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Showroomprivé records 28.2 percent sales rise in Q3

By Prachi Singh

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Business

European flash fashion website Showroomprivé has said in a statement that the e-commerce market’s growth recovered in the third quarter, following a temporary slowdown in the second quarter and in this context, the group recorded sustained revenue growth of 28.2 percent to 134.3 million euros (158 million dollars), driven by France and international businesses.

Commenting on the third quarter trading, Thierry Petit and David Dayan, Co-founders and co-CEOs of Showroomprivé said: “The growth observed during the third quarter underscores our strategic decisions, notably our international development, where business is increasing rapidly. We have continued the group’s in-depth transformation initiated this year, by organising the first commercial joint operations with Conforama, and by continuing to invest significantly in order to expand our business activities.”

Showroomprivé revises FY17 revenue guidance

The company added that revenue per buyer increased by 3 percent over the third quarter, while the number of orders per buyer increased by 2.7 percent; while the average basket size remained stable, and the number of buyers rose by 16.1 percent. On the international front, positive like-for-like growth momentum was confirmed in the quarter boosted by an innovative advertising campaign in Spain, Italy, Portugal, and Belgium in the fourth quarter.

The in-depth strategic transformation initiated by Showroomprivé, the company said, together with the investments made by the group in order to increase its business volumes and reinforce its positions, is weighting on margins in the short term. In addition, the company has factored in the higher than expected one-off increase in logistics costs relating to an increase in inventory purchases made in the first half of the year and in this context, the company now expects its revenues to be 690 million euros (811 million dollars), a rise of 28 percent and its EBITDA objective excluding Saldi Privati to be 25 million euros (29. 4 million dollars), an EBITDA margin of 4 percent.

The company added that its objectives for 2020 remain unchanged with a net revenues target of 1.1 billion euros (1.2 billion dollars) and EBITDA margin exceeding 7.5 percent.

Picture:Facebook/showroomprivé

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