About You grows 50 percent despite losses
About You, the German fashion retailer, has released its second quarter results. The company shows a year-on-year growth of over 50 percent. This is mainly thanks to their B2B services, as their fashion branch suffers millions in loss.
About You is the daughter of online shopping brand Collin and in the hands of giant ecommerce-brand Otto Group. The company went public earlier this year. Only recently About You announced their expansion to Southern European markets like Italy, Greece and Portugal.
More than 50 percent growth
The German company made a revenue of 395.6 million euros, which means a year-on-year growth of over 50 percent in the second quarter. For the first half of the year, revenue rose by almost 60 percent to 817 million euros.
About You grew with over 50 percent in the second quarter.
This increase by half is in stark contrast with an adjusted earnings before interest (EBITDA) of over 13 million euros in loss. Although this is similar to the red numbers last year (12,9 million euros), the gap widens when looking at About You’s individual branches.
Over 20 million loss in residual European markets
When looking at the fashion segment, retail in the main DACH-region (including home country Germany, Austria and Switzerland) still made a gross profit of 7.8 million euros. In the year before this was a more fruitful 8.6 million euros.
The remaining European markets experienced a loss of over 24 million euros.
The remaining European markets, however, experienced a loss of over 24 million euros. That is almost 7 million euros more than the year before. The recent expansions into Southern Europe, therefore, seem to leave its mark on the company’s results.
B2B grows with 181 percent
The fashion retail losses are offset by About You’s successful B2B branch, which offers other online retailers cloud services and distribution centers under the name TME. The department grew with a whopping 181 percent to 39.5 million euros profit in the second quarter. The revenue is more modest and lands at around 6 million euros. It seems that About You’s profits mostly rely on their B2B branch.
Expected annual revenue of 1.7 million euros
For the full year, About You expects a revenue of around 1.7 million euros and adjusted earnings of 70 million euros in loss. The increased revenue is planned to be invested in the business, according to their press release.
Co-CEO Tarek Müller says: “As we prepared to meet peak demand in the autumn/winter season 2021/2022, which has started off as planned, we are confident to reach our recently upgraded revenue guidance for the full year.”