About You experiences 10% sales increase but higher losses in 2022 financial year

About You fattens your losses. The German online fashion distribution company has closed the corresponding financial year in 2022 (ended on February 28, 2023) with a 10% increase in its sales, but fattening its losses.

Specifically, the company’s sales have reached 1,904 million euros, while losses increased to 229 million euroscompared to the red numbers of 124.4 million euros recorded in the previous year.

He pure player maintains its long-term goal of reaching the break even in its adjusted ebitda in the current year, which it describes as a “transition year”, in which the foundations for profitable growth will be laid.

By 2023, the company will maintain its strategy to increase the gross margin, with greater control of the stock that prevents the increase in sales. Besides, a new commission system will be applied for the operators of your marketplace. About You also seeks to increase the cost/revenue ratio in marketing, sourcing and administration.

About You is undergoing a change in strategy, moving from growth to profitability

The company’s ebitda has also increased its negative result, from 95 million euros to 151.6 million euros. For his part, the gross margin has been cut by 2.8 percentage points, down to 40.6%.

However, the company highlights the growth in sales and customers, which increased by 11.8%, to 12.7 million active customers in the period. They have also grown in the number of orders, going from 32.9 million to 39.4 million, 19.7% more.

“Our results for the year reflect the macroeconomic challenges facing the industry,” says the company’s co-founder and co-CEO, Tarek Müller. “We continue to take a focus on capital deployment as our focus shifts from growth to profitability”, adds the manager.

About You has increased its sales in Germany by 9.1%, up to 916 million euros. The market included in the Rest of Europe has grown faster, with a rise in sales of 17.3%, up to 900.4 million euros. The company has highlighted strong growth in the Nordic countries, although it has not broken down the rise in sales in the region.