Asos Shares Surge Again as H1 Earnings Expected to Beat Consensus

Asos (LON: ASC) extended Thursday’s rally on Friday, following news that the online fashion retailer expects first-half earnings to exceed analyst expectations.

The stock is up more than 15% Friday, trading at over 294p a share.

Asos confirmed in a trading update on Friday that adjusted EBITDA for H1 FY25 is expected to come in ahead of consensus, with revenue growth broadly in line. 

The company attributed the improvement to strong gross margin performance, driven by fewer markdowns, a higher full-price sales mix, and disciplined cost control.

Additionally, the retailer highlighted a return to growth in full-price sales of its own-brand products, a key driver of its business. 

Asos credited its Test & React model, which allows it to quickly adapt to emerging fashion trends, for helping it capitalise on demand.

The latest update comes after Asos’s shares turned sharply higher in the previous session. 

On Thursday, the stock jumped over 10% after billionaire investor Anders Holch Povlsen—Asos’s largest shareholder—increased his stake to just over 28%, edging closer to the 30% threshold that would trigger a mandatory takeover offer under UK regulations. 

Povlsen, who also owns a major stake in Zalando and clothing retailer Bestseller, has steadily increased his position in Asos.

With Mike Ashley’s Frasers Group as the second-largest shareholder, speculation over potential corporate moves continues to add to investor optimism, fueling further gains in the stock.