Showroomprive.com
Showroomprive.com: FIRST SEMESTER PERFORMANCE AND SECOND SEMESTER OUTLOOK
26-Jun-2019 / 21:29 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
FIRST SEMESTER PERFORMANCE AND SECOND SEMESTER outlook
La Plaine Saint Denis, 26 June 2019 - Showroomprivé, a leading European
online retailer specialising in fashion for the Digital Woman, report on its
performance since the beginning of the year, on the occasion of the
Shareholders' General Meeting to be held tomorrow at 10am on the company's
premises.
The Group announces a deviation in first half financial performance compared
to the "Performance 2018-2020" plan anticipations, which will not allow it
to reach its objective of a profitability more in line with historical
levels in 2019. Showroomprivé expects to post a first half EBITDA loss of
EUR12-15 million before taking into account a punctual impairment, with no
impact on cash, on residual stocks in the order of -EUR10 million, with the
proviso that the Group traditionally generates most of its EBITDA during the
second half due to the seasonal nature of its business (-EUR1 million in H1
2018 versus -EUR6 million profit in H2 2018).
This evolution in first half performance was mainly due to:
· A persistently sluggish market throughout the period, which curtailed
net revenue growth (2.3% decline in Q1);
· A disappointing contribution from SRP Média given the lack of major
advertiser campaigns in H1 2019 compared to the previous year;
· Major logistics cost overruns, primarily related to isolated
disfunctions in the handling of returns, incurred in the interests of
ensuring customer satisfaction. The drop-shipping policy is also having an
inevitable knock-on effect on costs during the ramp-up phase;
· The negative contribution from the exhaustion of residual stocks
(excluding Internet), which conceals the positive gross margin trend in
the core Internet business, due to more selective purchasing policy;
· A punctual impairment on residual stocks in the order of -EUR10 million,
with no impact on cash, to account for this last element (partly due to
the logistics dysfunctions early in the year).
SRP will also recognise non-recurring expenses for the period, particularly
related to restructuring (reduction in workforce of around 10% from 1
January 2019 to date) and the discontinuation of a project that has ceased
to be of strategic value.
Recovery expected in the second half
This first half performance does not question the Performance 2018-2020 plan
strategic axes.
The Group will start the second half of the year on sound and solid basis
and expects to see a recovery compared to the first half, with the objective
to return to profitability in the second half of the year. This recovery
will capitalise on:
· The strong commitment of the base of 9 million customers in a context of
cost optimization;
· Strong positions in the French e-commerce fashion (No. 4) and beauty
(No. 2) markets;
· Persistent long-standing relations with supplier brands, still convinced
by the power of distribution of the brand Showroomprivé;
· The positive gross margin trend in the Internet business, already
discernible in the first half;
· The visible benefits of savings already achieved;
· Streamlined inventories and improved control of logistics costs.
Next release:
2019 first half results: 25 July 2019
FORWARD-LOOKING STATEMENTS
This press release contains only summary information and does not purport to
be comprehensive.
This press release may contain forward-looking information and statements
about the Group and its subsidiaries. These statements include financial
projections and estimates and their underlying assumptions, statements
regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future
performance. Forward-looking statements may be identified by the words
"believe," "expect," "anticipate," "target" or similar expressions. Although
the Group appreciates that the expectations reflected in such
forward-looking statements are reasonable, investors and the Group's
shareholders are cautioned that forward-looking information and statements
are subject to numerous risks and uncertainties, many of which are difficult
to predict and generally beyond the control of the Group, which could cause
actual results and developments to differ materially and adversely from
those expressed in, or implied or projected by, the forward-looking
information and statements. These risks and uncertainties include those
discussed or identified in filings with the Autorite' des Marche's
Financiers made or to be made by the Group (particularly those detailed in
the Group's annual report and in its half year financial report). The Group
undertakes no obligation to publicly update its forward-looking statements,
whether as a result of new information, future events or otherwise.
ABOUT showroomprive.com
Showroomprivé.com is a European player in event-driven online sales that is
innovative and specialized in fashion. Showroomprivé proposes a daily
selection of more than 2,000 partner brands over its mobile applications or
its Internet site in France and in eight other countries. Since its creation
in 2006, the company has undergone quick and profitable growth.
Listed on the Euronext Paris market (code: SRP), Showroomprivé achieved a
gross business volume with all taxes included of more than 900 million euros
in 2018, and net revenue of 672 million euros, growing by 3% over the
preceding year. The Group employs more than 1,150 people.
For more information: www.showroomprivegroup.com [1]
Contacts
Showroomprivé ACTUS finance &
communication
Damien Fornier de Violet, Investor Grégoire Saint Marc,
Relations Investor Relations
investor.relations@showroomprive.net + 33 (0)1 53 67 36 94
showroomprive@actus.fr
Priscilla Le Minter, Communication Alexandra Prisa, Press
Relations
+ 33 1 76 21 50 16 + 33 (0)1 53 67 36 90
priscilla.leminter@showroomprive.net aprisa@actus.fr
Regulatory filing PDF file
Document title: PDF EN
Document: http://n.eqs.com/c/fncls.ssp?u=MUORJDATRO [2]
Language: English
Company: Showroomprive.com
1, rue des Blés - ZAC Montjoie
93210 La Plaine Saint-Denis
France
Internet: showroomprive.com
ISIN: FR0013006558
AMF Category: Inside information / News release on accounts, results
EQS News ID: 831757
End of Announcement EQS News Service
831757 26-Jun-2019 CET/CEST
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=520e5613280760a735ee2b64bd8065d3&application_id=831757&site_id=vwd&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=a38440a2299ebaa496cbd8d71479ddc6&application_id=831757&site_id=vwd&application_name=news
(END) Dow Jones Newswires
June 26, 2019 15:30 ET (19:30 GMT)
