📈 Strong Profit Growth
About You, the online fashion retailer, surprised with unexpectedly high profitability in Q1 2024/25. The quarter, which ended in May, saw adjusted EBITDA triple to $15M from $4.2M the previous year. Co-CEO Tarek Müller said, "We are pleased that we have strengthened our margins and liquidity through efficiency gains and cost control on our tenth anniversary."
💵 Modest Sales Increase
Sales increased by 2.2% to $518.3M compared to the same period last year. This modest growth in sales was accompanied by a significant improvement in the profit margin, which rose to 2.9% from 0.8%. This indicates that About You has been able to manage its costs effectively while maintaining steady sales.
📊 Future Projections
Management is optimistic about the rest of the financial year, projecting sales growth between 1% and 10%, and adjusted EBITDA between $10M and $30M. They expect the growth dynamic to accelerate beyond the current financial year, suggesting a positive outlook for the future.
🎉 Celebrating Milestones
This profitability boost comes as About You celebrates its tenth anniversary. The company's strategic focus on efficiency and cost control has paid off, positioning it strongly in the competitive online fashion market. As Müller highlighted, these efforts have significantly strengthened the company’s margins and liquidity.
Do you think About You can maintain this profitability?
