fashionette AG reports strong sales growth of +21.6% and positive operating cash flow of EUR 1.1 million in third quarter of 2022
 

• Net revenue in third quarter of 2022 rises by +21.6% to EUR 38.6 million
• Net revenue for the first nine months of 2022 increases by +38.9% to EUR 112.0 million and thus exceeds the EUR 100 million mark for the first time in the company’s history – corresponds to pro forma revenue growth of +15.4% 
• Strong operating cash flow of EUR 1.1 million in the third quarter compared to EUR -6.0 million in the same quarter of the previous year
• Outlook for 2022: expected net revenue of EUR 165 million to EUR 175 million corresponds to +23% to +31% year-on-year growth on a consolidated basis and +7% to +13% year-on-year growth on a pro forma basis; expected adjusted EBITDA of EUR 1 million to EUR 4 million
•  

Dusseldorf, 15 November 2022. fashionette AG (ISIN DE000A2QEFA1 / WKN A2QEFA), a leading European data-driven e-commerce group for premium and luxury fashion accessories, achieved significant growth in net revenue in the third quarter of 2022 despite a challenging economic environment.

In the third quarter of 2022, net revenue increased by +21.6% to EUR 38.6 million compared to the same quarter of the previous year (Q3 2021: EUR 31.8 million).

In the first nine months of 2022, net revenue on a consolidated basis increased by +38.9% to EUR 112.0 million (9M 2021: EUR 80.7 million) compared to the same period of the previous year. Including Brandfield in the nine-month period of the previous year, net revenue rose by 15.4% (on a pro forma basis).

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), mainly adjusted for one-time consulting costs, expenses not attributable to operating activities and write-downs of disclosed hidden reserves in inventories, amounted to EUR -0.5 million in the third quarter of 2022 (Q3 2021: EUR -0.1 million). Adjusted EBITDA for the first nine months of 2022 decreased to EUR 0.0 million (9M 2021: EUR 0.4 million), mainly due to external macroeconomic influences, especially increased inflation and the Ukraine crisis.

Strong operating cash flow of EUR 1.1 million was generated in the third quarter of 2022, thanks to working capital optimizations (Q3 2021: EUR -6.6 million). Operating cash flow in the first nine months of 2022 improved to EUR -6.0 million (9M 2021: EUR -15.6 million), mainly due to the build-up of working capital.

The Group’s freely available liquidity at the end of September 2022 amounted to EUR 9.5 million (end of September 2021: EUR 8.8 million) and inventories to EUR 46.2 million (end of September 2021: EUR 45.5 million).

The number of new customers rose by 40.7 thousand to 520.7 thousand in the first nine months of 2022 (9M 2021: 480.0 thousand on a pro forma basis). The number of active customers increased by around 16% to 1.06 million over the year.

Outlook for 2022:

After customer demand in the current fourth quarter of 2022 has fallen short of the original expectations due to restrained consumer behavior, as already reported, the Management Board now expects net revenue of EUR 165 million to EUR 175 million for fiscal year 2022 (previously: EUR 180 million to EUR 187 million), corresponding to growth of approx. +7% to +13% on a pro forma basis (previously: 16% to 21%) or of approx. +23% to +31% on a consolidated basis (previously: 34% to 40%), and adjusted EBITDA of EUR 1 million to EUR 4 million (previously: EUR 5 million to EUR 7.5 million).

Georg Hesse, CEO of fashionette AG:

“We are very proud that we were able to grow organically by more than 21% in the third quarter, despite the challenging consumer environment, and at the same time generate positive operating cash flow. This proves that, especially in times of increasing uncertainty among customers, the fundamental trend towards online shopping for premium and luxury fashion accessories continues. However, customer demand at the beginning of the fourth quarter remained below our initial expectations. At the same time, the oversupply of goods by some competitors in the current year-end business is leading to unusually high discounts, which are currently having a negative impact on our gross margin. Due to the already difficult macroeconomic environment, we therefore adjusted our forecast for the full year 2022 last week. In the months to come, the focus will now be on strengthening our resilience and maintaining a high level of cost discipline. In addition, we will further optimize the level of our inventory. Our stable liquidity situation gives us the security and the necessary scope to nevertheless continue to drive our long-term growth initiatives, by strengthening our premium private labels, for example. We expect a turnaround in the gross margin next year.”

NON-FINANCIAL PERFORMANCE INDICATORS (UNAUDITED) 

 
FINANCIAL PERFORMANCE INDICATORS (UNAUDITED)

WEBCAST

This publication contains forward-looking statements. These statements are based on the current views, expectations and assumptions of fashionette AG’s management and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied by such statements. Actual results, performance or events may differ materially from those described herein as a result of factors affecting the company, such as changes in general economic conditions and the competitive environment, capital market risks, foreign exchange rate fluctuations and competition from other companies, as well as changes in international and national laws and regulations, particularly with respect to tax laws and regulations. The company assumes no obligation to update forward-looking statements.

This publication contains supplemental financial measures (not specifically identified in relevant accounting frameworks) that are, or may be, so-called alternative performance measures. For the purpose of assessing fashionette’s financial condition and results of operations, these supplemental financial measures should not be considered in isolation or as an alternative to the financial measures presented in the consolidated financial statements and determined in accordance with relevant accounting frameworks. Other entities that present or report alternative performance measures with a similar title may calculate them differently. Explanations of financial ratios used can be found in the fashionette AG Annual Report 2021, which is available at https://ir.fashionette.com/.

Remark:

These figures are unaudited and comply with the IFRS standard. Adjusted EBITDA excludes extraordinary expenses and expenses for share-based payments. Rounding differences can occur.

Detailed financial information:

Please register for all investor relations mailings here to make sure you don’t miss any publications or news from fashionette AG.

About fashionette AG:

fashionette AG is a leading European data-driven e-commerce group for premium and luxury fashion accessories based in Düsseldorf, Germany. With its online platforms fashionette.com and brandfield.com, the fashionette group offers not only inspiration, but a curated assortment of premium and luxury handbags, shoes, small leather goods, sunglasses, watches, jewelry and beauty products from more than 350 brands, including own brands. Reinforcing more than ten years of fashion accessory experience, fashionette AG developed a compelling proprietary IT and data platform using cutting-edge technology and artificial intelligence to make personalized online shopping of premium and luxury fashion accessories available to all women in Europe. For more information about fashionette AG, please visit corporate.fashionette.com or the online platforms www.fashionette.com and www.brandfield.com.

Contacts:

Investor Relations
Armin Blohmann
a.blohmann@fashionette.com
Lierenfelder Straße 45 | 40231 Dusseldorf | Germany

corporate.fashionette.com

Public Relations
Stefanie Küppenbender
presse@fashionette.de
Lierenfelder Straße 45 | 40231 Dusseldorf | Germany

corporate.fashionette.com