-
Revenue Growth: 3.4% year-on-year increase.
-
Adjusted EBITDA: EUR 28.1 million.
-
Gross Margin: Increased by 170 basis points to 40.4%.
-
Free Cash Flow: Positive EUR 55.5 million.
-
Cash Balance: EUR 154.5 million at the end of FY24-'25.
-
SCAYLE Revenue Growth: 11.5% increase.
-
SCAYLE Adjusted EBITDA Margin: 47%.
-
Group Revenue Q4: Increased by 8.7% to EUR 474 million.
-
Active Customers: Increased by 4.8% to 12.9 million.
-
Average Order Value: Increased by 3.6% to EUR 60.1.
-
Net Working Capital: Negative EUR 109 million at the end of Q4 '24-'25.
-
Operating Cash Flow: Positive EUR 100.2 million in FY24-'25.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
-
ABOUT YOU Holding SE achieved a top-down growth of 3.4% year on year and improved profitability with an adjusted EBITDA of EUR28.1 million.
-
The company saw a record increase in LTM active customers by 4.8% to 12.9 million, driven by improved retention and new customer acquisition.
-
SCAYLE delivered a successful year with revenue growth of 11.5% and a strong ARR growth of 23%, maintaining a healthy adjusted EBITDA margin of 47%.
-
The group gross margin increased by 170 basis points to 40.4%, driven by high-margin tech revenues and improved inventory positions.
-
ABOUT YOU generated a positive IFRS free cash flow of EUR55.5 million, resulting in a solid cash balance of EUR154.5 million at the end of FY24-'25.
-
The average order frequency per active customer declined by 3.4% to 3.0 transactions over the last 12 months.
-
The group adjusted EBITDA margin was negative 1% in Q4 '24-'25, despite improvements in profitability.
-
The gross margin declined by 170 basis points to 37.6% in Q4 due to revenue mix and comp effects.
-
The company is facing uncertainties due to the upcoming Zalando transaction, impacting revenue growth guidance.
-
Commerce operating profit remains in negative territory, with expectations for positive adjusted EBITDA in the near term.
Q: You've previously pointed towards double-digit growth expectations for FY25-'26. Now you're suggesting moderate growth. What has changed since you last reported? A: We are not seeing major changes in consumer sentiment, which remains relatively stable. The guidance for moderate revenue growth in FY25-'26 considers two factors: the expected faster GMV growth due to the marketplace model rollout and uncertainties related to the Zalando transaction, which affects business steering.
Q: Have you observed any changes in cost per clicks, particularly with Chinese competitors spending more on advertising in Europe? A: We have not seen changes in cost per clicks compared to previous quarters. Despite discussions about increased aggressiveness from Asian players, online marketing behavior remains stable.
Q: Can you provide insights into the SCAYLE pipeline and whether US macro concerns are affecting potential partners' decision-making? A: The SCAYLE pipeline is developing healthily, in line with expectations. While geopolitical tensions are acknowledged, they currently do not negatively impact the SCAYLE pipeline or operating business.
Q: How is ABOUT YOU's market share growth compared to competitors, and which players are you taking share from? A: In core markets, ABOUT YOU is growing slightly above market average, taking share from multi-channel retailers and smaller players. The company expects to continue outgrowing the market through strategic initiatives.
Q: What is the status of your distribution network, and what are the potential benefits of moving inventory to Zalando warehouses? A: Most distribution center contracts have a term of around five years, with many capitalized in '22 and '23. Future decisions on inventory movement to Zalando warehouses will depend on synergy discussions with Zalando.
Q: When do you expect the commerce business to achieve positive operating profit? A: ABOUT YOU anticipates strong increases in adjusted EBITDA for commerce, expecting to reach a positive adjusted EBITDA in the near term. Future segment reporting will include adjacent B2B revenue streams, enhancing reported commerce adjusted EBITDA.
Q: Have Asian competitors increased activity in Europe following tariff announcements? A: There have been no significant changes in the behavior of Asian competitors in Europe. Online marketing aggressiveness and pricing remain stable.
Q: What is driving growth in the rest of Europe, and how do you expect these markets to perform in the coming year? A: Growth in the rest of Europe is driven by reduced commitment in certain markets and improvements in large markets like CEE. Stable consumer sentiment and a stabilizing competitive environment contribute to positive future expectations.
Q: Can you provide examples of non-fashion categories in the SCAYLE business, and is there still demand from fashion players? A: SCAYLE has acquired partners in food retailing, opticians, and car equipment, among others. Fashion remains a focus and sweet spot for SCAYLE, with continued demand expected, especially with the upcoming team-up with Zalando.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
