Jefferies starts About You with 'buy' on its 'unique' online market positioning

ABOUT YOU Holding SE

27/01/2022 11:01

** Jefferies initiates online fashion retailer About You
 YOUG.DE  with "buy", hailing the German firm's "unique
positioning" in a sector marked by increasing online penetration
and changing client behaviour
    ** With the shift towards online and pandemic tailwinds, the
broker expects About You to benefit from its influencer-led
"discovery shopping" platform that offers customers more
personalised, data-driven services
    ** "We expect online penetration to increase from 28% in
2020 to 31% in 2025e within the slightly growing European
fashion market once it has recovered in 2022/23e after the
pandemic," Jefferies says
    ** It sees strong sales development for the company at a
compound annual growth rate of 34% until FY 2025/26, as the
number of customers grows with its regional expansion and higher
online penetration
    ** Jefferies adds About You currently trades on around
30-35% discount to its peers, despite stronger growth profile
and similar margin profile in its more mature markets
    ** About You shares have lost more than 30% of their value
since its listing last June

 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))