About You focuses on profit after new doubling of losses
About You has plunged deeper into the red. The fiscal year ended with an operating loss of 137 million euros, more than twice the previous fiscal year’s loss, which had already nearly doubled. However, the company refers to these results as “solid performance”. It expects to break even in the current fiscal year.
About You has released figures on its performance in the past fiscal year, which ran until February of this year. The online fashion company experienced a 10 percent growth in revenue under “challenging market conditions”.
About You experienced a 10 percent growth in revenue
About You managed to grow while the online fashion market stagnated, following a surge in growth during the COVID-19 pandemic; in the previous fiscal year, About You’s revenue had increased by almost half, partly due to expansion in Southern Europe and Scandinavia.
Although the revenue growth has slowed down significantly, About You has performed well relative to its industry, according to its management: “About You improved its market position and pushed forward with key operational and strategic priorities in FY 2022/2023, laying the basis for profitable growth.”
About You’s operating losses increased significantly last year. The adjusted EBITDA of -137.0 million euros was 105 percent higher than in the 2021/2022 fiscal year (-66.9 million euros). In the previous fiscal year, 2020-2021, the operating loss was “only” 35.5 million euros. The board believes About You can reverse this trend in the current fiscal year. According to founder Tarek Müller, the German company should be able to achieve operational break-even.
“FY 2023/2024 will be a transition year for About You and set the foundation for profitable growth ahead.”
About You has all the ingredients to achieve this target, according to Muller: “A resilient business model that digitizes the traditional shopping stroll, a strong brand, and an agile team that moves at speed.”
DACH versus rest of Europe
About You has already demonstrated its ability to operate profitably, especially in markets where it has been active for a longer period. In its home market (DACH), About You managed to achieve operational profit in the challenging past year (13.5 million euros). The operation is not yet profitable in the rest of Europe, but the management believes it’s just a matter of time.