Aug 21, 2023 8:30 AM
/ Key word(s): Half Year Results/Half Year Report
fashionette increases earnings in the first half of 2023 and raises earnings forecast for the full year
The new Management of fashionette AG has been focusing on profitability since March 2023 and has implemented a comprehensive cost-cutting and efficiency program. In the process, the loss-making smartwatches and beauty business units were discontinued; in addition, material costs were reduced, marketing expenses were cut, and administrative costs were adjusted. In addition, the purchasing and pricing strategy was adjusted, the margin was significantly increased, low-priced products were removed from the assortment, and the share of high-priced products was increased.
As a result of these specific measures, an improvement in the operating earnings (adjusted EBITDA) was achieved in the first half of 2023 compared to the same period of the previous year: This increased from EUR 0.5 million in the same period of the previous year to EUR 1.5 million in the first six months of 2023. Likewise, operating cash flow improved from EUR -7.1 million in the first half of 2022 to EUR -3.8 million, the best figure in the past three years.
Revenues decreased from EUR 73.4 million to EUR 62.0 million, in line with expectations, following the focus on higher-margin products and the discontinuation of the beauty and smartwatches business units.
In light of the effects of the cost-cutting and efficiency program, fashionette increased its forecast for the operating result (adjusted EBITDA) from the previous EUR 2 to EUR 3 million to EUR 5 to EUR 6 million. fashionette continues to expect sales growth of between +5% and +8%. In particular, the launch of the platform business for luxury fashion will contribute to significant sales growth from September onwards. Revenues in the fourth quarter are also always the strongest revenues in the course of the year for fashionette.
Moreover, the Company expects to increase the number of new customers by 3% to 6% in 2023 (2022: +6%) and to grow the average basket of goods from EUR 176 in 2022 to at least EUR 200. In addition, fashionette AG expects to achieve a gross merchandise volume (GMV) of EUR 370.6 million.
The half-year results are unaudited.
fashionette AG is a leading European, data-driven e-commerce group for luxury fashion accessories. On the online platforms fashionette.com and brandfield.com, the fashionette group offers not only inspiration, but also a selected range of luxury fashion accessories, such as handbags, shoes, small leather goods, sunglasses, watches and jewellery from more than 300 brands, including own brands. Based on more than ten years of experience in the fashion accessories sector, fashionette AG has developed an innovative proprietary IT and data platform which, with the help of state-of-the-art technologies and artificial intelligence, enables customers throughout Europe to make personalised online purchases of luxury products. For more information on fashionette AG, please visit corporate.fashionette.com or the online platforms www.fashionette.com and www.brandfield.com.
21.08.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
|Lierenfelder Straße 45|
|Listed:||Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1707205|
|End of News||EQS News Service|
1707205 21.08.2023 CET/CEST