Germany's About You starts FY25–26 strong with $637.3 mn Q1 revenue

The active customers rose for the group by 8.4 per cent YoY to 13.3 million, and gross profit climbed by 3.6 per cent to €232 million. However, the gross margin declined by 100 basis points to 42.2 per cent due to promotional activity and one-off effects.

The profitability improved significantly, with EBITDA growing by 79.1 per cent to €16.3 million, and the EBITDA margin rising to 3 per cent from 1.8 per cent. Adjusted EBITDA increased by 53.9 per cent to €23.2 million, with the margin improving to 4.2 per cent from 2.9 per cent, reflecting enhanced operational efficiency and strict cost control.

The capital expenditure (capex) declined by 48.4 per cent to €7.2 million, indicating lower investment outflows. Free cash flow stood at €26.1 million, down 43.2 per cent YoY due to working capital timing effects. Cash and cash equivalents were €160.8 million at the end of the quarter, down from €194.8 million the previous year. Net working capital improved significantly to -€123.3 million from -€63.0 million, driven by inventory optimisation and working capital measures.

Both the consumer-facing About You platform and its B2B segment, Scayle, contributed to growth. Scayle continued to invest in international expansion and now serves over 300 brands through its commerce technology and SCAYLE Payments, which recently received BaFin licensing and is expanding across Europe, added the release.

Based on Q1 performance and a strong start to Q2, the management board reaffirmed its guidance for FY25–26, expecting moderate revenue growth and strong growth in adjusted EBITDA. Meanwhile, About You’s acquisition by Zalando SE is progressing. With European Commission clearance secured, the takeover offer was settled on July 11, 2025, and Zalando plans to initiate a squeeze-out of the remaining minority shareholders.

ALCHEMPro News Desk (SG)