Showroomprive.com
Showroomprive.com: Net REVENUES: EUR427M - Controlled business contraction
against a backdrop of overall optimisation
24-Oct-2019 / 17:47 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
2019 NINE-MONTH BUSINESS REVIEW
Net REVENUES: EUR427M
CONTROLLED business CONTRACTION AGAINST A BACKDROP OF OVERALL OPTIMISATION
La Plaine Saint Denis, 24 October 2019 - Showroomprivé, a leading European
online retailer specialising in fashion for the Digital Woman, has published
its revenues for the first nine months of 2019 ended 30 September.
9-month net revenues of EUR427 million, down 5.6% versus 2018
(down 4.9% like-for-like at constant perimeter).
The decline was accentuated in the 3rd quarter (down 8.6%; down
7.8% like-for-like), traditionally the weakest period of the
year, due mainly to Internal effects related to strategy:
· Increased offering selectivity and discontinuation of low
margin sales;
· Significant reduction in marketing investment;
· Gradual model shift from firm to conditional purchases.
As always, the fourth quarter, the most profitable period of the
year (13th anniversary of Showroomprivé, Black Friday, Christmas
season), will be crucial to the Group's EBITDA performance.
Showroomprivé continues to implement measures under the
"Performance 2018-2020" plan.
· Strict control of operating expenses and streamlining of
support services.
· Rundown and optimisation of inventory management
(significant decline in firm purchases, increase in drop
shipping).
· Progressive streamlining of supply chains.
· Creation of a commercial prospecting unit aimed at renewing
the brand offering.
Showroomprivé obtained the Customer Service of the Year 2020
award in recognition of its strategy of always placing the
customer at the forefront of its priorities [1].
Showroomprivé co-founders and co-CEOs Thierry Petit and David Dayan
commented on these results: "The decline in revenues since the beginning of
the year, particularly in the third quarter mainly due to the strategic
decisions we have made. In addition to closures made in certain countries,
we have decided to rationalise our offering and discontinue sales that are
not sufficiently profitable. To compensate, we are reinforcing our portfolio
of premium brands to provide an ever more attractive and diversified
offering. Controlling costs and restoring profitability in the short term
clearly remain our priorities. We are therefore continuing to focus on
successful implementation of our plans to optimise processes. Showroomprivé
is currently at a pivotal point in its history. We still have a few quarters
of intense work ahead, but we should begin to gradually reap the benefits of
these measures over the next few quarters."
Q3 2019 HIGHLIGHTS
Q3 2018 Q3 2019 % Variation
Net revenues (in 136.7 125.0 -8.6%
millions)*
Total Internet revenues 134.2 122.0 -9.1%
(in millions)*
buyers (in millions)** 1.4 1.2 -11.3%
Revenue per buyer (EUR) 88.7 90.5 +2.0%
Number of orders (in 3.2 2.8 -14.2%
millions)
Average Number of 2.3 2.2 -3.3%
orders**
Average Basket size 38.3 40.4 +5.5%
(EUR)**
9 months 2018 9 months 2019 % Variation
Net revenues (in 452.2 427.0 -5.6%
millions)*
Total Internet revenues 441.2 419.9 -4.8%
(in millions)*
buyers (in millions)** 2.8 2.6 -6.3%
Revenue per buyer (EUR) 147.3 147.6 +0.2%
Number of orders (in 10.2 9.5 -7.3%
millions)
Average Number of 3.7 3.6 -1.1%
orders**
Average Basket size 40.2 40.7 +1.3%
(EUR)**
31/12/2018 30/09/2019 Variation
Cumulative buyers*** (in 9.0 9.5 +0.5
millions)
* IFRS
** Excluding
Beauteprivee
*** "Cumulative buyers" are all buyers who made at least one
purchase on the Group's platform since it was launched
Revenue analysis
Group net revenues fell 8.6% to EUR125.0 million in the third quarter of
2019, down 7.8% after adjusting for the closure of operations in certain
countries announced in 2018 (Germany, Poland and the multi-currency
website). The third quarter is historically the weakest period of the year
(20% of revenues in 2017 and 2018).
