About You (YOU) Q1 24/25 earnings summary

Executive summary

• Revenue grew 2.2% year-over-year to EUR 518.3 million in Q1 2024/25, driven by improved consumer sentiment, reduced discounting, and effective marketing.

• Adjusted EBITDA rose to EUR 15.0 million (2.9% margin), more than tripling year-over-year, reflecting higher gross margin and operational improvements.

• Gross margin increased by 380 basis points to 43.2%, attributed to better inventory management, lower promotional intensity, and positive mix effects.

• Free cash flow reached EUR 46.0 million, supported by improved EBITDA, reduced inventory, and lower CapEx.

• Strategic investments in marketing and technology, including a major anniversary campaign, drove brand engagement and increased marketing cost ratio by 160 basis points.

Financial highlights

• Adjusted EBITDA margin improved to 2.9% from 0.8% year-over-year.

• Net working capital improved to negative EUR 63 million, mainly from inventory reduction and optimized payables.

• CapEx for Q1 was EUR 13.9 million, mainly for software and infrastructure, down from last year.

• Cash and equivalents at quarter-end were EUR 194.8 million, with an undrawn backup loan facility of EUR 97.5 million.

• Administrative expenses decreased 4.2% to EUR 23.2 million, reducing the cost-to-revenue ratio to 4.5%.

Outlook and guidance

• FY 2024/2025 guidance confirmed: revenue growth of 1%-10% and Adjusted EBITDA of EUR 10-30 million.

• CapEx forecasted at EUR 30-50 million for the year; net working capital to remain negative.

• Double-digit group revenue growth anticipated from FY 2025/2026 onwards.

• Acceleration in growth seen in June, with further improvement expected in coming quarters.

• Guidance is partially dependent on external events' duration, intensity, and outcome.