May 28, 2021
Otto plans to list About You shares as reopening promises boom for e-tailer
May 28, 2021
German retail giant Otto Group is planning to list its About You fashion retail operation on the Frankfurt Stock Exchange as the lockdown easing across Europe mean its occasion and partywear offer should see something of a boom.
But it’s not only about the product offer as the firm’s tech platform also offers a Shopify-style service to third-parties and this is a key growth area at present.
It’s something omnichannel retailers and pureplay e-tailers are increasingly focusing on with other big names such as the UK’s Next and The Hut Group diving deep into this area.
Otto is seeking a valuation of at least €600 million for the business with the listing due to happen during the current quarter. It will include new and existing shares, and an over-allotment option provided by the group, the company said.
About You stands out from the crowd both for its third-party tech offer and for its app personalisation features. Its retail platform competes with big names such as ASOS and Zalando.
And it’s interesting that Anders Holch Povlsen — the fashion mogul behind Bestseller — has a stake in the business as he does in Zalando and ASOS.
Unlike many online purpelays, the pandemic wasn’t much of a boon for About You as its offer is focused on going-out clothes and those were the looks that consumers globally shunned over the past year.
But the company is expecting a pick-up post-Covid, which makes the listing timing particularly good.
And while its partywear wasn’t a pandemic hit, its revenue still rose 57% to €1.17 billion in the year to February, with CAGR of 90%+ since it was founded seven years ago.
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