German online fashion retailer About You achieved its first-ever profit, reporting a € 3.2 million net income for their fiscal year ending February 2024. This marks a significant milestone for the company founded in 2014. Despite stable revenue of €1.9 billion (a minor 1.6 per cent increase), About You managed to turn a profit. This highlights the success of their growth strategy, balancing margins and customer acquisition, according to co-CEO and co-founder Tarek Müller.
“Following 10 years of innovation and investment, this illustrates how a founder-led business model can achieve a good balance between margin expansion and growth,” said co-CEO and co-founder Tarek Müller. “We are not just waiting for a faster shift from offline to online retail and brighter market conditions. Instead, our team is determined to position About You and Scayle as profitable growth businesses – not only for the current financial year, but for the long term,” he added.
Despite a challenging year in 2022-23, About You rebounded in 2023-24. The company boasted 12.3 million active customers who placed a healthy 37.8 million orders. While order frequency remained steady at 3.1 per customer, the average order value grew a promising 5.8 per cent to € 58.
Revenue breakdown reveals stability in their core DACH region (€ 916.7 million), with modest growth (2.8 per cent) in the rest of Europe (€ 925.9 million). Their B2B unit (TME segment) saw a slight dip in revenue (€ 188.9 million).
In a strategic move, About You spun off Scayle, their subsidiary specialising in e-commerce solutions, in August 2023. Already serving 200 e-tailers and generating a significant € 3.8 billion in external transaction volume, Scayle has its sights set on North American expansion. With a presence in roughly 100 markets and tailored offerings in 28 European countries, About You is optimistic about the future. They forecast a growth rate of 1 per cent to 10 per cent for fiscal year 2024-25, with a significant jump in EBITDA expected (from € 10 million to € 30 million).
