Showroomprive.com
Showroomprive.com:Q1 2020 net revenues: EUR 118.2m Measured decline -
sensitive rebound of activity in April
07-May-2020 / 18:00 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Q1 2020 net revenues: EUR 118.2m
MEASURED DECLINE - SENSITIVE REBOUND OF ACTIVITY IN APRIL
La Plaine Saint Denis, 7 May 2020 - Showroomprivé, a leading European online
retailer specialising in fashion for the Digital Woman, has published its
net revenues for the first quarter of 2020, ended 31 March.
Net revenues for the first quarter came to EUR 118.2 million,
down 19.8% year-on-year, in line with the trend observed towards
the end of 2019. Business continued to be impacted by:
· Strategic decisions aimed at focusing the offering
on the most profitable offers: increased selectivity,
gradual model shift from firm to conditional
purchases, and an increase in drop shipping;
· Continued reduction in marketing expenditure
compared to Q1 2019;
· The decrease in physical wholesale volumes
following the unsold inventory rundown at the end of
2019 and the decrease in firm purchases;
· The extension of delivery and return times linked
to the health crisis period.
However, revenues are in line with the Group's roadmap
thanks to the commitment of a loyal customer base
representing more than 90% of revenues.
The Group recorded a return to revenue growth in April
2020, which remains to be confirmed over the coming
months, driven by the current surge in e-commerce and
the initial effects of the expansion of the sales team.
This is reflected in the signing of new brands,
enabling a renewal of the offer.
Showroomprivé co-founders and co-CEOs Thierry Petit and David Dayan
commented on these results: "The decline in revenues at the beginning of the
year is primarily due to strategic decisions to maintain a strong focus on
our most profitable offerings. This change was expected and we're on track
with our roadmap. The shift in our model, the expansion of our offering and
the strengthening of our sales team is expected to help improve the trend
over the coming quarters.
Besides, we have seen an encouraging upturn in business since the beginning
of April, reflecting a considerable increase compared to April 2019. Of
course, this trend will need to be confirmed over the coming months as
lockdown measures are lifted. This strengthens our resolve to continue to
work intensively on optimising our structure. Simultaneously, an agreement
signed with our banking partners at the end of April has secured our future
financing. We're therefore embarking on the next stages of the Group's
turnaround strategy with confidence.
We believe Showroomprivé is fully equipped to take advantage of its leading
position in the e-commerce sector, backed by some 10 million members."
Q1 2020 HIGHLIGHTS
Q1 2019 Q1 2020 Change
Net revenues (in millions)* 147.3 118.2 -19.8%
Total Internet revenues (in 144.0 117.2 -18.6%
millions)*
buyers (in millions)** 1.4 1.2 -15.8%
Of which loyal buyers 89.7% 90.3% +0.6 pts
Revenue per buyer (EUR ) 92.9 88.7 -4.5%
Number of orders (in millions) 3.3 2.6 -18.8%
Average Number of orders** 2.3 2.2 -3.5%
Average Basket size (EUR )** 40.5 40.1 -1.0%
31/12/2019 30/03/2020 Change
Cumulative buyers*** (in 9.8 9.9 +1.4%
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 amounted to EUR 118.2 million for the first quarter of
2020, down 19.8%. Adjusting for the last sales in Germany as part of the
strategy adopted in 2018 to close down business operations in certain
countries, net revenues were down 18.5%.
However, this decrease in revenues is in line with the Group's roadmap and
the trends recorded towards the end of 2019. Business is naturally still
impacted by strategic decisions rolled out last year. The volume of the
offering decreased due to the policy of increased selectivity, with the
discontinuation of unprofitable lines. This had an inevitable knock-on
effect on the number of orders. In addition, the reduction in marketing
expenditure geared towards acquiring new customers has impacted the number
of new buyers.
In details, Total Internet revenues, which represent the Group's core
business (98% of total revenues) fell 18.6% to EUR 117.2 million, down
17.4% excluding the impact of the aforementioned closures.
Worldwide revenues were down 22.6%. Excluding the impact of the Polish,
German and multi-currency site closures, revenues were down 14.8%. Saldi
Privati posted a decline for the quarter due to greater selectivity of
product offerings protecting the profitability of international activities
and the impact of lockdown in Italy.
