ShowroomPrivé’s losses plummet, sales slump in H1
Between January and June, ShowroomPrivé recorded a loss of €41.4 million, including €12.8 million of non-recurring charges, as opposed to a much more modest loss of €6.5 million in the first six months of 2018.
In the same period, the French group’s revenue fell by 4.3%, down to €302 million.
ShowroomPrivé was hit by decreasing sales in France (-1.8%), the country where it generates over 80% of its business, and also indicated it lost 4.4% of purchasers.
The group blamed a consumption environment it defined as “bleak”, and pointed the finger at “one-off logistics surcharges” and “difficulties in managing excess inventory.”
“The first six months of the year obviously weren’t in line with our expectations,” said ShowroomPrivé’s founders and CEOs Thierry Petit and David Dayan, cited in a press release.
The group has set itself the objective of “being profitable again” in the second half of the year, “although it won’t be able to make up for the ground lost in H1.”
At this troubled time, ShowroomPrivé also announced the appointment of a new chief financial officer, François de Castelnau, a manager experienced in the distribution sector. His predecessor “left the company” after the publication of the annual results for 2018, according to ShowroomPrivé.
In 2018, the group managed to cut its net loss to €4.4 million (compared to -€5.2 million in 2017), while increasing its revenue by 2.6%, to €672 million.
ShowroomPrivé started in business in 2006, and has been listed on the Paris stock exchange since 2015.
Translated by Nicola Mira
Copyright © 2019 AFP. All rights reserved. All information displayed in this section (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the contents of this section without the prior written consent of Agence France-Presses.