ASOS Plc posted narrowed losses on Friday, despite a slide in annual sales, as the online retailer's turnaround gathered pace.
Group revenues at the fast fashion brand fell 15% in the year to 31 August to £2.48bn, while gross merchandise value - a key metric for online retailers - was 12% lower at £2.46bn.
The biggest fall in like-for-like sales was seen in the US, where they slumped 22%. Comparable sales were 9% lower in the UK.
However, the gross margin improved to 47.1% from 43.4% a year previously, helping adjusted pre-tax losses come in at £98.2m. Losses reached £126m a year ago.
Asos is looking to overhaul its fortunes after a difficult period, which saw it hit hard by stiff competition from Chinese rivals such as Shein as well as US tariffs.
In response, it is now seeking to cut costs, strengthen the supply chain and shift away from high-volume, low-priced sales towards a full-price sales mix.
Chief executive Jose Antonio Ramos Calamonte said the turnaround was now "well progressed".
He continued: "Our priority for the 2026 full year is to deepen our relations with customers and make Asos not just a place to shop but a destination for inspiration and style.
"I'm more confident than ever that we have the right strategies and capabilities to achieve our ambition to become the most exciting destination for fashion-lovers."
The group is currently forecasting GMV to show an "improving trajectory" through the current year, with a gross margin of between 48% and 50%.
Adjusted earnings before, interest, tax, depreciation and amortisation were slated to come in between £150 and £180m. Adjusted EBITDA in 2025 was £131.6m.
Katie Cousins, analyst at Shore Capital, said guidance was "pretty much in line" with market expectations.
She continued: "While we are pleased to see improved profits and debt positions, we look for further sustained evidence that the engagement strategy is working to ease topline pressures.
"Current strategy seems supportive of this ambition, albeit it is early days. But on 4x EV/EBITDA, we retain our 'buy' recommendation."
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: "While this is all positive, there's still a long way to go and a lot of challenges to navigate before Asos returns to the land of profitability.
"Active customer numbers and order frequency are still heading in the wrong direction. That's partly due to the reduction in discounting activity and the shift away from les profitable customers.
"Challenging market conditions and inflationary pressures are other factors to contend, both of which are out of Asos's control."
As at 0930 GMT, shares in Asos were 3% lower at 240.41p.