About You surges on Q1 earnings beat

ABOUT YOU Holding SE

12/07/2023 11:03

(Updates share move, adds comments on Zalando, adds Zalando
share move)
    **  Shares in About You Holding  YOUG.DE  surge more than
30%, after the German online fashion retailer reported Q1
earnings above expectations 
    ** The company says it saw significant improvements in Q1
adjusted EBITDA at 4.2 mln euros, and positive free cash flow at
10.8 mln euros, up year on year 114.4% and 144.4% respectively 
    ** "Very strong Q1 EBITDA improvement," Jefferies says,
adding that the result came in much better than expected
    ** Baader Helvea says this means an impressive adjusted
EBITDA swing of +33 mln euros yoy driven by disciplined cost
reductions in marketing and administration
    ** About You's sales growth in the DACH region of +4.1%
outperformed the momentum of its closest competitor Zalando
 ZALG.DE , which reported a +2.2% sales increase in Q1, "which
is remarkable although we know that – in absolute terms – AY's
sales is only around 16% of Zalando's", the broker adds 
    ** About You confirms its guidance to reach adjusted EBITDA
break-even in FY, and continues to expect group revenue growth
in the range of +1% and +11% year-on-year
    ** The stock is seen heading for its best day ever
    ** One trader says Zalando is likely moving up in sympathy
with About You, the stock is up 10%, on track for best day since
October 2022 

 (Reporting by Elizaveta Gladun)
 ((elizaveta.gladun@thomsonreuters.com))