Asos using AI stylists to help boost flagging sales

Fast fashion firm Asos has revealed it is using artificial intelligence to suggest outfits for shoppers as part of efforts to help turn around tumbling sales.

The online retailer laid bare the scale of its revamp efforts as it said sales plunged 12% in the year to August 31, though it narrowed pre-tax losses to £281.6 million from £379.3 million the previous year.

It pledged a “new era of customer re-engagement” and initiatives to win over more cautious consumers.

This has included its new Styled for You trial feature, using artificial intelligence (AI) to suggest outfits for shoppers.

“Trained on our database of 100,000-plus expertly curated studio outfits, our AI model can serve customers with curated outfit suggestions based around individual products,” Asos said.

The group has also launched a new loyalty programme, called Asos.World.

But shares in the firm tumbled 8% in afternoon trading on Friday as its forecasts for 2025-26 underlying profits missed expectations.

It is guiding for underlying earnings of between £150 million and £180 million, giving a mid-point of £165 million, which is below the £173 million pencilled in by most analysts.

The group said sales would show an “improving trajectory throughout the financial year”.

Chief executive Jose Antonio Ramos Calamonte said: “Our priority for 2025-26 is to deepen our relationships with customers and make Asos not just a place to shop, but a destination for inspiration and style.”

Dan Coatsworth, head of markets at AJ Bell, said: “Asos is trying through a combination of loyalty schemes and technology, using AI to generate outfit inspiration, to drive engagement with its target demographic.”

But he said the company is still “facing increased competition and a downbeat consumer backdrop”.