ShowroomPrivé, a prominent e-commerce platform, faced a significant setback in revenue during the first quarter of 2022. The company reported a drastic 22% drop to €138.9 million, which stands in stark contrast to the impressive 51% growth it experienced in the same period the previous year. However, despite this decline, ShowroomPrivé maintains a positive outlook and anticipates a recovery by the end of the year.
Throughout the January-March period, ShowroomPrivé recorded a turnover of €203.6 million and witnessed an 11.5% increase in average shopping baskets, which reached €49.8. Although the recovery of the travel and tourism industry helped offset the decline in other sectors like fashion and household appliances, the company faced challenges due to inventory shortages. Consequently, this led to reduced destocking needs for partner brands. Additionally, the migration of the platform negatively impacted the sales of Beauté Privée. On the flip side, the marketplace activity resulted in significantly larger shopping baskets compared to other sales models.
CEO David Dayan explains the decline in activity during the first quarter of 2022 as consistent with the second half of 2021, reflecting a challenging market environment. The industry continues to grapple with uncertainties surrounding inventories and disruptions in the supply chain in certain markets. Nevertheless, ShowroomPrivé remains optimistic about improvements in the second quarter, despite a decline in sales. Improved inventory availability is expected, and this positive trend is anticipated to continue in the latter half of the year.
In a bid to enhance its product offering, ShowroomPrivé recently made the strategic acquisition of The Bradery, an online sales platform. This move is set to contribute to the company’s growth and development. Currently, ShowroomPrivé boasts 1.2 million buyers, including one million loyal customers who have made purchases within the last two years.
Reflecting on the previous year, ShowroomPrivé achieved a 3.8% growth in revenue, amounting to €723.8 million. The turnover for the same year reached €922 million, indicating a 3.1% increase. Additionally, the company witnessed an increase in EBITDA, rising from €42 million in 2020 to €48.2 million. ShowroomPrivé successfully rebounded during the challenging pandemic period as confinement measures propelled online sales, resulting in a return to profitability.
Despite the sales decline in the first quarter of 2022, ShowroomPrivé remains determined to navigate the challenging market conditions and expects a rebound in the near future. With strategic acquisitions and a loyal customer base, the company is well-positioned for future growth and success.
Useful links:
1. [ShowroomPrivé website](https://www.showroomprivegroup.com/)
2. [The Bradery website](https://www.thebradery.com/)
