In FY25, driven by a significant increase in the full-price sales mix, Asos expects 300 bps increase in gross margin to over 46 percent and adjusted EBITDA to increase by at least 60 percent to 130 million pounds to 150 million pounds.

In the mid-term, the company continues to expect revenue growth, gross margin towards 50 percent and an adjusted EBITDA margin of 8 percent.

Commenting on the full year update, José Antonio Ramos Calamonte, chief executive officer, Asos said: "We achieved our key priorities for the year, significantly reducing our inventory position, while generating positive adjusted EBITDA and free cash flow. There is much work to do, but we have already seen our efforts rewarded with new product sales increasing 24 percent YoY over the last three months."

In a full year results statement, Asos said, during the 52 week period, the company registered an adjusted pre-tax loss of 126 million pounds as sales were impacted by continued challenges in the market, including higher cost of living pressures. The reported pre-tax loss was 379.3 million pounds.

LFL sales for the year declined by 16 percent, while total revenue declined by 9.8 percent to 2,905.8 million pounds. Adjusted EBITDA reached 80.1 million pounds, a reduction of 44.4 million pounds, while both basic and diluted loss per share widened to 284.4p.

Asos sales in the UK declined by 12 percent against a difficult consumer backdrop as a result of the cost of living challenges which impacted the fashion retail sector.

The company added that US sales fell by 28 percent, reflecting the more restrained approach to paid media spend alongside the continued market weakness and the strong competition bolstered by high levels of promotional aggression, which combined led to a 23 percent decline in visits.