Online fashion retailer Asos is entering the next stage of its transformation, following periods of cost-cutting and strategic changes that have led to a bumper half-year performance.

In a trading update for the six months ending March 1, Asos said its underlying profits had jumped by around 50 per cent over the period. It added a 330 basis point increase in gross profit margin, to 48.5 per cent, saying these figures were “including the negative impact of tariffs”.

The company began its transformation in 2022, following an earnings peak during the pandemic. Asos labeled the 2024 fiscal year as a “transition”, which saw its sales and profits fall, as the company moved into a new operating model.

“The enhancements we have made to the customer experience, including our revitalized app, are helping people to find not just items, but outfits, styled just for them,” said José Antonio Ramos Calamonte, CEO.

Trading in more than 150 markets, Asos said the UK, its largest, outperformed all other major markets, including the US. Its top four markets grew its customer base by 2 per cent year-on-year.

“We are seeing improvements in new customer growth and strong performance in our womenswear business,” Calamonte added. “Both of which are encouraging lead indicators for sales growth. 

“With an accelerated cadence of initiatives still to come this year, we are well positioned to deliver further improvements for customers and the business as our focus remains on sustainable, profitable growth.”