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Fashionette's turnaround strategy impacts Q1 sales

By Prachi Singh



Image: Fashionette Pressroom

In its unaudited statement for the first quarter, Fashionette AG said sales from continuing operations amounted to 33.2 million euros, a decrease of 8 percent.

The company attributed the decline to the termination of the two business areas beauty and smartwatches.

Accordingly, gross income fell from 14.8 million euros to 13.1 million euros and adjusted EBITDA from 0.2 million euros to negative 0.5 million euros.

“The first quarter of 2023 marks the turnaround at Fashionette AG. We have closed unprofitable businesses, reduced costs, improved cash flow and are clearly moving towards luxury. Our platform strategy will significantly move sales from September 2023 and is a milestone in the luxury segment," said Dr. Dominik Benner, CEO of the company.

The Fashionette group was again able to increase the number of active customers by 10 percent to 1.08 million euros.

The company confirms the forecast and plans sales growth for the continuing operations of between 5 percent and 8 percent in the 2023 financial year. In addition, the company assumes that the number of new customers will increase by 3 percent to 6 percent in 2023 and that the average shopping basket will increase from 176 euros in 2022 to at least 200 euros. In addition, gross merchandise volume (GMV) is expected to reach 370.6 million euros.

As a result of the efficiency and cost reduction program that has been initiated, the management board expects a significant improvement in profitability and forecasts an adjusted EBITDA of between 2 million euros and 3 million euros.