Frasers Group has increased its total economic exposure to ASOS to 25.94%, according to a regulatory filing on 24 November. Its direct shareholding, however, remains lower, with Frasers holding a smaller percentage of voting rights, while the remainder comes from derivative‑linked positions such as contracts for difference and options.
Owned by Mike Ashley, Frasers has steadily built up its interest in ASOS and now stands as a major stakeholder alongside Danish fashion group Bestseller A/S, which owns 28%. UK takeover rules require stakeholders to make a formal bid if their voting rights go above 30%. This development raises questions about what lies ahead for ASOS.
The timing of Frasers’ latest move is important. ASOS recently reported its full-year results for the 52 weeks ending 31 August 2025, showing a marked improvement in profitability. This is a direct result of its turnaround strategy, which the retailer implemented after it was hit hard by a post-pandemic sales slump, driven by competition from ultra-fast fashion retailers and the burgeoning preloved market, which caused its value to fall from about £4.7 billion in 2020 to £279 million today.
Latest results show improved profitability
The latest results show adjusted revenue dropped 14% year-on-year to £2.46bn, and gross merchandise value (GMV) fell 12% to £2.46bn. This decline was intentional, as ASOS focused on profitable sales instead of volume. The company reported an adjusted EBITDA of £131.6m, up over 60% from last year, with margins rising to 5.3% from 2.8%. Gross margin increased to 47.1%, up by 370 basis points, thanks to more full-price sales and fewer markdowns.
ASOS reduced its adjusted pre-tax loss to £98.2m, down from £126m in FY24. Net debt also dropped to £184.7m from £297.1m, helped by refinancing and money from the Topshop joint venture. Free cash flow turned positive at £14.1m, showing better inventory management and cost control. These gains come as ASOS grows its “Test & React” model, now making up over 20% of own-brand sales, and expands its Flexible Fulfilment platform, which made up more than 10% of third-party GMV by year-end.
What’s next for ASOS?
ASOS expects its adjusted EBITDA to grow to between £150m and £180m in FY26, with a goal of reaching gross margins of 48–50%. The company is working to re-engage customers through the ASOS.WORLD loyalty program, interactive shopping on ASOS Live, and exclusive partnerships like adidas x ASOS. Relaunching Topshop.com and new wholesale deals with Liberty and John Lewis show a renewed focus on building brand strength and expanding across different sales channels.
This ownership contest adds another layer of interest. Mike Ashley is known for building stakes in fashion and luxury brands, while Bestseller’s Anders Holch Povlsen has strong connections to ASOS and the wider European fashion scene, including Zalando and About You. It is not clear if Povlsen plans to take over ASOS, but Frasers Group’s evolving interest — a mix of direct shareholding and derivative exposure rather than outright ownership — may push him to make a move. If that happens, analysts think ASOS might prefer Bestseller’s more collaborative style, especially since the company has turned down Ashley before, according to the Telegraph.
Both investors clearly see value in ASOS’s turnaround and global growth plans. This suggests the company is getting back on track, even after leaving the FTSE250 earlier this year. As profitability improves and new strategies take hold, ASOS is becoming one of the most closely watched retailers in the UK.
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