Interim Results for the six months to 28 February 2023

Interim Results for the six months to 28 February 2023

10 May 2023

Interim Results for the six months to 28 February 2023

Executing on Driving Change agenda, creating strong foundations for a return to profitability and cash generation in H2 FY23 and beyond

Summary financial results 




Six months to 28 February 2023


Six months to 28 February 2022




CCY2 change


CCY change excluding Russia2,3,4

Headline measures






Group revenue5






Adjusted gross margin6






Adjusted EBIT6






Adjusted EBIT margin6






Adjusted (loss)/profit before tax6






Net debt6






Free cash outflow6






Statutory measures






Gross margin






Operating loss






Reported loss before tax







Strategic Update

  • Despite the ongoing challenges in the operating environment, ASOS is on track to deliver full year targets of:
    • Over £300m of Driving Change agenda benefits, with over £100m delivered in H1. Actions already taken will drive more than 95% of c.£200m profitability benefits expected in H2 FY23;
    • Inventory reduction of c.20% year-on-year (‘YoY’), with 9% reduction vs FY22 achieved in H1, slightly ahead of plan;
    • Adjusted gross margin improvement of c.100bps, with recent run-rate up more than 300bps YoY;
    • Profitability and cash generation in H2 FY23 and beyond, with £40-60m adjusted earnings before interest and tax (‘EBIT’) and over £150m free cash inflow7 in H2 FY23.
  • Robust and flexible balance sheet with an amendment and extension of existing £350m revolving credit facility (‘RCF’) through to November 2024. The facility steps down over the term, reducing to £220m by August 2024. The Company had cash and undrawn facilities over £400m at 28 February 2023.
  • Refreshed management team, with newly formed Management Committee now largely complete.
  • ASOS remains focused on executing the final stages of its Driving Change agenda, creating strong foundations for its next phase of growth. 

H1 Results Summary

  • Revenue8 declined by 7% (down 8% on a reported basis) in H1 FY23 and 15% in P2 FY23, reflecting both deliberate actions on capital allocation to improve profitability and a challenging trading backdrop. The actions taken account for broadly 50% of the revenue decline since December but are driving improving order economics.
  • Sales momentum in January and February reflected: (1) planned profitability actions including reduced markdown, discipline on marketing spend and country-specific proposition changes; (2) reduced width in the assortment as the Company took decisive action to right-size stock; and (3) a challenging online retail environment as online penetration declined YoY - although remaining notably higher than pre-pandemic.
  • UK sales were down 10% YoY, Europe flat, US down 7% and Rest of World down 12%. Variation in performance reflects regional differences in the economic backdrop as well as country-specific profit actions taken by the Company in-line with its focus on profitability over top-line growth. The regional trends in sales growth were reflected in active customer numbers in the period. However, ASOS has continued to grow its share of its core UK online retail market among its main 16-35 demographic and has increased its share of its customers’ wallets9.
  • Adjusted gross margin10 was broadly flat, both YoY and from P1 FY23, at 42.9%. It showed encouraging progress over the period, with February adjusted gross margin up more than 300bps YoY and sustained through March and April, supported by lower freight and duty rates.
  • Stock has been reduced by 9% from the level reported at FY22, slightly ahead of the 5% H1 FY23 reduction planned at the time of the P1 FY23 update.
  • H1 FY23 adjusted EBIT loss was £69.4m and adjusted loss before tax was £87.4m. Actions taken under the Driving Change agenda had a positive profit impact of more than £100m, partially offsetting anticipated headwinds of c.£180m (predominantly from inflation and normalisation of return rates).
  • The reported loss before tax of £290.9m includes £203.5m of adjusting items, primarily relating to the execution of the Driving Change agenda. These include £128.2m relating to the previously announced stock write-off and £49.4m of non-cash property impairments and closure costs relating to the reduction of the Company’s head office and logistics footprint. The cash outflow relating to adjusting items in the period was £23.0m. Further detail on the adjusting items is included in note 3 on pages 23-26.
  • Free cash outflow11 for the half was £262.7m mainly driven by the reported loss in the period, H1-weighted historical committed capex investment of £115.0m and the phasing of stock receipts and payments, with the cash benefit associated with the lower H1 intake expected in H2 FY23.
  • ASOS ended H1 FY23 with cash and undrawn facilities totalling £408.6m at what is typically the seasonal trough in its net working capital cycle.

Current Trading & Outlook

  • Sales momentum in P2 FY23 (-15% CCY ex-Russia) has broadly continued into March and April with approximately half of the sales decline driven by planned Driving Change initiatives. However, with adjusted gross margin run rate up more than 300bps YoY, adjusted gross profit was broadly flat YoY over the same period, reflective of the prioritisation of profitability over growth.
  • ASOS will retain its focus on profitable sales in H2 FY23 and its commitment to exit the year with a cleaner inventory position. If there is no improvement to the external trading environment, expectations for H2 FY23 are:
    • Sales (CCY ex-Russia) decline of low double-digit YoY;
    • Adjusted gross margin up c.200bps YoY;
    • Inventory reduction of c.20% YoY;
    • Adjusted EBIT of £40-60m, adjusted EBIT margin c.3%;
    • Free cash inflow of over £150m, excluding all incremental refinancing costs (interest, arrangement and advisor fees). This equates to over £125m free cash inflow including refinancing costs;
    • Capex of £60-85m (in-line with FY23 guidance of £175-200m);
    • Interest expense of c.£30m, including amortisation of arrangement fees and related costs;
    • EBIT impact of adjusting items in the range of £25m-£30m in H2 FY23, of which £15m is non-cash (mostly relating to the Driving Change agenda).
  • For FY23, free cash outflow (prior to incremental refinancing costs) will be around £100m (i.e. around the bottom end of the £0 to £100m outflow guidance provided at FY22). 

