Q1 2017 Revenues: Showroomprivé Posts Strong Growth Surge (+31%) in Q1 2017 and Confirms its Yearly Objectives

LA PLAINE SAINT DENIS, France, April 28, 2017 /PRNewswire/ --

Showroomprivé has registered a strong acceleration of its growth, with a 31% increase of its revenues during Q1 2017.   

• Showroomprivé has posted a strong surge in growth, with a +31% increase in Q1 2017 (+22% excluding Saldi Privati) and revenues reaching €153.8 million.

• This solid growth is driven by its French and International activities, and confirms the dynamics already observed at the end of 2016.

• The recruitment dynamic is still strong, with close to 300,000 new buyers in Q1.

• The revenue per buyer has increased by more than 11% to €94.8, driven both by the rise in buying frequency and in the average basket size.

• Showroomprivé's mobile strategy has been rewarded for its success: it received the UX Contentsquare 2017 Award for its mobile app at the e-Commerce One to One exhibition in Monaco.

• Targets for 2017 is confirmed: Net revenues between €690M and €720M (+28% and +33% by comparison with 2016) and EBITDA margin for the Group (excluding Saldi Privati) higher than 6%.

Other highlights:

• The acquisition of Beauteprivee was successfully finalised. Showroomprivé now owns 60% of the shares.

• In keeping with the Group's commitment to social responsibility, inauguration of the Showroomprivé Foundation - including a school dedicated to e-commerce for long-term job seekers in Roubaix.

KEY FIGURES FOR Q1 2017 

                                             Q1 2016      Q1 2017     %Growth
    Net revenues (EUR million)*                117.3        153.8       31.0%
    Total Internet revenues (EUR million)*     114.4        149.3       30.5%

    Buyers (millions)**                          1.3          1.5        8.4%
    Revenue per Buyer (EUR)**                   85.3         94.8       11.1%
    Number of Orders (millions)**                3.0          3.5       17.2%
    Average Number of Orders per Buyer**         2.2          2.4        8.1%
    Average Basket Size (EUR)**                 38.1         39.2        2.9%

    (million)                             31/12/2016   31/03/2017   Variation
    Cumulative Buyers**                          6.8          7.0        +0.3

*IFRS

** Excluding Saldi Privati & Beauteprivee

Thierry Petit and David Dayan, co-founders and co-CEOs of Showroomprivé, commenting those results, stated: "This acceleration of our growth confirms the success of our economic model. First, it proves our capacity to develop our business both in France and abroad. Besides, the number of buyers and revenue per buyer keep increasing. We are proud to be able to confirm our growth and profitability perspectives for the upcoming year."

Q1 HIGHLIGHTS

Strong growth acceleration

• Strong growth acceleration driven by our French and International activities (+31%) despite the impact of the sales being delayed by one week in France last January and of the month of February being shorter than last year, which also had an impact on French retail and e-commerce growth during the first quarter (consumer online spending only grew by 8.5% over the first three months of the year according to the Journal du Net e-commerce index).
• Growth is mainly driven by the strong increase in revenue per buyer (+11.1%) as well as in the number of buyers.
• The increase in revenue per buyer is itself driven by the increase in the number of orders per buyer (+8.1%) and in the size of the average basket size (+2.9%) compared with Q1 2016.
• Strong recruitment and conversion dynamics, with close to 300,000 new buyers over the period.

Continuous reinforcement of our international operations and pursuit of the implementation of the multi-local strategy initiated in 2016

• Launch of the Infinity service in Belgium and upcoming launch in Italy.
• Continued integration of Saldi Privati on the SRP platform in order to fully combine our Italian operations by the beginning of Q3 under the Saldi Privati brand.
• Consolidation of our local sourcing teams abroad.
• Launch of a pilot website in Morocco. The official inauguration of the website and the app is planned for Q2, after the completion of the current test phase.

Recognition of the Group's strong position on the mobile market

• The UX 2017 Contentsquare Award received by the Group for its mobile app reinforces our position as a 'mobile first' company.
• 75% of our traffic and 54% of our revenue were generated on mobile during the quarter.

Reinforcement of the Group's beauty offer with the finalisation of the acquisition of Beauteprivee

• Showroomprivé has successfully completed the acquisition of Beauteprivee and now holds a 60% share in the company, valuing it at €18 million at 100%, with an option to acquire the remaining 40% in 2019.
• This combining of the two companies will enable Showroomprivé to strengthen its position on the market of flash online cosmetics and wellness products sales, and to develop its Digital Woman dedicated services.
• With more than 3 million members and more than 800 partner brands, Beauteprivee has generated IFRS revenues of €19 million in 2016, i.e. a growth of more than 40% compared with the previous year, and an EBITDA of more than 7%.

With the inauguration of the Foundation and its e-commerce school, Showroomprivé has confirmed its social commitments

• In keeping with our commitment to CSR, the inauguration of our e-commerce school took place in Roubaix. It now welcomes long-term job seekers. Over 6.5 months, 18 students will receive innovative training in the field of e-commerce, which they will then be able to complete with a 6-month internship.
• Launch of the second edition of the Look Forward programme, having already hosted 8 new start-ups by the end of Q1.

CONFIRMATION OF THE GROUP'S OBJECTIVES

Confirmation of the Group's objectives for 2017

• Revenues of €690-720 million, i.e. a 28% to 33% increase compared with 2016 revenues.
• An EBITDA margin of more than 6% in 2017 - excluding Saldi Privati -  a 60-point increase compared to FY 2016 (excluding Saldi Privati)
• Ratio of cash flows from operating activities to EBITDA of more than 100%.

FORWARD-LOOKING STATEMENTS

This press release contains only summary information and does not purport to be comprehensive.

This press release may contain forward-looking information and statements about the Group and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "target" or similar expressions. Although the Group appreciates that the expectations reflected in such forward-looking statements are reasonable, investors and the Group's shareholders are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Group, which could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in filings with the Autorité des Marchés Financiers made or to be made by the Group (particularly those detailed in chapter 4 of the Group's annual report). The Group undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events or otherwise.

UPCOMING PUBLICATIONS

General Assembly of Shareholders: 26 June 2017

H1 2017 Results: 25 July 2017

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