Other revenues, including physical non-Internet sales amounted to EUR 1
million, compared to EUR 3.2 million in the first quarter of 2019, due to
the decrease in the Group's unsold inventories, following massive clearance
operations during the previous financial year and the reduction in firm
purchases.
Customers maintained their commitment to Showroomprivé during the quarter,
with a relatively stable average basket and number of orders per customer,
reflecting the resilience of the brand and the power of the online sales
platform. Similarly, the contribution of loyal customers now represents over
90% of Group revenues.
During this period, the Group has continued the shift from a firm purchase
model (down 4.5 percentage points to 14% of revenues) to conditional
purchases and drop shipping (up 10.5 percentage points to 20.9% of
revenues).
Outlook
Since the beginning of the health crisis and associated restrictions,
Showroomprivé has continued to do business while implementing the necessary
protective measures to safeguard the health of its employees and their
families. The Group is constantly adapting its procedures and staff in line
with business levels, implementing short time working arrangements where
required.
All activities (including Internet and media) were impacted in the first two
weeks of lockdown, particularly in light of the disruptions and necessary
adjustments to the supply chain. The Group's business remains intrinsically
linked with delivery and supply capabilities in countries where it operates.
Deadlines for returns have been extended, enabling Showroomprivé shoppers to
fully benefit from their terms of purchase, an arrangement that will make
returns management more complex throughout the first half and even in the
second semester if the state of health emergency is extended
However, since April 2020 the Group has noted a significant upturn in sales,
posting considerable growth compared to April 2019 and outperforming the
roadmap. The Group is benefiting from a favourable context for e-commerce,
while also starting to reap the benefits of measures designed to strengthen
relations with brands, illustrated by the signing of new partnerships with
major groups offering a broad range of brand names. This encouraging trend
will need to be confirmed over the coming weeks and months. Only the travel
and leisure businesses remain practically stopped, given the exceptional
circumstances affecting these sectors.
The level of activity coupled with the business plan in line with
expectation as well as the full effect of the rationalization measures
initiated in 2019 allow the Group to confirm once again its ambition of a
gradual trajectory to improve its EBITDA margin.
The Group also reminds readers that on 30 April 2020 it announced the
signing of an agreement with its banking partners [1], securing and
strengthening its short- and medium-term financial structure. Under this
agreement, currently under approval, Group debt now consists of EUR 62
million of term loans repayable on maturity in 2026 and a EUR 35 million
loan with a 90% state guarantee (PGE), maturing by 2026. An EUR 8-10
million capital increase will also be carried out, subject to the approval
by the company's General Shareholders' Meeting - scheduled for June 8 - of
the delegations necessary for this purpose, as well as a decision by the
french Autorité des Marchés Financiers (AMF) to waive the mandatory deposit
requirement of a public offer likely to result from the implementation of
the guarantee commitment of the founding shareholders.
Next release
Results for the first semester of 2020: end of July 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 growth.
Listed on the Euronext Paris market (code: SRP), Showroomprivé achieved a
gross business volume with all taxes included of more than 822 million euros
in 2019, and net revenue of 616 million euros. The Group employs more than
950 people.
For more information: https://www.showroomprivegroup.com [2]
WARNING
Certain information included in this press release does not constitute
historical data, but forward-looking statements. These forward-looking
statements are subject to risks and uncertainties, particularly related to
the current health context. These risks and uncertainties appear in addition
to those described and identified in Chapter 3 "Risk factors" of the
Universal registration document filed with the Autorité des Marchés
Financiers (AMF) on April 30, 2020, available on the Company's website
(www.showroomprivegroup.com) and on AMF's website (www.amf-france.org). This
press release only includes summary information and does not purport to be
exhaustive
Contacts
Showroomprivé ACTUS finance &
communication
François de Castelnau, Directeur Grégoire Saint-Marc,
financier 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
Regulatory filing PDF file
Document title: Q1 2020 net revenues: EUR 118.2m Measured decline -
sensitive rebound of activity in April
Document: https://eqs-cockpit.com/c/fncls.ssp?u=EWVDEMWCRT [3]
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 / Other releases
EQS News ID: 1038959
End of Announcement EQS News Service
1038959 07-May-2020 CET/CEST
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May 07, 2020 12:00 ET (16:00 GMT)
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