Why is ASOS stock rallying today?

ASOS stock rallied 4.8% today after the London-listed online fashion retailer published its full-year results for the 52 weeks to 30 August 2026, delivering a decisive swing to statutory pre-tax profit of £24.4m from a £281.6m loss the prior year.

Adjusted EBITDA climbed 29% to £170.3m, comfortably ahead of the analyst consensus of £159m, while the company’s adjusted gross margin expanded 340 basis points to 50.5% — surpassing its own medium-term 50% target ahead of schedule.

The headline numbers were accompanied by a forward-looking FY27 guidance range for adjusted EBITDA of £180–£200m, with even the bottom of that range sitting above the analyst average of £177m, providing an additional boost to sentiment.

Net debt fell more than 40% to £109.3m, and GMV returned to year-on-year growth in the fourth quarter for the first time since 2022 — a key milestone in the company’s multi-year turnaround.

A note of caution came from management’s disclosure that a cyberattack in early October had temporarily disrupted trading, particularly in the UK, though early FY27 GMV was described as broadly flat year-on-year despite the incident.

The results landed against a broadly constructive backdrop for UK equities, with the FTSE 100 having surged nearly 1.8% in the prior session and futures pointing to further gains on the open, supported by positive political developments in the US and easing oil prices.

Investors were also positioning ahead of a Bank of England rate decision, with expectations of a rate move adding further momentum to UK financial markets and consumer-facing stocks.

Taken together, the combination of a clean earnings beat, a margin milestone, rapidly improving balance sheet metrics, and above-consensus FY27 guidance proved sufficient to more than offset near-term concerns around the cyberattack’s trading impact, pushing ASOS shares to a session high of 442.5p.