ShowroomPrivé third-quarter revenues down 8.5%
today Oct 25, 2019
ShowroomPrivé, the French online fashion retailer, saw its revenues fall 8.5% to €125 million ($136m) in the third quarter of the year, down from €136.7 million in 2018.
The company’s year-to-date results are also disappointing, showing a 5.6% decline in sales to €427 million ($466m) in the first nine months of the year, compared with revenues of €452.2 in the prior-year period.
The third-quarter decrease was attributed by the e-tailer to several factors, including the seasonal dip in sales during the summer period, “increased offering selectivity and discontinuation of low margin sales” It also noted that marketing investment was reduced “significantly” during the period, and that there was a gradual model shift from firm to conditional purchases.
But the financial update also showed positive signs, with the company highlighting that “existing customers strengthened their commitment to Showroomprivé, with revenue per buyer up 2% to over €90 in the third quarter.” These numbers demonstrate “the power of the online sales platform”, said the company, even though the number of buyers fell by 11.3%.
The company wants to return to profitability in the short term by implementing a series of measures under its Performance 2018-2020 plan, which involves “tightly controlling operating expenses, streamlining support services, optimising inventory management, progressive streamlining of supply chains and creating a commercial prospecting unit aimed at renewing the brand offering”.
Taking into account the third quarter results, the company, which has already lowered its guidance for the full year, said that the last quarter of the year will be crucial to the performance of the group. Known as the ‘golden quarter’, the festive period includes not only Christmas trading, but also Black Friday and ShowroomPrivé’s 13th anniversary.
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