European firm About You's revenue grows 2.1% to €439.6 mn in Q2 FY24

10 Oct '23

3 min read

Pic: About You

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About You Group, a leading online fashion retailer in Europe, saw a 2.1 per cent YoY revenue rise to €439.6 million in Q2 FY24, highlighting a significant shift towards profitability.
Despite subdued consumer sentiment in Germany, the firm registered growth.
The company also reported an uptick in active customers and order frequencies in Q4 FY24.

Europe-based About You Group, a leading online fashion store, has reported a revenue growth of 2.1 per cent YoY, reaching €439.6 million for the second quarter of fiscal 2024 (Q2 FY24). A shift towards profitability yielded a notable increase in the adjusted EBITDA, with a figure of minus €12.9 million in Q2 FY24, in stark contrast to the minus €42.8 million from the previous year. This translates to an adjusted EBITDA margin improvement to minus 2.9 per cent, a significant enhancement from the minus 9.9 per cent recorded in the preceding year.

The company's fulfilment costs plummeted by 14.7 per cent to €104.5 million in Q2 FY24, and marketing costs saw a sharp reduction by 41.8 per cent, amounting to €39.7 million for the quarter. As a result, the cost-to-revenue ratios experienced a significant yearly decline, registering at 23.8 per cent and 9 per cent respectively.

Within the About You Group, the two reporting segments of the commerce business saw a marginal revenue uptick. Despite dampened consumer enthusiasm in Germany, the Dach segment reported a 0.3 per cent revenue growth, amounting to €207.3 million. This growth is attributed to stronger performances in Austria and Switzerland, offsetting Germany's weaker results. The Dach segment's adjusted EBITDA stood at €3.9 million, with its margin improving to 1.9 per cent, the company said in a press release.

Meanwhile, the rest of Europe (RoE) segment bounced back from its first-quarter performance, registering a 1.3 per cent growth in revenue, reaching €212.1 million. This segment witnessed varied growth rates, influenced by diverse country-specific factors, such as inflation and cost-cutting initiatives. The adjusted EBITDA for this segment improved to minus €22.4 million, with the margin at minus 10.6 per cent.

There was consistent growth in About You's customer base and order numbers. By the end of August 2023, the online fashion store reported 12.6 million active customers, who placed a cumulative of 39.1 million orders over the past year. Customers showcased enhanced loyalty, with an average order frequency of 3.1, marking an increase from the previous year. Additionally, the average order value observed a slight bump, growing by 0.1 per cent to €55.6, credited to higher selling prices.

“Our goal is and remains sustainable profitability. The improvement in our cost structures is both gratifying and necessary to reach break-even at the level of adjusted EBITDA in the current financial year,” said Tarek Muller, co-founder and co-CEO of the About You Group. “We have driven our revenue growth and seen increasing customer and order numbers, despite challenging consumer sentiment. Once the market recovers, we will consistently leverage the potential of our business model to further accelerate revenue growth and deliver sustained profitability.”

Fibre2Fashion News Desk (DP)

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