ABOUT YOU Profit Outlook of Holding AG (FRA: YOU)

ABOUT YOU Holding AG (ENG: YOU) Perhaps a major achievement in his business is approaching, so we would like to shed some light on the business. ABOUT YOU Holding AG, a fashion and technology company, operates fashion and lifestyle e-commerce platforms in Europe. With the latest loss of 151 million euros for the year and a year-over-year loss of 180 million euros, the market-cap company of 3.6 billion euros amplified its loss by moving further away from its goal of balance. Since the path to profitability is the topic of concern for investors at ABOUT YOU Holding, we decided to assess market sentiment. Below, we’ll provide a high-level summary of industry analyst expectations for the company.

See our latest review for ABOUT YOU Holding

ABOUT YOU Holding is close to breaking even, according to Germany’s 8 e-commerce analysts. They expect the company to make a terminal loss in 2023, before making a profit of 4.6 million euros in 2024. Therefore, the company is expected to break even in about 3 years. In order to meet this balance date, we have calculated the rate at which the company must grow from one year to the next. It turns out that an average annual growth rate of 70% is expected, which is extremely sustained. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.

DB: YOU Growth in earnings per share at December 30, 2021

Underlying Developments Behind ABOUT YOU Holding’s growth is not the subject of this overview, but be aware that a high expected growth rate is generally not unusual for a company. company that is currently going through a period of investment.

One thing we would like to point out is that ABOUT YOU Holding has no debt on its balance sheet, which is quite unusual for a growing business that burns cash, which typically has high debt relative to its equity. . The company currently operates solely on funding from its shareholders and has no debt, reducing concerns about repayments and making it a less risky investment.

Next steps:

This article is not intended to be a full analysis on ABOUT YOU Holding, so if you want to understand the business on a deeper level, take a look at the ABOUT YOU Holding company page on Simply Wall St. We. have also compiled a list of important factors that you should take a closer look at:

  1. Evaluation: What is ABOUT YOU Holding worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize whether ABOUT YOU Holding is currently poorly valued by the market.
  2. Management team: An experienced management team at the helm increases our confidence in the company – take a look at the board members of ABOUT YOU Holding and the background of the CEO.
  3. Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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