ASOS Share News (ASC)

(Sharecast News) - Shares in Asos jumped on Thursday, after the fast fashion brand confirmed it had refinanced a key loan facility on better terms.

Asos said it had refinanced its asset backed loan facility into a secured term loan and delayed draw term loan with a new syndicate of private lenders, at "materially improved" financial terms.

Those include £87.5m additionally liquidity headroom, increased financial flexibility over an extended five-year term and a £5m like-for-like reduction in cash interest costs.

The fast fashion brand is looking to overhaul its fortunes after a difficult period, which has seen it hit hard by stiff competition from Chinese rivals such as Shein and US tariffs.

In September, shares in Asos tumbled after it warned that annual sales would miss forecasts on the back of weak consumer demand, with profits at the lower end of its forecast range. The stock has now lost 43% in the year to date.

However, investors welcomed the refinancing, sending the shares up 8% to 248.88p as at noon GMT.

The retailer said: "Asos enters the final phase of its multi-year turnaround with a significantly strengthened balance sheet and the right level of flexibility to focus on re-engaging customers at scale.

"The improved financial terms reflect the enhanced profitability and significant straight progress of the company during the successful execution of the first two phases of its journey, focused on building sustainably profitable and resilient foundations."

Peel Hunt, which has an 'add' rating on Asos, said: "The refinancing is another step on the journey back to normality, with the heavy lifting behind the group's recovery programme now complete, returning the business to free cash flow generation.

"We now look for signs of active customer and revenue growth as the business moves through 2026."

Asos is due to publish full-year numbers on 21 November, at which point senior independent director Natasja Laheij will succeed Jorgen Lindemann as chair.