German About You sees its share take off thanks to improved annual outlook
German online fashion retailer About You YOUG.DE on Tuesday raised its full-year sales outlook, citing strong revenue growth in the second quarter. Amid the news, the retailer’s shares outperformed the national benchmark – DAX – as well as strong players such as Puma and Adidas.
It should be remembered that the retailer went public in June of this year and was added to the German small cap index .SDAXI this month.
About You saw sales growth of up to 55% in the second quarter and now expects to reach a full-year sales growth range of 48% to 52%.
About You competes with Zalando ZALG.DE in the consumer segment, while its B2B platform is seen as competing with Shopify SHOP.TO, SAP SAPG.DE and Salesforce CRM.N.
About You outperforms German DAX stocks including Adidas and Puma
As one German trader pointed out, the increased annual sales target for About You attracted investors to the online fashion retailer’s shares, increasing the stock by more than 2.5%. The fact that second quarter key data was also better than expected, contributed to the strong performance of the e-trader’s shares on the trading floor on Tuesday.
Also in Germany, manufacturers of sporting goods and stocks of sporting equipment were among the losers, with Adidas and Puma recording minus 1.7 and 1.5% respectively. They have been negatively affected by growing concerns about rising inflation around the world.
Expansion in Spain and Finland accelerates
Retailer CEO Tarek Mueller told Reuters the group plans to step up marketing activities in several European countries – from Spain to Finland – ahead of the Christmas season. “Since our listing in June 2021, we have focused on executing our strategic priorities to strengthen our core business, invest in expanding our European footprint and growing our B2B business,” Mueller said in a statement. ‘business.
“Right now is the right time to grow,” he said. “People want to shop online. He said that with technology and a high level of automation, the group could expand into many markets at the same time.
According to the CEO of the company, “The successful ‘big bang’ launch campaign in Italy underscores the strength of our go-to-market strategy, which we continue to implement in our third quarter. Due to the strong activity expected in the first half of the year and the start of the fall / winter season as expected, we are optimistic and are raising our net sales forecast for the full year. “
Influencer engagement and limited promotions boosted About You sales in Q2
Lesser COVID-19 restrictions have made it easier for fashion shoppers to return to the store in Germany, Austria and Switzerland. About You stores in this region recorded an increase in net sales compared to the previous quarter. Growth was also supported by accelerating marketing spend thanks to attractive paybacks after customer acquisition, the retailer explained.
Collaborations with influencers such as Kendall Jenner (“Kendall for ABOUT YOU”) further increased brand appeal and revenue performance, as the company pointed out.
On the strength of its international expansion, performance in other European markets with the presence of the fashion brand continued to generate solid net sales growth in the second quarter. According to the company’s financial update on Tuesday, all of its Commerce segments, ABOUT YOU DACH and RoE, got off to a good start in the fall / winter season in the third quarter of the fiscal year, as expected.
Image: About you official website