- Prachi Singh
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First half revenues at Showroomprivé were down 4.3 percent to 302
million euros (336.5 million dollars), which the company said was due to a
sluggish global economic environment over the first six months of the year,
and the mechanical decline in revenues expected in international business.
The company added that the group posted an EBITDA loss of 23.2 million
euros (25.8 million dollars), i.e. a decline of 22 million euros, in line
with expectations announced on June 26, 2019.
Commenting on the first half trading, Showroomprivé co-founders and
co-CEOs Thierry Petit and David Dayan said in a statement: “The first half
clearly didn’t live up to our expectations – we faced logistics issues and
difficulties managing surplus inventories, in an increasingly demanding
environment. We intend also to step up and extend our logistics
optimisation efforts, which present a major challenge for the coming
months. Our sights remain set on our goal to turn our performance
around.”
Showroomprivé witnesses poor first half trading
The company added that Internet sales in France held up well, posting an
economic decline of 1.8 percent, in a context of optimisation of around a
third of marketing investments. SRP Media, one of the key pillars of the
Group’s strategy, suffered from an unfavourable comparison base with the
lack of one major advertising campaign, such as the one realised in H1 2018
which contributed over 2.5 million dollars. Adjusted for this operation,
the company added, SRP Media’s business was up 8 percent in line with the
strategy.
The company further said that internationally, the decline in revenues
can be attributed in equal part to closures in certain countries and a
refocusing of the offer, particularly at Saldi Privati in Italy, in order
to concentrate on the most profitable business opportunities and return to
profitability in the first half. The second quarter shows a better dynamic
and marks a rebound, which nevertheless was unable to offset the decline of
sales in the first quarter. Other revenues, including non-internet sales,
fell sharply since the group offered considerable discounts in an attempt
to run down surplus inventories via its non-internet sales channel, due to
a sluggish inventory clearance physical market over the first six months of
the year and logistics difficulties in the handling of returns also weighed
on business.
Underlying Operating income before cost of share-based payments and
other operating income and expenses amounted to a loss of 31.1 million
euros, compared to a loss of 6.3 million euros in the first half of
2018.
Picture:Showroomprivé media centre
