ASOS – the major transformation is happening, it is exciting and there is a lot more to come, Trading Update within days?
Mark Watson-Mitchell - 21.09.2026
It is going to take some time for ASOS (LON:ASC) to return to making a consistent operating profit – however that time span is fast reducing with some analysts suggesting profits within two to three years.
Before the end of this month, possibly within days, we could well be seeing the £504m-capitalised online fast-fashion retail group announcing its Trading Update for the year to end-August.
The transformation process now underway is to turn it from big losses into big profits, recent bullish pointers have been made in the group strengthening its balance sheet, aided by the £48m sale of its Atlanta warehouse and the £66m disposal to Marks & Spencer of its Lichfield operation.
The group’s shares have risen nearly 50% this year to the current 421p – with City analysts looking for a strong upside as the turnaround gathers pace.
The group’s CEO has stated that:
“We are taking decisive steps towards re-establishing ASOS as a leading online fashion destination.
And even more exciting, there's a lot more to come.”
The Business
Founded in 2000, ASOS is a UK-based global fashion retailer, whose operating segments include the UK, Europe, the USA and the Rest of the World.
ASOS has 17m active customers in over 100 markets.
The Group supplies fashion lovers around the world with the best and most relevant fashion through its unique own brands including ASOS DESIGN, ARRANGE, COLLUSION, Topshop and Topman, styled with the most exciting products from local and global partner brands.
The business also provides third-party brands across clothing, accessories and face and body.
Its expert in-house design team and agile and flexible commercial model, including ASOS Fulfilment Services, Partner Fulfils, and Test & React, makes the latest trends accessible to all.
It has fulfilment centres in Barnsley, Berlin and Germany.
The Company has created a personalised, localised and mobile-first shopping experience on its site and app across global markets including the UK, France, Germany and the USA.
Latest Updates
In late May this year it completed the disposal of its Lichfield fulfilment centre to Marks & Spencer with £66m net sales proceeds.
At the start of July ASOS completed the disposal of its Atlanta fulfilment centre and associated automation assets for approximately £48m, marking the end of its non-core asset sale programme.
That disposal aligns with ASOS's strategy to strengthen its balance sheet, simplify its asset base, and improve cash generation.
Management Comment
On Monday 1st July, CEO Jose Antonio Ramos Calamonte stated that:
"The disposal of Atlanta is another clear demonstration of us delivering on our commitments - strengthening the balance sheet, simplifying the business and maintaining strict discipline in how we allocate capital.
Since closing the Atlanta fulfilment centre, we have successfully transitioned to our new US operating model, giving customers access to a broader product assortment from our global inventory.
The strength of customer engagement gives us confidence in this approach and reinforces the progress we are making as we execute our strategy and reposition ASOS for long-term, sustainable growth."
The Equity
There are some 119.82m shares in issue.
The larger holders include Frasers Group (23.37%), Camelot Capital Partners LLC (17.16%), Schroder Investment Management Ltd. (4.96%), Nicholas Robertson (2.20%), Hosking Partners LLP (1.34%), Norges Bank Investment Management (0.92%), Clearstream Banking (0.73%), Hargreaves Lansdown Fund Managers Ltd. (0.54%), LGT Capital Partners AG (Investment Management) (0.50%), and HSBC Global Asset Management (UK) Ltd. (0.46%).
Broker Views
Some 13 firms closely follow the group, of whom just four rate the shares as a Buy, one to Outperform, seven to Hold and the other rates them to Underperform.
The consensus average Target Price is 392p, the Lowest is 245p, while the Highest is 610p per share.
Shore Capital has a Buy with a 520p TP.
Analyst Anne Critchlow, at Berenberg, has a Buy out on the stock, with a 600p Target Price, noting that the transformation of the company means the shares are trading on an ‘attractive valuation’.
Impressed by the recent warehouse disposals and the strengthening of the group balance sheet, her Buy stance on the group reflects her continued belief in the turnaround with the company moving away from a promotional approach backed by performance marketing to a more inspirational and relevant fashion offer.
Analyst Matthew McEachran, at Singer Capital Markets, has a Buy out on the group, with a 610p TP, stating that despite strong share price gains in the year to date the upside risk remains considerable.
His estimates suggest that the year to end-August will have shown sales lower again at £2,243.2m (£2,464.8m), with the adjusted pre-tax loss almost halved at £56.5m (loss £98.2m), resulting in a big reduction in the loss of earnings at 56.5p (-84.2p) per share.
The year now underway could see revenues rise to £2,344.0m, with the loss halved again at £27.7m, slashing the negative earnings to 24.3p.
For the 2028 year, the analyst looks for a further pick-up in sales to £2,426.0m, greatly reducing the loss to just £11.7m, with negative earnings of 10.3p per share.
My View
Nothing in life goes in a straight line – nor has ASOS with massive swings from profits to losses.
However, the major transformation process that is ongoing is showing some rapid results, certainly impressive enough to see analysts now anticipating profits within the next couple of year or so.
Those hopes have driven the share price from a 206p Low in the last year to a 435p High a couple of weeks ago.
They now trade around 421p, at which level risk-tolerant investors could do well taking the optimistic view that there is light at the end of the ASOS tunnel, because when daylight appears the share price will be massively higher.
Perhaps we will get excited after the Trading Update, due within days.
(Profile 21.09.26 @ 421p set a Target Price of 510p)
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