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ShowroomPrivé’s sales decrease in first quarter 2019
The net revenue of French event sales website ShowroomPrivé fell by 2.3%, down to €147.3 million, in the first quarter 2019. Excluding the effect of the closure of the site’s German and Polish subsidiaries, and of the group's multi-currency sites, as reported by FashionNetwork.com last January, the downturn was 1.76%.
Business was particularly flat at the start of 2019, with an average purchase basket of €40.5, down 0.1%, and an average number of orders of 2.3, down 0.8%. Added to a 2.3% decline in the number of buyers, down to 1.4 million, this meant that average revenue per purchase was down 0.9% to €92.9.
“Of course, the closing down of countries like Germany and Poland affected our growth, while the economy in general was weak, and February was a tough month for consumption expenditure,” said ShowroomPrivé’s co-CEOs Thierry Petit and David Dayan. “In this context, we are focused more than ever on implementing our strategies for growth and profitability optimisation, the main goals of our Performance 2018-2020 plan,” they added.
The group stated that it is tightening up operating expenses, while also optimising marketing expenditure and rationalising back-office functions. In addition, ShowroomPrivé is strengthening its sales team, to attract new brands and offer greater choice to its 10 million customers in France.
Last year, ShowroomPrivé generated a sales volume of €900 million and a revenue of €672 million, equivalent to a 3% increase, thanks to a positive fourth quarter result. The group managed to shrink its losses to €4.4 million, compared to €5.2 million a year earlier, and currently employs just over 1,150 people.
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