Privalia closes a very positive 2013: 16.6 million gross profit

2013 has been a good year for the online fashion outlet Privalia. The Spanish fashion company closed last year with a gross operating profit (EBITDA ) of 16.6 million euros. This is the first consolidated annual profit for the company.

"In 2013 we made a qualitative and quantitative improvement of our catalogue, updating it daily and making it more relevant and engaging for each of our customer segments," explained Thursday in Barcelona the country manager of Privalia for Spain, Miguel Giribet.

Over the last twelve months, the online fashion group has focused primarily on increasing profitability in its mature markets - namely Europe - and on improving the efficiency of the rest of the markets.

According to data gathered by EuropaPress, the results achieved so far are in line with their targeted long term EBITDA, expected to come in at 8-10 percent.

Privalia closed 2012 with sales of more than 422.5 million euros, up 32 percent from the previous year.

15 percent growth for Privalia in Spain

Sales in its home market, Spain, have been especially notable with a growth of 15 percent year-on-year. Privalia retained about a quarter of the national online fashion market, directly competing with the likes of Zara or Mango.

"In 2013 we made a major effort to reduce operating costs and build up a culture of efficiency" stressed Giribet.

If last year Privalia centred its efforts in reducing operating costs, this year it is everything about achieving greater profitability. Thus, investment of the company in 2013 was aimed at reducing operating costs, increasing efficiency and improving customer service.

Nevertheless, a satisfied Giribet nsures that 2013 has been a "very good year" for sales, although not wanted to reveal the turnover of the company.

The growth strategy Privalia gives prominence to its mobile strategy, a channel that currently generates almost half the company's sales in Spain. Additionally, the group is working on improving its strategic focus to offer fashion and design.

The retailer founded by Lucas Carné and José Manuel Villanueva also notes that this focus on fashion has been a success , becoming one of the engines that have contributed to the increase in EBITDA as the outlet niche is " more competitive" in the fashion category than in any others.

Privalia remains optimistic about the coming months: "The conduct of business during the first quarter of 2014 makes us think we can close this year with double-digit growth ," stressed Giribet .