About You’s double loss is ‘better than expected’
The German fashion platform About you made strong progress during the past financial year: its turnover increased by almost half. the Zalando competitor tries to distinguish itself by targeting young people, but in the meantime continues to make substantial losses.
Twice the loss
About You’s broken 2021/2022 financial year, which ended at the end of February, was again dominated by the Covid pandemic and therefore by strong e-commerce sales. Turnover increased by 48.5% to 1.73 billion euros. In the German-speaking DACH region, the e-commerce player recorded growth of 27.3%, in the rest of Europe growth was even “exceptionally high” at +65.6%.
The fashion market also recorded smaller losses than expected: the operating margin (EBITDA) amounted to “only” 66.9 million euros, twice as much as the 35.5 million euros under zero a year earlier. In the DACH region, the company is already profitable with a profit margin of 6.6%, but the rest of Europe continues to eat away at these margins due to significant marketing investments. This current year, the marketplace expects to lose 50 or even 70 million euros.
Fashion Platform in the Metaverse
About You is now present in 26 European countries. Last year, the fashion platform expanded to southern Europe and Scandinavia, while it also opened a second distribution center in Slovakia. By next year, the company wants to add hubs in Poland and France. The company says it served 34.8% more active customers, bringing the total to 11.4 million.
As the platform primarily targets young people from generations Y to Z, it continues to invest in digital innovations. In September last year, live shopping was introduced, and this year About You is entering the metaverse with the digital fashion platform fashion clothes. At the same time, there will be more physical events, such as the About You Awards at the end of May. In this way, the company expects to achieve a 25 to 35% growth in turnover, despite the difficult market conditions.
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The German fashion platform About You made strong progress last year: its turnover increased by almost half. Zalando’s competitor is trying to distinguish itself by targeting young people, but in the meantime continues to make significant losses.