ASOS can face US tariffs fallout due to improved agility, flexibility
British online fashion retailer ASOS posted higher half-year earnings for the 26 weeks to March 2, saying it can cope with the fallout from US tariffs due to 'improved agility and flexibility' of its sourcing and distribution model despite facing new upheavals from tariffs and trade turmoil.
Its half-year adjusted earnings (EBITDA) for the period was £42.5 million (~$56.57 million). The company said it is on track for annual earnings to hit £130-£150 million (~$173.04-199.7 million).
ASOS posted higher half-year earnings for the 26 weeks to March 2, saying it can cope with the fallout from US tariffs due to 'improved agility and flexibility' of its sourcing and distribution model despite facing new upheavals from tariffs and trade turmoil. Its half-year adjusted earnings for the period was $56.57 million. It said it is on track for annual earnings to hit $173.04-199.7 million.
The United Kingdom is ASOS's biggest market, but the United States accounts for about 10 per cent of its total sales.
Customers are responding well to increased newness and speed to market as gross margin was up year on year (YoY) in the first half (H1) of fiscal 2024-25 of the company, driven by lower markdown activity and higher full-price mix, demonstrating strength of new commercial model offering, the company said in its summary of financial results.
In the United Kingdom, total ASOS Design sales rose by 9 per cent YoY in H1. Globally, own brand full-price sales returned to YoY growth in the first half.
"H1 FY25 is the strongest sign yet that our new commercial model is working. We are driving a significant transformation in profitability, with positive adjusted EBITDA up by c.£60 million YoY. Customers are responding positively to our focus on full-price sales, speed to market, and quality,' Jose Antonio Ramos Calamonte, chief executive officer said.
'These successes have been achieved whilst maintaining strong cost control and improving our inventory health. We look forward to a fantastic pipeline of new products, brands and customer experiences, and remain confident in our ability to deliver sustainable, profitable growth," he added.
Initiatives in the second half include launching Topshop.com, ASOS.WORLD loyalty programme, live shopping features, enhanced search and personalisation, as well as further leveraging artificial intelligence across the business.
Fibre2Fashion News Desk (DS)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fibre2Fashion
2 hours ago
- Fibre2Fashion
Regulations could further dampen UK retail jobs in 2025 & beyond: BRC
Future regulations could further dampen UK retail jobs this year and beyond, according to the British Retail Consortium's (BRC) 'Retail Employment in 2025' report, which said though the Employment Rights Bill aims at improving employment practices, several aspects of the bill could raise costs and reduce employment without improving the life of workers. A recent survey of retail human resource directors showed that 61 per cent believed the bill would reduce flexibility in job offerings (versus 23 per cent saying flexibility will stay unchanged and 7 per cent saying such flexibility will increase), while over half believed it would reduce staff numbers for their company. Retail employment in the United Kingdom has already reduced by over 350,000 since 2015. Over 250,000 of these jobs have been part-time roles and over 280,000 have been jobs held by women. This is despite the total number of jobs in the economy rising. Future regulations could further dampen UK retail jobs this year and beyond, a British Retail Consortium report said. Though the Employment Rights Bill aims at improving employment practices, several aspects of the bill could raise costs and reduce employment without improving the life of workers, it said. Employment costs have risen significantly, posing a major challenge to the retail sector. Employment costs have risen significantly, posing a major challenge to the UK retail industry. Over the last decade, the minimum wage has almost doubled from £6.50 per hour to £12.21 per hour for those over 21. This is far outpacing inflation, which has risen by around a third over the same time period, the report observed. The rise in National Living Wage in April 2025 is expected to add £2.74 billion to wage bills of UK retailers. Together, the changes to National Living Wage and employer national insurance contributions have raised the cost of hiring a full-time worker by 10 per cent, and a part-time worker by over 13 per cent. The disproportionate impact on part-time workers, mainly as a result of the changing employer National Insurance minimum threshold, has meant that many flexible jobs are now at risk, with the BRC estimating that up to 160,000 part-time roles—more than one-in-ten—could be lost in the next three years. Retail jobs of the future will be characterised by increased flexibility, technology integration, continuous skills development and a strong emphasis on inclusivity and diversity, ensuring a better work-life balance, noted the report. Both the Growth and Skills Levy and the Employment Rights Bill will significantly affect how the industry drives future investment in its retail workforce, it added. Fibre2Fashion News Desk (DS)
Hans India
3 hours ago
- Hans India
Kashmir's rail revolution is a tribute to govt resolve and grit
On a clear June day, draped in marigold flowers and national pride, the Vande Bharat Express began its maiden journey from Shri Mata Vaishno Devi Katra to Srinagar. Flagged off by Prime Minister Narendra Modi, the moment marked more than just the launch of a high-speed train. It was the culmination of a century-old dream—one forged in steel, vision, and unyielding resolve. The rail unification of Kashmir with the rest of India is that resolve. A train to Kashmir with an ultra-modern travel experience runs on the solid foundation of our engineers. Cutting the travel time short, Vande Bharat trains run twice a day, six times a week from both sides. They are not only bringing in the much-needed push for the local economic development in the valley but are emerging as a boon for tourists from all over. For decades, Kashmir's story has been told through the lens of conflict and remoteness. It's heartening to see it being rewritten in the language of infrastructure – bridges, tunnels, and rail lines threading their way through the mountains. Coming on the eve of the 11 years of Modi's governance at the Centre, the special trains and the connecting link are all set to change the destiny of locals in Kashmir. In its 172-year history of service to the nation, Indian Railways has crossed many important