Total Internet revenues, which represent the Group's core business (98% of
total revenues) posted a decline of 9.1% (down 8.3% excluding the impact of
the aforementioned closures).
The volume of the offering decreased due to the policy of increased
selectivity leading to the discontinuation of low margin sales such as in
the high-tech segment. This had an inevitable knock-on effect on the number
of orders. In addition, the reduction in marketing investment geared towards
acquiring new customers has impacted the number of new buyers. Nevertheless,
existing customers strengthened their commitment to Showroomprivé during the
quarter, with revenue per buyer up 2% to over EUR90 in the third quarter,
testifying to the resilience of the brand and the power of the online sales
platform.
Nine-month revenues amounted to EUR427.0 million, down 5.6% year-on-year and
down 4.8% excluding the impact of the aforementioned closures. 9-month
Internet revenues totalled EUR419.9 million, down 4.8% (down 4.1% excluding
geographical impact).
Loyal buyers generated 87% of revenues over the first 9 months of the year,
up 3 percentage points year-on-year. This trend gathered momentum in the
third quarter with loyal buyers generating 90% of revenues, in line with the
strategy aimed at reducing expenditure on acquiring new customers while
boosting earnings from the loyal buyer base. Notwithstanding, the
attractiveness of the brand continues to win over new customers, with more
than 500,000 new buyers since the start of the year bringing the total
number of buyers to 9.5 million.
Progress with the "2018-2020 performance" plan
During the 3rd quarter, management continued to focus on implementing
measures under the "Performance 2018-2020" plan. In order to return to
profitability in the short term by tightly controlling operating expenses
whilst optimising marketing investment, the company has made headway with
streamlining support services and has stepped up its policy of reducing firm
purchases.
The strategy to improve the Group continued in the following areas:
· The progressive shift in its purchasing model in order to reduce
inventory risks. Accordingly, the firm purchase percentage of revenues
fell 5 percentage points to 21% of 9 months 2019 gross Internet revenue.
During this transitional period, the Group managed to sustain the
attractiveness of its brand. In this context, a commercial prospecting
unit was set up to recruit new brands in order to continue to offer
customers an attractive and distinctive product portfolio;
· Dropshipping (direct delivery from vendor), which simplifies logistics
management, continued to gain popularity and represented 12% of 9-month
revenues, up 4 percentage points year-on-year. Growth of these sales
accelerated in the third quarter to reach 15% of Q3 gross Internet
revenues;
· The streamline supply chain (one of the Group's largest projects over
the next 18 months), a first milestone will be reached in the fourth
quarter with the opening of the new high-performance mechanised logistics
warehouse.
The Group is fully focused on achieving a successful fourth quarter, the
most significant period of the year (13th anniversary, Black Friday,
Christmas season) and crucial for the aimed return to profitability in the
second half, which will not, however, compensate for the delay taken in the
first semester.
Furthermore; in recognition of its commitment to quality of service and
making the customer its number one priority. Showroomprivé has just been
voted Best Customer Service 2020 by Viséo Customer Insights, which
acknowledges the Group's commitment to providing a premium retail experience
and the relevance of its value proposition.
Next releases
FY 2019 results, mid-March 2020
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 six 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: https://www.showroomprivegroup.com [1]
Contacts
Showroomprivé ACTUS finance &
communication
Damien Fornier de Violet, Relations Grégoire Saint-Marc,
Investisseurs Relations Investisseurs
investor.relations@showroomprive.net showroomprive@actus.fr
+33 1 53 67 36 94
Priscilla Le Minter, Communication Alexandra Prisa,
Relations Presse
priscilla.leminter@showroomprive.net aprisa@actus.fr
+33 1 76 21 50 16 +33 1 53 67 36 90
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[1] "General retail distance selling" category, organised by Viséo Customer
Insights
Regulatory filing PDF file
Document title: PDF EN
Document: http://n.eqs.com/c/fncls.ssp?u=QLUKKYESKU [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: 896585
End of Announcement EQS News Service
896585 24-Oct-2019 CET/CEST
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(END) Dow Jones Newswires
October 24, 2019 11:48 ET (15:48 GMT)
