Swedish fashion retailer Caliroots receives 1.7 million euros in funding
14 Aug 2019
New York – Swedish sneakers and streetwear retailer Caliroots announced earlier this week it has received a 1.69 million euro investment from Cristina Stenbeck, former chairman of Swedish investment company Kinnevik.
After the investment, Stenbeck now owns 7.9 percent of Caliroots. Additionally, venture capital film Verdane invested almost one million euros in the e-tailer.
Noteworthy, Caliroots has just announced it made a loss of about 3.75 million euros last year (well above the 843,000 euros loss incurred during the year before.) According to the latest annual report, Caliroots generated sales worth over 35 million euro, reported local press.
Andreas Koschnike, the CEO of Caliroots, told Swedish website ‘Ehandel’ that the weaker results can be attributed, among other things, to some errors in the product assortment. Normally, the online fashion retailers has a product margin of 38 to 39 percent, but last year this number decreased to 32 percent after the retail company relied on an overly heavy sneaker range during spring and that collection didn’t sell as good as planned.