Showroomprivé’s revenue stable in H1 2020
French event sales website Showroomprivé, which is set to publish its H1 results on July 27, is anticipating that its revenue in the period will reach between €301 million and €303 million, having been €302 million a year ago. This stability is the result of the sales rise enjoyed by Showroomprivé during the lockdown period.
The announcement coincides with the start of the operation Showroomprivé is carrying out to boost its financial position, as previously reported by FashionNetwork.com: a share capital increase up to a maximum of approximately €10 million, supported and backed by David Dayan and Thierry Petit, the website's joint directors, who currently hold a 24.25% stake in the company.
In Q1 2020, Showroomprivé’s net revenue fell by 19.8%. But in the following quarter, driven by the lockdown period in France and Europe and the widespread closures of brick-and-mortar stores, orders reportedly rose by 19%, so that Showroomprivé’s revenue in H1 ended up being on par with the previous year's.
“The group has benefited both from the positive economic impact of the current situation on e-commerce in general, and from the first effects of its efforts to revitalise the commercial team. [The group] has continued with its strategy of focusing more intensely on profitability, and of gradually changing its business model, replacing outright purchasing with hire purchasing and drop shipping,” said Showroomprivé. “Furthermore, the recent quarterly growth has been achieved while some of the group’s lines of business, notably travel and leisure, were strongly impacted by the lockdown period,” added Showroomprivé.
These above-expectations H1 results are going hand in hand with the group’s rationalisation measures, which enabled Showroomprivé, as of June 30, to post a positive EBITDA comprised between €5.5 million and €7.5 million, when a year ago the group's EBITDA was €23 million in the red. As of May 31, Showroomprivé’s net cash position was €12.7 million.
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