- GROSS MERCHANDISE VOLUME (GMV1): €207.1M
- REVENUES: €144.7M (+7.5%)
- POSITIVE CONTRIBUTION FROM THE BRADERY TO THE GROUP'S GROWTH
- INCREASE IN THE AVERAGE BASKET (+7.3%)
La Plaine Saint Denis, October 20, 2022 - Showroomprivé (SRP Group), a European group specializing in smart shopping, publishes its net revenues for the third quarter and the first nine months ended September 30, 2022.
Third-quarter net revenues up +7.5% compared to Q3 2021
- Net revenues up +7.5%, driven by better-than-expected activity in July and August, despite a drop in e-commerce traffic compared to the same period in 2021;
- Normalization of the normalized comparison base as brick-and-mortar stores reopened in May 2021;
- Positive performance across all segments, most notably in Travel & Ticketing where sales grew by +36% year-on-year;
- Efficient reduction of inventory over the summer of 2022, thanks to a targeted pricing policy in a challenging market environment;
- Full integration of The Bradery, now fully integrated and which net revenue is fully consolidated;
- Satisfactory performance from Beauté Privée compared to Q3 2021;
- Good performance of the Marketplace, which continues to grow;
- Satisfactory performance from SRP Media despite the traditional low activity during the summer period;
- Strong growth of the average basket size (+7.3%) thanks to the premiumization efforts;
- Firm sales maintained at a high level and accounts for around 1/3 of net revenues, as greater firm purchases were made over H1 2022 in light of the inventory shortages at the time. The proportion of dropshipping and conditional sales respectively remained stable.
9-month revenues down -13.9% compared to 2021, but up +5.4% compared to 2019
- 9-month revenues up +5.4% compared to the same period in 2019.
- Decrease in the 9-month revenues compared to 2021 as a consequence of the decrease in the first half of 2022, which was however partially offset by the growth of the third quarter;
Outlook for the end of 2022
- Margins under pressure considering level of firm inventory purchases in H1 2022 and pricing efforts to ensure high competitiveness in a more challenging market environment;
- Pressure on margins also linked to inflation-induced cost increases, particularly from fulfillment and logistics;
- Tight cost control to adapt to changing business dynamics and the inflationary environment;
- Continued development of new offerings and ESG initiatives, such as the recently launched Second Show program, to anticipate new trends and consistently adapt our value proposition;
- Target to further strengthen our agile and profitable business model.
In addition, following the internal appointments of two Deputy Managing Directors in mid-September, Showroomprivé has renewed and strengthened its management team by recruiting new profiles to fill key positions (Human Resources Director, Chief Marketing Officer, General Manager of Beauté Privée, General Counsel, Director of External Relations and ESG).
Commenting on the Q3 figures, David Dayan, Co-founder, Chairman and CEO of Showroomprivé, said:
“The significant business growth in the third quarter is a testimony of the relevance of the Group's business model in a challenging market environment. The excellent performance of the Travel business in particular, which has been consistent for several quarters now, demonstrates the appeal of our platform and the quality of our offering. We are also continuing our diversification and premiumization strategies with the consolidation of The Bradery, which has made a positive contribution to the Group's revenue growth over the third quarter. Despite the modest upswing during the third quarter, the current volatility of the market is set to persist throughout the remainder of the year. In this context, we still cannot provide net revenue nor profitability targets for the full year 2022. Showroomprivé is actively taking action to preserve its margins in an environment marked by cost inflation and a more pronounced wait-and-see attitude on the part of consumers, in order to drive a profitable business model. This is the roadmap established by the Executive Committee, which has just been complemented with the arrival of members whose diverse profiles strengthen the Group governance.”
Q3 AND 9-MONTH 2022 NEt REVENUES
|(€ in millions)||Q3 2021||Q3 2022||Change 2021/2022|
|Total Internet revenues||132.8||142.8||7.6%|
|(€ in millions)||9-month 2021||9-month 2022||Change 2021/2022|
|Total Internet revenues||518.0||444.1||-14.2%|
Group net revenues for Q3 2022 stands at €144.7 million, up +7.5% compared to Q3 2021, with Internet revenues up +7.6% to €142.8 million as a result of several factors:
- Normalization of the comparison base: over the previous financial year, the sanitary crisis created a tailwind effect for e-commerce activities. As the end of the lockdowns and curfews took place in May 2021, a normalization of the comparison base has been restored;
- Good performance from all segments over the period, and in particular the Travel & Ticketing business;
- Good performance from the international segment with a growth of 11.4%, higher than the growth recorded in the French market;
- Efficient reduction of inventory during the summer period thanks to a more aggressive pricing policy;
- Positive contribution over the period of The Bradery, now fully consolidated into the Group.
Several additional factors have contributed to the business growth. Beauté Privée revenues are in a positive trend and are no longer suffering from the platform migration. The performance of the Marketplace was in line with expectations, although it has not yet reached its full potential.
However, SRP Media bore the more cautious stance of advertisers in their spending during the summer period but is still returning a satisfactory performance following excellent results in recent quarters. The segment showed strong growth over the first 9 months of 2022 compared to the same period last year.
Revenues from other activities (wholesale sales of unsold inventory or returned items) increased to €1.9 million, up +2.7% compared to Q3 2021.