José Antonio Ramos Calamonte, Chief Executive Officer said:

“Our focus is on improving our core profitability, prioritising order economics over top-line growth and I am pleased with the strategic and rapid operational progress the business has made in the first half of the financial year, against some very challenging trading conditions. Thanks to the hard work and commitment of our teams, we have accelerated the roll-out of our new commercial model, delivered more than £100m of profit optimisation and cost saving initiatives, extended our financing facility and continued to build out our top team while remaining committed to our Fashion with Integrity agenda. Taken together, these measures will create a more sustainably profitable and cash generative business as we reinforce our position as a leading destination for our fashion-loving customers.

“While some of these changes have impacted short-term sales growth, there are many causes for optimism as we progress through the second half of the year. We are improving our gross margin run rate in the face of significant headwinds, are starting to see the benefits of a repositioned stock profile, and are taking action to reduce the proportion of our sales which are not profitable. Initiatives are in place to drive a further c.£200m of benefit in the second half and I am very confident of our return to sustainable profit and cash generation in the second half of the year and beyond.”


Click here to read the full RNS


The amendment and extension to Revolving Credit Facility agreed with the Company’s banking syndicate constitutes inside information. This announcement therefore includes inside information.

The person responsible for arranging the release of this announcement on behalf of ASOS is Emma Whyte, General Counsel and Company Secretary.



1 All numbers subject to rounding throughout this document.

2 Constant currency is calculated to take account of hedged rate movements on hedged sales and spot rate movements on unhedged sales.

3 Calculation of metrics, or movements in metrics, on an ex-Russia basis involves the removal of Russia from H1 FY22 performance. This adjustment allows YoY comparisons to be made on a like-for-like basis following the decision to suspend trade in Russia on 2 March 2022.

4 Excludes one-off jobber income in relation to the stock write-off program of £2.1m in H1 FY23. Further detail on the adjusting items can be found in note 3 on pages 23-26.

5 Includes retail sales, wholesale and income from other services.

6 Definitions of the adjusted performance measures used above and throughout this document can be found on pages 45-46.

7 Free cashflow guidance is excluding all incremental refinancing costs (interest, arrangement and advisor fees).

8 All sales numbers quoted in this document are at constant currency and exclude Russia from the H1 FY22 comparative base period unless otherwise stated.

Share of UK online retail market based on Kantar | Total Market | Total Clothing, Footwear and Accessories | 16-35 year olds |  Market Shares | 24 w/e 5th March 2023 vs LY, share of customers’ wallets based on Kantar | ASOS Shoppers | Online | Spend % I 24 w/e 5th March 2023 vs LY.

10 Excluding the gross profit impact of the stock write-off of £119.7m announced at FY22 and non-underlying sales tax of £4.9m. Reported gross margin of 36.1% (down 700bps YoY). Further detail on adjusting items can be found in note 3 on pages 23-26.

11 Definition of free cash outflow can be found on pages 45-46. 

Investor and analyst meeting:

The Company will be hosting an in-person presentation for analysts and investors at 9.00am at ASOS HQ, Greater London House, NW1 7FB. For those unable to attend in person a live webcast will be available, and a recording of the presentation will be uploaded to the ASOS investor relations website afterwards.

To access live please dial +44 203 901 7895  and use Meeting ID: 882 4156 1706 and passcode: 747285. A live stream of the event will be available here.

A recording of this webcast will be available on the ASOS Plc investor centre website after the event:


For further information:

ASOS Plc                                                                          

Tel: 020 7756 1000

José Antonio Ramos Calamonte, Chief Executive Officer

Katy Mecklenburgh / Sean Glithero, Interim Chief Financial Officer

Michelle Wilson, Senior Director of Strategy and Corporate Development

Holly Cassell, Head of Investor Relations




Headland Consultancy


Tel: 020 3805 4822

Susanna Voyle / Stephen Malthouse / Rob Walker




JPMorgan Cazenove 

Tel: 020 7742 4000

Bill Hutchings / Will Vanderspar




Numis Securities    

Tel: 020 7260 1000

Alex Ham / Jonathan Wilcox / Tom Jacob



Matthew Armitt / Richard Bootle / Marie Moy



Tel: 020 3207 7800


Background note

ASOS is a destination for fashion-loving 20-somethings around the world, with a purpose to give its customers the confidence to be whoever they want to be. Through its app and mobile/desktop web experience, available in nine languages and in over 200 markets, ASOS customers can shop a curated edit of over 60,000 products, sourced from nearly 900 global and local third-party brands alongside a mix of fashion-led own-brand labels – ASOS Design, ASOS Edition, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge and HIIT. ASOS aims to give all of its customers a truly frictionless experience, with an ever-greater number of different payment methods and hundreds of local deliveries and return options, including Next-Day Delivery and Same-Day Delivery, dispatched from state-of-the-art fulfilment centres in the UK, US and Germany.

Forward looking statements:

This announcement may include statements that are, or may be deemed to be, “forward-looking statements” (including words such as “believe”, “expect”, “estimate”, “intend”, “anticipate” and words of similar meaning). By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances, and actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect management’s view with respect to future events as at the date of this announcement. Save as required by applicable law, the Company undertakes no obligation to publicly revise any forward-looking statements in this announcement, whether following any change in its expectations or to reflect events or circumstances after the date of this announcement.

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