About You (YOU) Q1 24/25 earnings summary

Executive summary

• Revenue grew 2.2% year-over-year to €518.3 million in Q1 2024-25, with Adjusted EBITDA more than tripling to €15.0 million, driven by higher average order value, improved 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.

• IFRS/free cash flow rose to €46.0 million, supported by improved EBITDA, reduced inventory, and lower CapEx.

• Net loss narrowed to €9.5 million from €23.8 million year-over-year; EPS improved to -€0.05 from -€0.14.

• Ten-year anniversary campaign increased marketing cost ratio by 160 basis points, boosting brand awareness.

Financial highlights

• Adjusted EBITDA margin improved to 2.9% from 0.8% year-over-year; DACH margin at 3.3%, RoE at -3.3%, TME at 24.5%.

• Net working capital improved to negative €63.0 million, mainly from inventory reduction and optimized payables.

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

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

• Fulfillment cost ratio increased to 24.2% due to one-time automation and logistics costs; marketing cost ratio rose to 11.7%.

Outlook and guidance

• FY 2024-25 guidance confirmed: revenue growth of 1%-10% and Adjusted EBITDA of €10-30 million.

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

• Guidance is subject to risks from external events, including their duration and intensity.

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