milestones. Generations of dedicated railway men and women have toiled to make connectivity and carriage an everyday reality. But to paraphrase a line from an iconic Indian advertisement: Indian Railways doesn't just build tracks—it also knits the fabric of national unity! From isolation to integration Historically, Kashmir's isolation was more than metaphorical—it was geographic and punishingly real. Tucked high in the Himalayas and routinely cut off by snow for days together, the region remained distant not just in reach but even experience. Roads were often treacherous, air travel limited, and full rail connectivity a mirage. A British-era proposal for a Kashmir rail link remained on the drawing board for decades, hindered by complex geopolitical challenges. After countless rounds of deliberations, feasibility studies, technical evaluations, and consultations with both domestic and international experts, the Udhampur–Srinagar–Baramulla Rail Link (USBRL) was officially sanctioned in 1994. While the northern and southern sections progressed steadily and were effectively completed within a decade, the central stretch—from Katra to Banihal—posed an engineering and security challenge of Himalayan proportions. For years, the rail line lingered as two disconnected segments—like outstretched hands reaching across a chasm of mountains. But that chasm symbolized more than just physical terrain. The final push to complete the USBRL project came when the government declared it a national priority. With a firm resolve and cutting-edge technology working in tandem, the project finally saw light at the end of the tunnel—quite literally. As Railway Minister Ashwini Vaishnaw aptly remarked, this was far more than a transportation initiative; it was a nation-building effort. Where steel defies the sky The USBRL project may well be the most ambitious rail initiative since Independence. The 272-km stretch between Udhampur and Baramulla snakes through 40 tunnels and over 900 bridges. And at the center of it all is the record-breaking Chenab Bridge – the tallest railway bridge in the world, standing 359 meters above the riverbed. This engineering marvel is capable of withstanding wind speeds of up to 260 kmph and tremors of seismic zone-V. Beside it stands the: Anji Khad Bridge, the country's first cable-stayed railway bridge, stretching asymmetrically across a valley, anchored by a single pylon and supported by 96 cables. Tunnels, including the 11-kilometer-long T-80 (Banihal - Qazigund) tunnel through the Pir Panjal range, have been carved through fragile rock with a mix of dynamite and human grit. Physical surveys were done on horseback, while drones and satellite imaging provided aerial support. Workers labored through harsh winters, sudden landslides, and the looming threat of Pak-sponsored terrorist attacks. Today, more than 190 km of tunnels and thousands of tons of steel later, the line stands complete – a feat that combines precision engineering with a certain audacity of vision, linking the valley to the rest of the nation in a way that is profoundly symbolic. A train called hope In many ways, the Vande Bharat Express is not just a train, it is a metaphor. It glides quietly through meadows and valleys, bridging distances both physical and psychological, proclaiming that Kashmir is no longer distant! It has reduced travel time between Srinagar and Katra to just over three hours, down from nearly six. What was once a treacherous road journey through landslide-prone hairpin bends and unpredictable weather, is now a smooth ride through tunnels and bridges that defy belief. It connects not only cities, but lives. Children in far-off villages are now talking about universities in Jammu and Delhi. Local artisans, apple growers, and carpet weavers now see their goods reaching markets beyond the valley – fresher, faster, further. 'Where there were checkpoints and delays. There is now the sound of a train. It feels like we're no longer waiting for the rest of the country to arrive, we are moving with it,' said a young shopkeeper in Srinagar. A new journey unfolds This is not to suggest that one train will solve Kashmir's complex problems. Infrastructure cannot erase history or immediately heal wounds – security concerns will need addressing yet. But it can open doors—both literally and symbolically. And it can lay the groundwork for integration that is economic, social, and, ultimately, emotional. What began as a dream on drawing boards in colonial offices has become a reality on steel rails blending with Himalayan rock. The rail line to Kashmir is the story of a country that refused to be daunted by terrain, terror, or time. From mountain shadows to sunlit stations, a new journey has begun! (The writer is former CEO and Chairman Railway Board)
Fibre2Fashion
5 hours ago
- Fibre2Fashion
Port in Cambodia's Preah Sihanouk, China's Jiangyin Port sign pact
Cambodia's Preah Sihanouk province and China's Jiangsu province recently signed a strategic cooperation agreement between Sihanoukville Autonomous Port and the latter's Jiangyin Port. Preah Sihanouk provincial governor Mang Sineth and Zhao Jianjun, governor of Wuxi city in Jiangsu province, signed the agreement in the Chinese city. The three key objectives of the agreement are promoting the development of the Preah Sihanouk Special Economic Zone (SSEZ), attracting investment from Wuxi city to Preah Sihanouk province and fostering people-to-people exchanges, according to a statement from the Preah Sihanouk provincial administration. Cambodia's Preah Sihanouk province and China's Jiangsu province recently signed a strategic cooperation agreement between Sihanoukville Autonomous Port and the latter's Jiangyin Port. The three key aims of the pact are promoting the development of the Preah Sihanouk Special Economic Zone, attracting investment from Wuxi city to Preah Sihanouk province and fostering people-to-people exchanges. Zhao said the target is to attract 300 companies to the Preah Sihanouk Special Economic Zone and create 80,000 jobs. He sought support for the development of the solar and green energy sector and stressed on the need to reduce transportation costs, according to a Cambodian media outlet. Direct flights between Wuxi city and Preah Sihanouk province commenced on May 18, 2025. In the first four months this year, bilateral trade between Cambodia and China reached $5.69 billion, a 27-per cent increase year on year (YoY), according to Cambodian government statistics. Cambodian exports to China saw a slight dip of 1.7 per cent YoY year-on-year during the period, totalling $478.63 million, while imports from China jumped significantly by 30.5 per cent YoY, reaching $5.21 billion. Fibre2Fashion News Desk (DS)
