Showroomprivé 2021 sales up 3.8 percent

The Showroomprivé Group's net revenue in 2021 was 724 million euros, up 3.8 percent from 2020.

The company said in a release that after 28.3 percent increase in the first half, the group recorded a drop of 15 percent in revenue in the second half due to the effects of changing market conditions.

Commenting on the results, François de Castelnau, the group's deputy CEO and chief financial officer, said: "Given the more challenging market environment in 2022, particularly due to uncertainties in supply levels, disruptions of supply chains in certain sectors, lower offerings in the fashion segment owing to low productions from our brand partners over the last two years, business activity in the first half of 2022 should be lower than that that recorded in second half 2021."

Review of Showroomprivé’s performance

Revenue from Beauté Privée dropped 11.3 percent compared to 2020, which can be attributed to the difficulties involved in the migration of the platform as well as current market repositioning. Showroomprivé sales rose 42 percent.

Internet sales in France reached 595.2 million euros, an increase of 2.3 percent. Internationally, Internet revenue increased by 13.7 percent to 121 million euros, representing 16.6 percent of the group revenue. This increase comes from an enhanced offering and good performance from Saldi Privati in Italy. Portugal and Spain observed significant growth, as did Morocco, where Beauté Privée was launched.

Revenues from other activities were 7.6 million euros.

The gross margin for the full-year was 288.1 million euros, an increase of 15.1 million euros. EBITDA improved 14.7 percent to 48.2 million euros. Despite the slowdown in growth by 15 percent compared to the same period in the previous financial year, the group generated 15 million euros in EBITDA in the second half. Net income of the group was 27.3 million euros.

Showroomprivé expects revenue decrease in the first half

Given the challenging market environment since the start of 2022, Showroomprivé anticipates a decrease in revenue in the first half and increased pressure over purchasing conditions, therefore affecting its gross margin.

Based on healthier foundations, the group expects better market conditions in the second half of the year, due to a less demanding comparison basis as well as an expected higher level of available inventory in certain sectors, recovery in orders and a steady increase in travel and ticketing activity.