German company About You's revenue up 2.4% in Q2

For six quarters in a row, the About You Group has been reporting substantial increases in EBITDA. In the second quarter, adjusted EBITDA rose significantly by over €10 million (≈$10.94 million) to -€2.3 million (≈-$2.52 million) compared to -€12.9 million (≈-$14.12 million) in the same period last year. Germany experienced particularly strong momentum, with almost double-digit growth rates.

These improvements are the outcome of the strategic and operational measures taken. In the second quarter, optimised inventory levels and a lower discount intensity in the online fashion market led to an increased gross margin of 37.9 per cent. Strict cost discipline and operational efficiency gains reduced administrative expenses by 15.7 per cent to €19.2 million (≈$20.99 million), and in relation to revenue to 4.3 per cent. Marketing costs of €49.8 million (≈$54.46 million) were allocated to targeting and activating both new and existing customers, the company said in a press release.

“With a significantly improved EBITDA and growing revenue, we achieved convincing financial results despite the seasonally weaker second quarter, which usually has lower margins. Our efficiency measures are taking effect, while we continue to make targeted investments in marketing to drive our growth. With success – as our growth rates are above the industry average and the number of active customers is rising again,” said Tarek Müller, the About You Group's co-founder and co-CEO. “Both our performance in the first half of the financial year and the strong start to the fall/winter season confirm our strategy and allow us to raise our earnings outlook for the full year.”

Intensified marketing activities result in the expansion of About You's customer base. The number of active customers in the last twelve months rose from first quarter to second quarter and stood at 12.4 million as of August 31, 2024. During the same period, the average order value increased by 5.6 per cent to €58.8 (≈$64.31), mainly due to the measures taken to increase customer profitability.

Both reporting segments in the commerce business generated revenue growth. In the online fashion stores in Germany, Austria, and Switzerland (DACH segment), revenue rose by 8.6 per cent compared to the second quarter of the previous year, equivalent to €225.1 million (≈$246.19 million). Germany, as the largest market, reported strong growth.

After the quarter ended, the fall/winter season got off to a dynamic start in September. The cold fall weather drove double-digit growth rates, compared to the previous financial year when a mild September delayed sales of the collections.

Fibre2Fashion News Desk (RR)