ASOS (LSE:ASC) shares traded positively in Thursday's early trade, after it revealed it had swung to a £24.4m pre-tax profit from a £281.6m loss in the year to 30 August.
The online fashion retailer’s gross merchandise value (GMV) rose in the fourth quarter, its first year-on-year increase since 2022.
Full-year GMV still fell 5% to £2.35bn and adjusted revenue dropped 9% to £2.24bn.
Better buying terms and a focus on full-price sales helped lift adjusted gross margin by 3.4 percentage points to 50.5%. Adjusted EBITDA rose 29% to £170.3m, while the adjusted pre-tax loss narrowed to £46.4m from £98.2m.
GMV was broadly flat year-on-year in the opening weeks of the new financial year.
ASOS temporarily paused marketing after a cyber incident on 6 October and estimates the disruption cost it 2% to 4% of group GMV over the period since the incident.
For the year ahead, ASOS said it expects low-single-digit GMV growth and adjusted EBITDA of £180m to £200m. It also expects free cash flow to turn positive after a £16.4m outflow last year.
In London, ASOS shares climbed 24.12p or 5.7% to 446.12p
