Showroomprivé: Q3 2017 Revenues – Continued Sustained Growth and Strategic Transformation

Showroomprivé, a leading European online retailer specialising in fashion for the Digital Woman, has published its results for Q3 2017, ended on 30 September.

• Sustained growth in the third quarter with a 28% increase in revenues, to €134 million.

• Continued strategic transformation of the Group in the third quarter:
  • Roll-out of the strategic partnership with Steinhoff and its subsidiary Conforama rapidly ramping up with the opening of Showroomprivé Click & Collect points in 11 Conforama stores, together with the first commercial joint operations.
  • Strong organic international growth trend confirmed which comforts the multi-local strategy implemented by the Group.
  • Saldi Privati now fully integrated, strengthening the Group’s positions on its largest market outside France.
  • Significant boost of beauty and well-being products offering thanks to Beauté Privée’s contribution and know-how.

• The Group continued to invest significantly in the third quarter in order to reinforce its positions, drive its members’ engagement and prepare for the future. The in-depth strategic transformation initiated by Showroomprivé and the execution of its strategic roadmap, is weighting on margins in the short term, however the effects will be decisive for achieving its long-term targets.
• In this context, Showroomprivé updates its revenues objective to c.€690 million (growth of c.+28%) and its Group’s EBITDA objective (excluding Saldi Privati) to c.€25 million (i.e. an EBITDA margin of c.4%).

Thierry Petit and David Dayan, co-founder and co-CEOs of Showroomprivé’s commenting these revenues, stated: “The growth observed during the third quarter underscores our strategic decisions, notably our international development, where business is increasing rapidly. We have continued the Group’s in-depth transformation initiated this year, by organising the first commercial joint operations with Conforama, and by continuing to invest significantly in order to expand our business activities. Our industry is evolving quickly and we must be agile, proactive and enterprising to meet our members’ expectations and face its volume issues. We have a clear road map for the future of our Group. Implementation of this strategic plan is decisive for sustainably strengthening the Group’s profile and increasing genuine value-creation in the medium and long term. We are convinced about this and we favoured strengthening our business profile and growth with a long term view rather than optimizing our short term profitability.”
Q3 HIGHLIGHTS
Sustained growth for the Group:

• The e-commerce market’s growth recovered in the third quarter, following a temporary slowdown in the second quarter.
• In this context, the Group recorded sustained revenue growth of 28.2% to €134.3 million, driven both by France and international businesses.
• Revenue per buyer increased by 3% over the third quarter, while the number of orders per buyer increased by 2.7%; the average basket size remained stable, and the number of buyers rose by 16.1%, which demonstrates the increasing engagement of the Group’s members.

Strong international growth momentum:

• The excellent international like-for-like growth momentum was confirmed this quarter.
• International growth will be boosted by a major and innovative advertising campaign in Spain, Italy, Portugal, and Belgium in Q4.

Rapid implementation of the strategic partnership’s joint operations with Steinhoff and Conforama:

• First operations were implemented successfully in the third quarter, and marked the ability of Showroomprivé and Conforama teams to link up their logistics and commercial resources enabling expected synergies and operating optimisation measures to emerge quickly.
• Click & Collect: Conforama and Showroomprivé have announced the roll-out of Showroomprivé Click & Collect points in 11 Conforama stores in France, the launch of which has been successful.
• Other initiatives planned over the quarter: Shop It operation, and the first piggyback mailing campaign.

GROUP’S 2017 TARGETS

• The in-depth strategic transformation initiated by Showroomprivé, together with the investments made by the Group in order to increase its business volumes and reinforce its positions, the effects of which will be decisive for achieving its long-term growth and margin targets, is weighting on margins in the short term.
• In addition, Showroomprivé must factor in the higher than expected one-off increase in logistics costs relating to an increase in inventory purchases made in the first half of the year which are weighting negatively on yearly cost structure and cash generation.
• In this context, Showroomprivé has reviewed all of its 2017 objectives. The Group now expects its revenues objective to be c.€690 million (growth of c.+28%) and its EBITDA objective (excluding Saldi Privati) to be c.€25 million (i.e. an EBITDA margin of c.4%).
• The Group’s objectives for 2020 remain unchanged.
  • Net revenues of c. €1.1 billion by 2020,
  • EBITDA margin exceeding 7.5%,
  • Ratio of cash flows from operating activities to EBITDA higher than 100%.

At its meeting on 24 October 2017, the SRP Group’s Board of Directors reviewed and approved the revenue for the third quarter of 2017.