DGAP-News: ABOUT YOU Holding SE / Key word(s): Change in Forecast
ABOUT YOU Holding SE (with its consolidated subsidiaries “ABOUT YOU” or “Group”), one of Europe’s fastest-growing online fashion platforms of scale, today adjusted its guidance for FY 2022/2023. Declining consumer sentiment and a deterioration in macroeconomic factors have a stronger and more prolonged adverse impact on top- and bottom-line developments than was foreseeable at the time of publication of the full-year guidance.
Hannes Wiese, Co-Founder and Co-CEO of ABOUT YOU, says: "The current situation is challenging and requires decisive measures. We expected a stabilisation of the macro-environment and a business recovery from the second quarter onwards. Our inventories and cost structures were planned accordingly, which puts a strain on profitability now that revenue growth is lower than expected. For this reason, we will continue to increase our focus on cost control and operational efficiency without compromising on key growth investments. Reaching adjusted EBITDA break-even for the Group remains our top priority for FY 2023/2024 and we reiterate our forecast to achieve this, despite current challenges."
For the second quarter of FY 2022/2023, the Management Board expects an increase in revenue of +4.9% to +12.5% year-on-year (EUR 415 to 445 million) and an adjusted EBITDA of EUR -55 to -40 million. This corresponds to an adjusted EBITDA margin of -13.3% to -9.0%. The expected improvement in revenue growth compared to Q1 2022/2023 did not materialise. In fact, revenue growth has moderately slowed down in the course of Q2 2022/2023. As a result, the revenue is below the Management Board's previous expectation. Led by the tense market environment, management now expects revenue growth in the second half of the fiscal year to be broadly in line with H1 2022/2023, despite a lower comparison base from H2 2021/2022. For the second half of the financial year, a slight improvement in adjusted EBITDA and the adjusted EBITDA margin is expected compared to H1 2022/2023. This is mainly driven by a structurally higher profitability in the autumn/winter season, driven by higher-ticket items. The bottom-line however remains under pressure due to the revised revenue expectation and surging cost inflation. The Management Board takes the currently challenging market environment very seriously and is therefore intensifying existing cost control measures without refraining from important investments in future growth.
Tarek Müller, Co-Founder and Co-CEO of ABOUT YOU, says: "In this challenging market environment, ABOUT YOU has continued to gain significant market share and will also continue to grow significantly faster than the market in the long term. Currently, the cost structure is being adjusted to the market conditions. We continue to expect our Group to break-even on adjusted EBITDA level in the next financial year. ABOUT YOU is uniquely positioned and I am convinced that we will generate long-term value for our shareholders with our inspiring and personalised business model. Based on this belief, I already increased my stake in ABOUT YOU in July."
The half-year financial report for the financial year 2022/2023 will be published on ABOUT YOU’s Investor Relations website on 11 October 2022.
Sinah Brending | Financial Communications
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 forecast 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.
13.09.2022 CET/CEST Dissemination of a Corporate News, transmitted by DGAP - 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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