ShowroomPrivé sales down 22% in first quarter
E-commerce platform ShowroomPrivé reported a 22% drop in revenues in the first quarter to €138.9 million. This decline contrasts with the outstanding increase of 51% over the same period a year earlier. The group expects to rebound by the end of the year.
ShowroomPrivé recorded a turnover of €203.6 million and an 11.5% increase in average shopping baskets to €49.8 over the January-March period. The recovery in travel and tourism only partially offset the slowdown in other markets, such as fashion and household appliances, where inventory shortages reduced the destocking needs of partner brands. Beauté Privée's sales will continue to suffer from the platform migration, while marketplace activity would result in much higher shopping baskets than other sales models available.
"In line with the second half of 2021 and, as announced, the decline in activity at the beginning of 2022 reflects a still deteriorated market environment, heavily marked by uncertainty regarding inventories and supply chain disruptions in certain markets," said CEO David Dayan. "The second quarter of 2022 is looking better despite a decline in sales. We are already seeing an improvement in inventory availability which should increase in the second half of 2022."
A few days ago, ShowroomPrivé announced the acquisition of online sales platform, The Bradery, which will help it in upgrading its product offering. The group reports to have 1.2 million buyers, including one million loyal buyers (having purchased items last year and the year before).
In 2021, ShowroomPrivé increased its revenue by 3.8% to €723.8 million, while its turnover stood at €922 million in 2021 (up 3.1%). EBITDA increased to €48.2 million, compared with €42 million in 2020. The period of crisis marked the company’s return to profitability, with turnover up 13.3%, as confinements boosted online sales.
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