ASOS’ underlying like-for-like revenue fell 14% to £1.1bn in the first half. This partly reflects the group’s shift towards a more flexible fulfilment model, where ASOS only receives a commission on the value of items sold. Active customer numbers were down 9% to 16.5mn.
Underlying cash profit (EBITDA) jumped 51% higher to £64mn. This was driven by gross margin improvements and continued efforts to reduce supply chain costs.
Free cash outflows rose by 10% to £93mn, due to higher interest costs on its debt. Net debt rose by £19mn to £295mn.
Full-year guidance has been reiterated, with underlying cash profit expected to be in the £150-180mn range, and broadly flat free cash flow.
The shares were broadly flat in early trading.
Our view
HL view to follow.
ASOS key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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