Online European fashion platform About You Holding SE upgraded its full-year guidance after the group’s net revenue grew by 51.1 to 55 percent to 390 to 400 million euros in the second quarter.
According to the preliminary figures, for the first half-year, net revenue rose by 58.3 to 60.2 percent to 812.1 to 822.1 million euros.
Commenting on the company’s financial results, Tarek Müller, co-founder and co-CEO of About You said: “Since our listing in June 2021, we have been laser-focused on executing on our strategic priorities to strengthen our core business, invest in our European footprint expansion, and scale our B2B business. Due to the expected strong trading in the first half of the year and a start into autumn/winter season as planned, we are optimistic and raise our full-year net revenue guidance.”
About You posts strong Q2 results
The company said in a statement that the performance was driven by enhanced customer experience, invested in its international expansion in Southern Europe and the Nordics and scaling of its profitable B2B segment Tech, Media and Enabling (TME).
The company added that the About You DACH segment in Germany, Austria, and Switzerland saw increased net revenue growth versus the previous quarter. Additionally, exclusive collections, for instance with fashion icon Kendall Jenner, further drove brand appeal and revenue performance.
On the back of its international expansion, the About You Rest of Europe (RoE) segment continued to generate healthy net revenue growth in the second quarter.
Adjusted EBITDA margin increased to negative 2.8 to negative 4 percent from negative 5 percent one year ago. In the first half of the financial year, the company improved its adjusted EBITDA margin to negative 2.9 to negative 3.4 percent from negative 4.6 percent in H1 2020/2021.
In absolute terms, second quarter adjusted EBITDA amounted to negative 11 to negative 16 million euros compared to negative 12.9 million euros one year ago. In the first half of the financial year, adjusted EBITDA reached negative 23.3 to negative 28.3 million euros from negative 23.6 million euros in H1 2020/2021.
Following the soft launch in Norway in June 2021, the company initiated a teaser phase in Italy in mid-September and in Greece yesterday. About You plans to further ramp up its marketing spending with a particular focus on Southern Europe in the third quarter of 2021/2022.
About You raises outlook on strong Q2 and H1
On the back of its financial performance in the first half-year, progress on strategic priorities and continued strong cohort behaviour, the company said it is raising its net revenue guidance for the financial year 2021/2022. About You is now optimistic to reach 1,725 to 1,775 million euros group net revenue range, an increase of 48 to 52 percent.
The adjusted EBITDA is assumed to remain at negative 70 million euros as the increased revenue is planned to be reinvested in the business.
Previously, the company believed it is realistic to reach the upper half of the guided net revenue range of 1,630 to 1,750 million euros, growth of 40 to 50 percent and an adjusted EBITDA of negative 70 million euros in the full year.
The company further said that the raised outlook aligns About You’s updated group net revenue guidance range with the mean of the analysts’ consensus for the full year of 2021/2022.
Surveyed as of 15 September 2021, the analysts expected full-year group net revenue growth was 50.1 percent, corresponding to the top end of the previously guided range. The mean of adjusted EBITDA margin was negative 3.9 percent for the full year, amounting to negative 68.5 million euros adjusted EBITDA.