Showroomprivé: Q1 2018 Revenues - Slight Downturn in Revenue / Deployment of the “Performance 2018-2020” Plan in Line with Expectations

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showroomprive.com

03 May, 2018, 15:45 GMT

LA PLAINE SAINT-DENIS, France, May 3, 2018 /PRNewswire/ --

Showroomprivé, a leading European online retailer, specialising in fashion for the Digital Woman, has published its net revenues for Q1 2018, ended 31 March.

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  • Showroomprivé recorded a 1.9% decline in net sales during the first quarter 2018 at 150.8 million euros.
  • This decline is consistent with a generally sluggish consumption environment in the first quarter as well as the continuation of a difficult 2017-2018 winter season for the Group.
  • Within the framework of the "Performance 2018-2020" plan, the Group also increased its level of requirement in the commercial execution. This enhanced selectivity, the objective of which is to improve the Group's financial performance in the mid-term, has punctually weighed on revenues.
  • Simultaneously, the other measures of the "Performance 2018-2020" plan were deployed in line with expectations, showing tangible progress.
  • An update of the "Performance 2018-2020" plan's progress shall be made at the end of the second quarter of the year.

KEY FIGURES Q1 2018               

                                            Q1 2017     Q1 2018
    Net Revenues (millions EUR)*            153.8       150.8
    Total Internet Revenues (millions EUR)* 149.3       145.8
   

    Number of Buyers (in millions)**          1.5         1.5
    Revenues Per Buyer (EUR)**               96.2        93.8
    Number of Orders (in millions)            3.7         3.4
    Average Number of Orders per Buyer**      2.4         2.3
    Average Basket (EUR)**                   40.4        40.6

    (millions)                              31/03/2017  31/03/2018
    Total buyers**                            7.0         8.2

                                            %Growth
    Net Revenues (millions EUR)*            -1.9%
    Total Internet Revenues (millions EUR)* -2.4%

    Number of Buyers (in millions)**        -5.9%
    Revenues Per Buyer (EUR)**              -2.5%
    Number of Orders (in millions)          -8.6%
    Average Number of Orders per Buyer**    -2.9%
    Average Basket (EUR)**                   0.4%

                                          Variation
    Total buyers**                          17.2%

*IFRS
** Exclusive of Beauteprivee

Commenting on these results, Thierry Petit and David Dayan, co-founders and co-CEOs of Showroomprivé stated: "The progresses recorded during this quarter are in line with expectations established by our "Performance 2018-2020" plan, the positive effects of which should gradually materialize throughout the year. The implementation of these undertakings on which we have been fully focused, partly explains the contraction of our activity in the first quarter. We strongly believe in the virtues of our "Performance 2018-2020" plan and remain fully confident in the Group's potential in the medium term".

HIGHLIGHTS OF THE FIRST QUARTER 

  • 150.8 million euros in net revenues, down 1.9% (-7.7 % on a like-for-like basis).
  • The decline in activity materialized both in France and abroad, inter alia reflecting a challenging retail environment.
  • The implementation of the "Performance 2018-2020" plan's various undertakings, along with a higher standard of business requirement and an increased sales selectivity threshold weigh on the activity in the short term without calling into question the positive effects to be expected in the medium term.
  • 1.5 million buyers over the period, down 5.9%, and a 2.5% decline in revenue per buyer following on the declining business momentum observed since the 4th  quarter 2017.
  • The deployment of the "Performance 2018-2020" plan is taking place in line with expectations showing tangible progress:
  • Improvement of the operational efficiency, particularly with the ongoing reinforcement of the commercial approach and deployment of new management tools.
  • Ongoing reinforcement of sourcing teams with senior profiles, with arrivals in categories which under-performed end of year 2017.
  • Significant commercial successes over the quarter with strategic brands thanks to the Group's focus on its relations with brand partners.
  • First offers of monetization of traffic.
  • Operational relations initiated with Carrefour are well underway: both Groups are currently working in the form of workshops on each of the 4 identified synergy lines, namely: offering, logistics, marketing and data. The first common initiatives will emerge in the second quarter of the year.

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 considers that the expectations reflected in such forward-looking statements are reasonable, investors and shareholders of the Group 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, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, this forward-looking information and these 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 Meeting of Shareholders: 14 June 2018
Results for the 1st semester 2018: end July 2018

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