DGAP-News: ABOUT YOU Holding SE: ABOUT YOU delivers resilient top-line growth and confirms full-year guidance in Q1 2022/2023

Tarek Müller, Co-Founder and Co-CEO of ABOUT YOU, said: ABOUT YOU recorded resilient growth throughout the first quarter of this financial year despite the market climates current volatility thats a huge testament to the strength of our business fundamentals. We are well-positioned to deliver against our strategic initiatives, supported by an expanding customer base. Through continued growth in established and new European markets, improved marketing steering, and operational efficiency, we remain very confident that we will fulfil our promise of Group profitability in FY 2023/2024.

In the first quarter of FY 2022/2023, ABOUT YOU continued to make progress in its strategic objectives, further improving its customer experience and shop assortment, driving its international expansion, and strongly scaling its B2B business. The Group increased its revenue by 19.4% year-on-year to EUR 504.1 million (Q1 2021/2022: EUR 422.1 million) until 31 May 2022 from the year-earlier period, even as Inflation and interest rate hikes impacted customer behaviour. ABOUT YOU took swift measures to moderate the effect of delays and cancellations on supply at the beginning of the quarter, and to minimise the impact of challenging macroeconomic conditions. Following a shock in demand after Russias invasion of Ukraine, trading increased again across Europe throughout the quarter, including in Central and Eastern Europe (CEE).

In its online shop, the Group introduced a Hot Drops section to create an additional release channel for ABOUT YOU and its partner brands in selected countries. As a showcase for exclusive collections, new product releases, and live-shopping events, it generated increased engagement from ABOUT YOUs fashion-oriented and digital-savvy customers this quarter. The first international ABOUT YOU Awards in Milan in May 2022 further drove growth in brand awareness across Europe.

Initiatives implemented have led to a substantial growth in active customers from 9.2 million to 11.8 million (27.7% year-on-year), and an increase of the average order frequency to 3.0 (5.4% year-on-year) in the last twelve months, driven primarily by activity in ABOUT YOUs newer markets. The average order value slightly declined from EUR 58.1 to EUR 56.8 (-2.2% year-on-year) against the backdrop of a normalised returns rate and inflationary pressure. However, as average order frequency increased, the average GMV per customer rose from EUR 162.5 to EUR 167.6 (3.2% year-on-year).

Driven by continued investments, especially in ABOUT YOUs internationalisation, adjusted EBITDA amounted to EUR -28.8 million (Q1 2021/2022: EUR -12.3 million) in the first quarter, and the adjusted EBITDA margin decreased to -5.7% (Q1 2021/2022: -2.9%). The gross margin improved to 42.6% (Q1 2021/2022: 41.8%), but was affected by increased fulfillment and marketing cost-to-revenue ratios.

The Commerce segments, ABOUT YOU DACH and Rest of Europe (RoE), delivered year-on-year growth through a period of economic volatility, reporting a healthy revenue development in Q1 2022/2023. In DACH, ABOUT YOU generated EUR 239.0 million (Q1 2021/2022: EUR 218.2 million) in revenue, corresponding to 9.6% year-on-year growth, driven by increased event-led demand following the ease of Covid-19-related restrictions. The segment sustained its profitability with an adjusted EBITDA of EUR 9.9 million and an adjusted EBITDA margin of 4.1% in (Q1 2021/2022: EUR 17.3 million and 7.9%).

ABOUT YOU RoE grew its revenue by 23.3% year-on-year to EUR 229.5 million (Q1 2021/2022: EUR 186.1 million), a result of solid growth in BeNe, the Nordics, and Southern Europe yet adversely affected by the customers uncertain purchase behaviour in CEE in the first half of Q1 2022/2023. The positive development in the Nordics and Southern Europe was boosted through large-scale marketing activities, such as the Big Bang event in Norway and a media-driven campaign in Italy. Its adjusted EBITDA deteriorated to EUR -46.0 million, which corresponds to an adjusted EBITDA margin of -20.1% (Q1 2021/2022: EUR -33.3 million and -17.9%).

The B2B segment, Tech, Media, and Enabling (TME) performed strongly. The segment recorded a 45.2% year-on-year growth to EUR 50.0 million (Q1 2021/2022: EUR 34.5 million), supported by the acquisition of new corporate clients, sale of B2B products with an increased profitability, and international expansion of SCAYLE, as SCAYLEs sales team has built an effective lead funnel. Accordingly, the adjusted EBITDA and adjusted EBITDA margin further improved to EUR 7.0 million and 14.0% (Q1 2021/2022: EUR 4.7 million and 13.6%).