Showroomprivé 2022 revenues decline by 9.2 percent

Showroomprivé (SRP Group), for the year ended December 31, 2022, reported net revenue of 657.4 million euros, down 9.2 percent from 2021 and down 11.4 percent on a like-for-like basis. Compared with the pre-Covid-19 pandemic, 2022 revenue was up 6.8 percent.

The company said in a statement that while the group anticipated some of the year’s challenges including supply shortage, cost increase related to fret and logistic disruption at suppliers end, it had to contend with a slower-than-expected rebound in consumer spending, which led to a slower than anticipated second-half growth in revenue of 4.9 percent. On a like-for-like basis, H2 revenue was stable with an increase of 0.6 percent.

Commenting on the group’s targets to improve profitability, David Dayan, co-founder, chairman and CEO of Showroomprivé, said: “During 2022, a year in which consumer spending came under pressure, Showroomprivé displayed the agility necessary to meet customers satisfaction while maintaining its profitability. We have laid down our major strategic priorities in our ACE roadmap to set a clear path for future growth despite the still uncertain environment.”

The company’s online sales in France declined 10.6 percent but were up 5.6 percent compared to 2019. The Bradery’s reported an annual growth of over 17 percent, of which seven months were consolidated by the group. The marketplace business recorded a strong growth in its sales of 96 percent. The travel & leisure segment rose 69 percent, while Beauté Privée’s sales declined relative to 2021 affected by the slower-than-anticipated roll-out of partnerships with the brands.

SRP Services posted a 6 percent increase in 2022, while SRP Media posted a growth of 4 percent and SRP Studios increased by 43 percent.

The international share of total revenue moved up 1.2 points to 18 percent and revenue from other activities including wholesale sales of unsold items or returned items was stable at 7.5 million euros.

Gross margin declined to 37.2 percent and net income of 0.3 million euros was below that of 2021 as a result of the significant drop in business during the first half of the year.

Despite persisting market uncertainties, Showroomprivé expects market conditions to improve in 2023 and intends to continue to focus on its profitability and business model optimisation.