With the business potentially at an important milestone, we thought we'd take a closer look at SIGNA Sports United N.V.'s (NYSE:SSU) future prospects. SIGNA Sports United N.V. operates online sports web shops in the European Union, Switzerland, Norway, the United Kingdom, and the United States. The company's loss has recently broadened since it announced a €46m loss in the full financial year, compared to the latest trailing-twelve-month loss of €275m, moving it further away from breakeven. As path to profitability is the topic on SIGNA Sports United's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for SIGNA Sports United

Consensus from 2 of the American Online Retail analysts is that SIGNA Sports United is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of €48m in 2025. Therefore, the company is expected to breakeven roughly 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 75%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving SIGNA Sports United's growth isn't the focus of this broad overview, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there's one aspect worth mentioning. The company has managed its capital prudently, with debt making up 31% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of SIGNA Sports United which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at SIGNA Sports United, take a look at SIGNA Sports United's company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

1. Valuation: What is SIGNA Sports United 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 SIGNA Sports United 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 SIGNA Sports United'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.

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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.