About You Holding SE (FRA:YOU) Is Expected To Breakeven In The Near Future

About You Holding SE (FRA:YOU) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. About You Holding SE, a fashion and technology company, operates fashion e-commerce platforms in Europe. The €505m market-cap company’s loss lessened since it announced a €112m loss in the full financial year, compared to the latest trailing-twelve-month loss of €98m, as it approaches breakeven. Many investors are wondering about the rate at which About You Holding will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for About You Holding

About You Holding is bordering on breakeven, according to the 9 German Specialty Retail analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of €5.2m in 2027. So, the company is predicted to breakeven approximately 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 81% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving About You Holding's growth isn’t the focus of this broad overview, though, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that About You Holding has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on About You Holding, so if you are interested in understanding the company at a deeper level, take a look at About You Holding's company page on Simply Wall St. We've also compiled a list of key factors you should further research:

1. Valuation: What is About You Holding worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether About You Holding is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on About You Holding’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.