FRANKFURT (dpa-AFX) - Unexpected profitability in the first fiscal quarter put About You investors in a celebratory mood on Wednesday. The papers of the online fashion retailer jumped by a quarter in early Xetra trading. The price broke through a number of chart indicator lines, last but not least also the 200-day line as a signpost for the long-term trend.

The company said it achieved positive adjusted operating profit (Ebitda) in the first quarter of the current fiscal year (ended February). According to a trader, although the past quarter of the year was a difficult one, About You was able to reduce operating costs. The adjusting screw, he said, was primarily marketing expenses. As a result, the operating break-even point had been reached - this probably enjoyed priority.

Baader Bank analyst Volker Bosse referred to the company's statement that the break-even point had been reached faster than expected. He described the sales development as in line with expectations, while the operating result had clearly exceeded the assumptions. It is also worth noting that growth in the German-speaking countries was higher than that of the disproportionately larger competitor Zalando, at around four percent. The latter's shares also rose by almost five percent on Wednesday.

Instead of an operating loss of more than 16 million euros, as expected by analysts, the online fashion retailer posted a profit of a good 4 million euros, Goldman Sachs analyst Richard Edwards said in an initial reaction, explaining the positive surprise in more detail. He, too, pointed to significantly lower expenses for marketing and administration as the main reason. Henrik Paganetty of Jefferies also pointed to positive free cash flow as good news.

The jump in the share price on Wednesday means that the papers are heading for the biggest daily gain in the two-year history of the Borsen. A one-quarter increase is extraordinary even for a usually volatile stock like About You. However, the price jump is ultimately not more than a spirited recovery: Since the record of just under 27 euros reached early in 2021, the price had slumped by 84 percent in the low. The previous low of 4.27 euros dates back to May./tih/bek/ngu