Answear.com (ANR) Q2 2024 earnings summary

Executive summary

• Achieved 13.6% revenue growth in H1 2024 to PLN 632 million, outpacing competitors despite macroeconomic challenges and increased investments.

• Continued strategic transition into the premium segment, opening new concept stores and acquiring exclusive brands.

• EBITDA dropped sharply to -PLN 6.8 million, mainly due to high marketing costs and PRM brand development.

• Net loss was PLN 21.9 million versus a net profit of PLN 15.0 million in H1 2023; PRM contributed a net loss of PLN 8.9 million.

• Active customers grew 12% to 2.1 million, with 2.6 million orders placed (+6.4% y/y) and average order value up 7.7% to PLN 362.

Financial highlights

• H1 2024 revenue reached PLN 632 million, up 13.6% year-over-year; in fixed currencies, revenue would be PLN 683 million.

• Gross margin was 40.0% in H1 2024, down from 41.9%/42.0% in H1 2023, mainly due to currency effects and lower margins in Ukraine.

• EBITDA margin declined to -1.1% (vs. 5.6% in H1 2023), impacted by high marketing costs and PRM investments.

• Marketing costs rose 53–54% year-over-year to PLN 128.1–141 million, representing 22.6% of online sales.

• Cash and equivalents fell 91.4% to PLN 7.5 million, reflecting increased inventory and investment outflows.

Outlook and guidance

• H2 2024 expected to benefit from improved consumer sentiment and continued investment in PRM and premium repositioning.

• PRM segment aims to achieve economies of scale and break-even by year-end 2024.

• Management expects continued growth in premium and mid-tier segments, leveraging expanded product range and new brands.

• Focus remains on international expansion, premiumization, and operational synergies from PRM acquisition.

• Further expansion of product offerings and execution of major marketing campaigns planned.