British online fashion giant ASOS has reported stronger-than-expected half-year earnings and is optimistic about further growth in 2025. The company also signaled its readiness to adapt to

potential U.S. tariffs by adjusting its sourcing and distribution strategies.

The encouraging earnings update suggests ASOS’s efforts to bounce back—by re-establishing its fast fashion appeal with its core audience of 20-somethings—are beginning to pay off. However, shifting global trade policies, especially concerning tariffs, pose a fresh challenge.

ASOS emphasized that its flexible and responsive business model positions it well to handle global disruptions. “We continue to closely monitor the evolving U.S. tariff outlook,” the company said, “and see opportunity to respond as necessary through improved agility and flexibility of our sourcing and distribution model.”

In the 26 weeks leading up to March 2, ASOS reported adjusted EBITDA of £42.5 million ($56.4 million), topping analyst expectations of £34 million. The retailer remains on track to hit its full-year earnings forecast of £130–150 million.

Facing fierce competition from fast-growing Chinese retailers like Shein and Temu, ASOS announced in January that it would pause operations at its U.S. warehouse. As a result, most American orders are now fulfilled directly from the UK.

Analysts estimate ASOS’s U.S. business will generate around £300 million in revenue this fiscal year, accounting for about 10% of total sales. Photo by Eva Rinaldi, Wikimedia commons.