Showroomprive.com: FIRST SEMESTER PERFORMANCE AND SECOND SEMESTER OUTLOOK

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 
 
[e-mail]   + 33 (0)1 53 67 36 94 
 
                                       [e-mail] 
 
Priscilla Le Minter, Communication     Alexandra Prisa, Press 
                                       Relations 
+ 33 1 76 21 50 16                     + 33 (0)1 53 67 36 90 
[e-mail]   [e-mail] 
 
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 
 

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June 26, 2019 15:30 ET (19:30 GMT)