European firm About You's revenue up 1.6% YoY in FY24

Despite excess inventories, unfavourable weather conditions, and declining sector revenue, the About You Group was able to stand strong in the fragmented online fashion market in Europe and to secure a higher market share. With revenue growth of 5.2 per cent year-on-year, the fourth quarter marked a return to solid growth with increases in all three reporting segments.

Revenue generated by the online fashion store in Germany, Austria, and Switzerland (DACH segment) remained almost unchanged from the previous year at €916.7 million (~$986.8 million) and grew by 2.8 per cent to €925.9 million (~$996.7 million) in all other European markets (Rest of Europe segment, RoE).

The group met its full-year guidance for revenue growth and profitability in 2023-24. Despite an uncertain market environment, the About You Group reached the adjusted EBITDA break-even, outperformed the revenue growth of the European online fashion market, and laid a solid foundation for the accelerated, profitable growth expected by the management board in the years ahead, the company said in a press release.

“In FY 2023-24, we entered positive territory in terms of adjusted EBITDA, while at the same time generating growth, being free cash flow positive and gaining significant market share. Following ten years of innovation and investment, this illustrates how a founder-led business model can achieve a good balance between margin expansion and growth,” said Tarek Müller, co-founder and co-CEO of the About You Group. “Be fast, stay hungry, and execute with passion, our core values have remained unchanged for a decade and yet, they have never been more relevant. We are not just waiting for a faster shift from offline to online retail and brighter market conditions. Instead, our team is determined to position About You and Scayle as profitable growth businesses – not only for the current financial year, but for the long term.”

The About You Group significantly improved its margin across all cost lines and segments in FY24. Optimised inventory management compared to the previous year and a lower discount intensity in the online fashion store increased the gross margin to 38.7 per cent from 37.8 per cent in FY 2022-23. At the same time, the About You Group significantly lowered its costs in relation to revenue. It reduced its fulfilment costs by 150 basis points to 23.0 per cent, marketing costs by 500 basis points to 10.9 per cent, and administrative expenses by 10 basis points to 4.6 per cent relative to revenue.

As a result of the efficiency gains, adjusted EBITDA amounted to €3.2 million (~$3.4 million) corresponding to a triple-digit surge of €140.2 million (~$150.9 million) compared to the prior year. The adjusted EBITDA margin equalled 0.2 per cent.

In FY25, the About You Group plans to continue its strategic initiatives, including the use of artificial intelligence in the online fashion store to further personalise the digital shopping experience for its young and fashion-conscious Gen Y&Z customers. An example is the new AI-based shopping assistant Maya. Launched in April 2024, Maya assists many users of the About You app in Germany, Austria, and Switzerland by providing personalised shopping guidance and inspiration.

Fibre2Fashion News Desk (RR)