ASOS forecast fiscal 2026 profit to be largely below analysts' expectations on Friday, as weak consumer demand weighs on the British fast-fashion retailer amid its efforts to check costs and revive the brand's appeal.
The firm is undergoing turnaround efforts to bolster income through cost-saving measures, such as inventory reduction and restructuring, as it also works to revive its fast-fashion appeal among its core base of shoppers in their 20s, Reuters said.
The company expects adjusted core profit for fiscal 2026 between 150 million pounds and 180 million pounds ($196.22 million and $235.46 million).
However, at the midpoint of 165 million pounds, that is below analysts' average expectation of 173 million pounds, according to a company-compiled poll.
In the UK, the group's biggest market, many Britons are delaying non-essential purchases amid sticky inflation and a high cost of living, waiting for Black Friday deals and the budget, which is adding to the pressure.
Adjusted core profit stood at 131.6 million pounds for the full year to August 31, missing estimates of 138 million pounds.
