due to launch early in FY26.
Facilitate recovery programmes to
keep products in use at their highest
value. By FY27, we’ll pilot or launch
new circular business models across
resale, rental, takeback and repair.
FY25 performance
Delayed
As part of our commitment to providing
customers with the best and most
relevant product, we now offer our
customers access to a dedicated vintage
section on ASOS.com, with thousands
of products available from a curated
selection of vintage fashion boutiques,
with sales growing year-on-year. The
number of ASOS options available for
rental on Hirestreet has also increased
by over 50% compared to last year.
We’ve made less progress on our care and
repair propositions than planned but have
engaged with potential external partners
to explore future opportunities.
ASOS (Group level, including Topshop)
Material
Tonnes
acquired
FY25 YoY %
% of
overall mix
(to nearest
0.1%)
FY25 YoY
% of material
more
sustainable
FY25 YoY
Cotton 6,400 5% 46.0% (3.5)ppts 86% 32ppts
Polyester 5,042 33% 36.3% 5.4ppts 20% 7ppts
Man-made cellulosic fibres (MMCF) 959 -8% 6.9% (1.6)ppts 41% 8ppts
Acrylic 595 14% 4.3% No change 0% No change
Nylon 419 13% 3.0% No change 3% 2ppts
Other (including elastane, linen,
polyurethane, wool, leather and suede) 487 4% 3.5% (0.3)ppts 0% No change
Total 13,902 13% 100% 50% 16ppts
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ASOS Plc Annual Report and Accounts 2025
Our approach
Our Chemical Policy & Restricted
Substance List (RSL) has been developed
to comply with legislative and regulatory
requirements of global trading territories
we sell within, including REACH and
Proposition 65. It outlines the acceptable
limits of potentially toxic or harmful
substances which can be present in
finished products. Compliance with
the RSL is mandated through the
terms and conditions agreed between
ASOS and our suppliers and brand
partners. We provide comprehensive
support to assist our suppliers and
brand partners in conducting risk
assessments of products and necessary
chemicals. This support includes training,
connections to global testing facilities,
and access to the ASOS Chemical App;
and for ASOS suppliers, education
through the ACCT (ASOS Certified
Chemical Technologist) programme.
Additional disclosures
Chemical
compliance
& wastewater
management
Related material topics:
water; pollution
Risks
Effective and robust chemical
management through our supply
chain ensures that the products
we sell comply with regulations,
are safe for our customers, and
do not contribute to pollution.
Water is a vital component in
fashion production, from growing
raw materials to dyeing or
manufacturing. Failures in chemical
compliance, water usage and
wastewater discharge can lead
to reputational, legal or financial
impacts for ASOS or depleted or
polluted water sources and impacts
to biodiversity and human health.
We require suppliers to conduct
chemical testing on high-risk chemicals
where relevant, through independent
third-party testing centres or
certifications, supported by additional
due diligence testing. New partner
brands onboarded onto ASOS are
expected to provide an RSL, as well as
current chemical and test reports.
We’re a signatory member of the Zero
Discharge of Hazardous Chemicals
(ZDHC), Roadmap to Zero programme
and ask suppliers to follow the ZDHC
Chemical Management System Technical
Industry Guide. We work closely with our
suppliers and mills to ensure hazardous
chemicals are identified through InCheck
reports, and ClearStream reports
and are replaced with safer chemicals.
We’ve started mapping wet processing
suppliers and onboarding them to the
ZDHC Roadmap to Zero programme.
This year we achieved Champion level in
the ZDHC Brands To Zero assessment.
We require Tier 1 (final stage
manufacturing) suppliers to complete
the Worldly Higg FEM to enable us to
monitor compliance with wastewater
discharge. As not all suppliers complete
the FEM, we are not able to report an
overall compliance rate. In calendar year
2024 (our most recent full dataset),
we had four self-reported wastewater
permit non-compliances from our Tier
1 suppliers, and eight self-reported
discharge permits out of compliance in
our mills and wet processors. Information
on calendar year 2025 will be available
in next year’s Annual Report.
More information on our approach is
available at asosplc.com/sustainability/
fashion-with-integrity/.
Environmental
due diligence
Related material topics: climate;
biodiversity; water; pollution
Risks
Inadequate due diligence could lead
to uncontrolled or unaddressed
impacts on communities,
biodiversity, the environment or
people. As well as external impacts,
this could pose risks to ASOS through
non-compliance with due diligence
regulations, or associated legal,
financial, or reputational impacts.
Our approach
Own brands
Prospective suppliers are expected to
provide information related to sources
of energy, carbon emissions, and water
use prior to being onboarded as an ASOS
supplier. Once onboarded, suppliers are
expected to complete the Higg FEM from
the following calendar year, supporting
ongoing assessment and monitoring of
their environmental performance and
impacts. Tier 1 suppliers representing 78%
of our FY25 intake volume completed an
FEM. We continue to prioritise increasing
FEM completion rates to 100%.
Prospective mills are expected to provide
information related to sustainable
materials, sources of energy, chemicals
and water use prior to being onboarded as
an ASOS mill. We have improved visibility of
our existing mills and wet processors and
were able to increase the number of these
facilities reporting their environmental
performance to ASOS from 60 in FY24 (for
the 2023 calendar year) to 179 at the same
point in FY25 (for the 2024 calendar year).
Partner brands
New brands are screened using a Self-
Assessment Questionnaire (SAQ) or
equivalent disclosures such as Higg
BRM reports, B Corp Impact Reports or
equivalent retailers’ questionnaires, with
a focus on promoting transparency with
brand partners. These responses help
us assess supply chain transparency
and ethical practices. We validate these
responses through risk analysis that
combines SAQ data with desk-based
evidence and supply chain mapping. Where
gaps are identified, we work directly with
partners to implement corrective action
plans and drive continuous improvement.
We actively seek opportunities to
engage in regular, meaningful dialogue
with strategic partners regarding our
approach to sustainability, with the aim
of fostering continuous improvement
and driving industry-wide alignment.
Sustainability cont.
Product
33
ASOS Plc Annual Report and Accounts 2025
People