Showroomprivé: Q1 revenues drop by 22.1 percent

The Showroomprivé (SRP Group) net revenue for the first quarter stood at 138.9 million euros, down 22.1 percent from the same period last year.

This development, the company said, reflects the challenging environment in which the group has been operating since H2 2021: a supply shortage directly impacting the performance of several market segments, combined with a high comparison basis from Q1 2021, which was buoyed by restrictions related to the health crisis.

Commenting on the Q1 results, David Dayan, co-founder, chairman and CEO of Showroomprivé, said in a release: “In line with the trends of the second half of 2021, the anticipated contraction in early 2022 reflects a persistently challenging market environment. We are focusing on our diversification and premiumisation effort, as the acquisition of The Bradery testifies, with the prospect of an upswing of the activity by year’s end. We expect 2022 EBITDA to be satisfactory given the improvements in our business model despite not reaching the record level of 2020 and 2021.”

Highlights of Showroomprivé’s Q1 results

Net revenue for the current period was up 17.5 percent compared to Q1 2020, a period before the pandemic, which saw revenue of 118.2 million euros. Revenue for Beauté Privée dropped sharply compared to Q1 2021, owing to the migration of the platform as well as the current market repositioning, which is yet to be completed.

Internet sales in France were 113.4 million euros, down 22.9 percent compared to the same period in 2021, but were 17.1 percent higher than the 96.8 million euros recorded in Q1 2020. The Travel segment, and to a lesser extent the ticketing business, performed well but without fully offsetting the steep decline in the fashion and beauty segments. The Home segment proved more resilient. Following a strong start to the year, IRL brand saw mixed results over the quarter.

Internationally, revenue followed a similar trajectory to France, standing at 23.6 million euros, a 20 percent decline. Saldi Privati mirrored the performance of Showroomprivé over the period. Only Spain and Morocco saw a less pronounced drop in sales.

Wholesale revenue was up very slightly at 1.9 million euros. GMV was 203.6 million euros, down 18.8 percent compared to Q1 2021.

The group anticipates stronger business momentum in the second half of the year, due to a less demanding comparison basis as well as an expected increase in available inventory in certain sectors, a rebound in orders, and a steady upswing in the travel and ticketing activity. The group expects an acceptable 2022 EBITDA thanks to the improvements in the business model despite not reaching the record level of 2020 and 2021.