European fashion platform About You Holding SE has reported revenue growth of 19.4 percent for the first quarter to 504.1 million euros.
The company also reiterated its outlook for FY 2022/2023, even as the challenging macroeconomic environment and rising inflationary pressure continue to impact customer behaviour.
Commenting on the first quarter trading, Tarek Müller, co-founder and co-CEO of About You, said: “About You recorded resilient growth throughout the first quarter of this financial year despite the market climate’s current volatility – that’s a huge testament to the strength of our business fundamentals. Through continued growth in established and new European markets, improved marketing steering, and operational efficiency, we remain very confident that we will fulfil our promise of group profitability in FY 2023/2024.”
Highlights of About You’s Q1 performance
The company said in a statement that About You took swift measures to moderate the effect of delays and cancellations on supply at the beginning of the quarter, and to minimise the impact of challenging macroeconomic conditions. Following a shock in demand after Russia’s invasion of Ukraine, trading increased again across Europe throughout the quarter, including in Central and Eastern Europe (CEE).
The company saw growth in active customers from 9.2 million to 11.8 million (27.7 percent year-on-year) and an increase of the average order frequency to 3 (5.4 percent) in the last twelve months, driven primarily by activity in the company’s newer markets. The average order value slightly declined from 58.1 euros to 56.8 euros (2.2 percent) against the backdrop of a normalised returns rate and inflationary pressure. However, the average GMV per customer rose from 162.5 euros to 167.6 euros (3.2 percent).
Driven by continued investments, the company added, adjusted EBITDA amounted to negative 28.8 million euros compared to negative 12.3 million euros in the first quarter of last year and the adjusted EBITDA margin decreased to negative 5.7 percent.
About You’s trading results across core markets
In DACH, About You generated revenues of 239 million euros, up 9.6 percent, driven by increased event-led demand following the ease of Covid-19-related restrictions. The segment sustained its profitability with an adjusted EBITDA of 9.9 million euros and an adjusted EBITDA margin of 4.1 percent.
The company’s RoE segment grew its revenue by 23.3 percent to 229.5 million euros as a result of solid growth in BeNe, the Nordics, and Southern Europe yet adversely affected by the customers’ uncertain purchase behaviour in CEE in the first half of Q1 2022/2023. The positive development in the Nordics and Southern Europe was boosted through large-scale marketing activities, such as the Big Bang event in Norway and a media-driven campaign in Italy. Its adjusted EBITDA deteriorated to negative 46 million euros, which corresponds to an adjusted EBITDA margin of negative 20.1 percent.
The B2B segment, tech, media, and enabling (TME) recorded a 45.2 percent growth to 50 million euros supported by the acquisition of new corporate clients, sale of B2B products with an increased profitability, and international expansion of SCAYLE. Accordingly, the adjusted EBITDA and adjusted EBITDA margin further improved to 7 million euros and 14 percent.
On the back of its strong first-quarter results, About You reiterated its full-year guidance and continues to expect a group revenue of 2,165 to 2,338 million euros, up 25 to 35 percent in FY 2022/2023. The adjusted EBITDA is assumed to remain at negative 70 to negative 50 million euros, equivalent to a margin of negative 3.2 to negative 2.1 percent.