Over the first nine months of the year, net revenues reached €450.1 million, down -13.9% compared to the first nine months of 2021 due to the unfavorable comparison basis affecting the first half of the year, as well as a continued challenging macro-economic and geopolitical environment that is eroding household confidence and purchasing power. The good performance in Q3 2022 was not sufficient to offset the decline in revenues over the first six months of the year.
Nonetheless, compared to a more normalized period such as the nine month of 2019, the performance over the first nine months of 2022 records a growth of +5.4%.
Analysis of key performance indicators
|Q3 2021||Q3 2022||Change |
|Gross Merchandise Volume (GMV)2||190.9||207.1||+8.5%|
|Cumulative buyers* (in millions)3||11.1||11.8||+6.3%|
|Buyers** (in millions)3||1.2||1.1||-1.0%|
|o/w loyal buyers***||1.0||1.0||-2.7%|
|As a % of number of total buyers||89%||88%||NS|
|Number of orders (in millions)3||2.6||2.5||-2.6%|
|Revenue per buyer (IFRS)3||106.8||112.7||+5.6%|
|Average number of orders per buyer||2.2||2.2||-1.6%|
|Average Basket Size (€)||48.3||51.8||+7.3%|
|9-month 2021||9-month 2022||Change |
|Gross Merchandise Volume (GMV)2||718.6||639.0||-11.1%|
|Cumulative buyers* (millions)3||11.1||11.8||+5.9%|
|o/w loyal buyers***||2.2||1.9||-12.3%|
|As a % of number of total buyers||81%||81%||NS|
|Number of orders (in millions)3||9.9||7.9||-20.6%|
|Revenue per buyer (IFRS)3||177.1||172.0||-2.9 %|
|Average number of orders per buyer||3.7||3.3||-10.3%|
|Average Basket Size (€)||47.8||51.8||+8.4%|
While the Group recorded growth of +8.5% in the third quarter, GMV for the first nine months of 2022 came to €639 million, down -€79.6m (-11.1%) compared to the same period in 2021.
Since January 1, 2022, the number of cumulative buyers has increased by 0.7 million, representing new buyers from both France and International, bringing the total number to almost 11.8 million. However, the number of buyers declined over the period due to a drop in traffic on the e-commerce site.
The average number of orders per buyer stood at 3.3 compared to 3.7 in 2021, which is a decrease but is significantly less than the total number of orders, which fell to 7.9 million from 9.9 million in the first nine months of last year.
Revenue per buyer decreased from €177.1 to €172.0 in the first nine months of the year due to a lower number of orders. Nevertheless, the average basket size rose to €51.8 over the period (compared to €47.8 in Q3 2021), buoyed by an increasingly higher quality offer as a result of the premiumization strategy.
The significant growth in business in Q3, after two quarters of sharp decline in revenues, is a positive factor that demonstrates the strength of Showroomprivé's positioning and the materiality of the changes initiated in recent months. However, the environment remains volatile and uncertain, and the recovery expected in the second half of the year has not fully materialized yet. Therefore, it has and will continue to have an impact on margins and EBITDA.
The Group continues to pay close attention to the reduction of its inventories, its firm purchasing policy and negotiation conditions, in order to further to adapt to the more challenging market context. More generally, the Group is focused on remaining agile while keeping a tight control over costs and will continue to pursue commercial initiatives intended to adjust its value proposition to new consumer behavior.
While it remains difficult to put forth revenue or profitability targets for the end of 2022, the Group focuses on preserving its profitability while developing growth opportunities.
Join the Showroomprivé Group of Shareholders
2022 full-year results: March 8, 2022
This press release contains only summary information and is not intended 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," "goal" 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 (France's financial markets authority) made or to be made by the Group (particularly those detailed in Chapter 4 of the Company's registration document). The Group makes no commitment to publicly update its forward-looking statements, whether as a result of new information, future events or otherwise.
Showroomprivé is an innovative European player in the online private sales industry, specialized in fashion. Showroomprivé offers a daily selection of more than 3000 brand partners via its mobile apps or website in France and six other countries. Since its launch in 2006, the company has enjoyed quick growth.
Showroomprivé is listed on Euronext Paris (code: SRP) and reported gross revenue of almost €1 billion incl. VAT4 in 2021, and net revenue of €724 million. The Group is headed by David Dayan, the co-founder, and employs over 950 people.
For more information: http://showroomprivegroup.com
|Sylvie Chan Diaz, Investor Relations |
|Anne Charlotte Neau-Juillard, Communication |
+33 1 83 97 41 48
1 Gross Merchandise Volume (GMV) is the total amount transactions invoiced, inclusive of all taxes. It therefore includes gross online sales, including sales on the Marketplace, other services and other income. The revenue reconciliation table is appended.
2 Gross Merchandise Volume (GMV) is the total amount of transactions invoiced, including all taxes. It therefore comprises gross online sales, including sales on the Marketplace, other services and other revenues.
3 Excl. Beauté Privée and The Bradery for number of buyers
4 Gross Merchandise Volume (GMV) is the total amount transactions invoiced, including all taxes. It therefore includes gross online sales, including sales on the Marketplace, other services and other income