ShowroomPrivé posts revenue rise of nearly 13% in 2020
Thierry Petit, co-CEO of online event sales group ShowroomPrivé, recently told FashionNetwork.com that it was looking as though the group’s efforts were coming to fruition in 2020. The French pure player’s Q4 results have confirmed this impression, as ShowroomPrivé recorded annual sales of nearly €700 million last year. It is the best result ever posted by the group, well up from the €616 million generated in 2019.
ShowroomPrivé’s annual results will be published on March 11, and in the meantime the group indicated that sales grew by 23% in Q4, well above expectations, and that the figures are proof of the efforts made by ShowroomPrivé to boost the appeal of its product range, notably by introducing new brands in the fashion, home decoration and beauty categories. During a crisis year in which e-tail accounted for 21% of all fashion sales in France, ShowroomPrivé’s contemporary style positioning, aimed at digital-savvy women, proved to be successful, boosted by campaigns that attracted new customers.
“Greater selectivity, and the shopping model’s evolution (notably towards drop-shipping) have had a positive effect on inventory management,” said ShowroomPrivé, adding that “this improvement, associated with the boost provided by our growth drive and the full deployment of the 2018-2020 performance plan (featuring process optimisation, streamlined logistics and cost reductions) have enabled the group to revise upwards its EBITDA guidance, now estimated at over €40 million, instead of the previous forecast of over €30 million.”
This new-found optimism comes in the wake of several disappointing financial years for the listed group. Petit has admitted that tight margin control has not been a regular feature, as the group undertook a plethora of new initiatives, partnerships and acquisitions in the last few years. Hence the drawing up of a zero-base strategy in 2019, with a triple focus on finance, operations and the product range. Regarding the latter, ShowroomPrivé decided to gradually raise the profile of its catalogue, while also tightening control over its variable-cost margin, in an effort to eliminate ‘bad’ sales.
For the early part of 2021, the group has stated it can rely on “remarkably strengthened fundamentals,” and that it intends to “continue on its dynamic course of value creation in a favourable context, since the health crisis has accelerated a sustained increase in online shopping.”
The French e-commerce federation has reported a 29% rise in online sales of consumer goods to households in 2020. It is an opportunity for ShowroomPrivé, which currently employs 822 people.
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