EQS-News: ABOUT YOU Holding SE / Key word(s): Quarter Results
ABOUT YOU Delivers Solid Growth in Q3 2022/2023 despite Continued Market Volatility
ABOUT YOU Holding SE (with its consolidated subsidiaries “ABOUT YOU” or “Group”), one of Europe’s fastest-growing online fashion platforms of scale, today announced continued revenue growth for Q3 2022/2023 (+8.3% year-on-year), proving the strength of its business model in a continuously unfavorable market environment. ABOUT YOU delivered solid growth across all segments while improving its operating leverage in administrative and marketing cost lines. The number of active customers and the number of orders increased by 17.4% to 12.5 million and by 23.8% to 38.2 million respectively in the past twelve months.
Tarek Müller, Co-Founder and Co-CEO of ABOUT YOU: “Although market conditions remain challenging, our active customer base growth and the uptick in average order frequency reflect the high awareness of ABOUT YOU and engagement with our brand. We have continued to build on our core strengths this quarter and our business is well-positioned to generate long-term sustainable growth. Having taken operational measures to improve our stock positions, logistics, and marketing planning, we remain confident of achieving adjusted EBITDA break-even in FY 2023/2024.”
Given the weak consumer sentiment, customers continued to turn increasingly toward discounted items, which contributed to a 6.0% year-on-year decline in average order value from EUR 58.8 to EUR 55.3 in the past twelve months. Against this backdrop, ABOUT YOU increased the average order frequency per active customer by 5.5% year-on-year to 3.0, driven by strategic investments in an expanded product range and an improved customer experience.
ABOUT YOU’s Commerce business reported growth despite weak consumer confidence. The DACH segment grew by 8.2% year-on-year in Q3 2022/2023, with consumer sentiment improving only slightly. Especially in Austria and Switzerland, ABOUT YOU gained considerable market share. Revenue in the Rest of Europe (RoE) segment increased by 11.1% year-on-year, fueled by a strong performance in the Nordics. While revenue development in the Central and Eastern European markets continued to be positive, a decline in consumer sentiment weighed on revenue growth in Southern Europe.
The B2B business, reported in the segment Tech, Media, and Enabling (TME), delivered top-line growth of 9.5% year-on-year, supported by the successful brand positioning of SCAYLE and the onboarding of new enterprise clients. However, the development of existing clients slowed down as they recorded lower online revenues due to the current economic conditions.
To navigate the current market situation and achieve the target of break-even adjusted EBITDA in FY 2023/2024, ABOUT YOU has already initiated decisive measures to improve inventory levels and logistics as well as to adapt marketing planning and hiring. These measures have already shown visible progress in Q3 2022/2023:
ABOUT YOU’s profitability in the quarter was impacted by a decline in its gross margin, due to higher cost of sales as elevated inventory levels across the industry encouraged discount campaigns, and an increase in the fulfillment cost-to-revenue ratio. This was partially offset by continued revenue growth and an improvement in the marketing cost-to-revenue ratio. The increase in the fulfillment cost-to-revenue ratio was driven by a combination of temporary effects, which are expected to remain volatile in the coming quarters, and structural effects, which are expected to persist over the longer term. As a result, adjusted EBITDA amounted to EUR -43.1 million in Q3 2022/2023 (Q3 2021/2022: EUR -30.5 million).
ABOUT YOU confirmed its guidance for the full year. For the Group, revenue growth for FY 2022/2023 is expected to be in the range of +10% to +20% year-on-year, equivalent to EUR 1,905 to 2,078 million. Adjusted EBITDA is expected to decrease to EUR -140 to -120 million3 (margin: -7.3% to -5.8%). Given a more challenging environment than anticipated, ABOUT YOU now expects revenue growth and adjusted EBITDA at the lower end of the guided ranges.
All reporting documents, including ABOUT YOU's Quarterly Statement, are available on the Investor Relations website. The Group plans to publish its full-year results for FY 2022/2023 on May 11, 2023. The publication of ABOUT YOU’s ESG Report is scheduled for May 17, 2023.
Q3 2022/2023 ended on November 30, 2022. Please refer to ABOUT YOU’s Quarterly Statement for definitions.
Sinah Brending | Financial Communications
Investor Relations Contact
Certain statements contained in this release may constitute “forward-looking statements” that involve a number of risks and uncertainties. Forward-looking statements are generally identifiable by the use of the words “may”, “will”, “should”, “plan”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “project”, “goal”, or “target” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are based on assumptions, forecasts, estimates, projections, opinions, or plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change. No representation is made or will be made by ABOUT YOU Holding SE that any forward-looking statement will be achieved or will prove to be correct. The actual future business, financial position, results of operations, and prospects may differ materially from those projected or forecasted in the forward-looking statements. Neither ABOUT YOU Holding SE nor any of their respective affiliates assume any obligation to update, and do not expect to publicly update, or publicly revise any forward-looking statements or other information contained in this release, whether as a result of new information, future events, or otherwise, except as otherwise required by law.
1 LTM: within the past twelve months
2 EBITDA adjusted for (i) equity-settled share-based compensation expenses, (ii) restructuring costs, and (iii) one-time effects
3 Excluding potential M&A activities
10.01.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
ABOUT YOU Holding SE
+49 40 638 569 – 0
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
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