Bonprix suffered a decline in sales in the first half of the 2023/24 financial year. The clothing supplier, which belongs to the Hamburg trading and services group Otto Group, cited the continuing “challenging” overall economic situation as the reason, Bonprix announced on Thursday.
Sales in the first six months were eight percent below those in the first half of the previous year. The Russian business is excluded from this, as the withdrawal from the market means a further reduction in sales of two percentage points. This means that the decline in sales compared to the previous year, including special charges, is ten percent.
“In many countries we continue to sense price sensitivity and purchasing reluctance among our customers due to the crisis and inflation,” summarizes Bonprix CFO Kai Heck.
In Europe, France and Italy as well as several markets in Eastern Europe were particularly affected by the difficult conditions. However, there were positive developments in Slovenia and Finland. But the situation in the US market is also difficult for the Venus brand, which is active there, which resulted in a double-digit decline in sales.
In the home market of Germany, however, the company was able to achieve positive revenues. The adapted market and supply strategy particularly paid off there, says Heck. Bonprix achieved a four percent increase in sales in Germany compared to the previous year. But the clothing supplier also achieved growth in the low single-digit range in the neighboring countries of Austria and Switzerland.
Outlook for the rest of the financial year
Looking ahead to the remainder of the current financial year, Bonprix continues to expect a challenging market environment. This trend is strengthened by an “unusually warm September” and correspondingly lower demand for seasonal clothing.
“The situation for online fashion retail remains tense, but we are operating on an extremely solid basis with our business model,” said Richard Gottwald, Chairman of the Bonprix Management Board. “I am therefore convinced that through flexible and efficient management of our international markets we will record positive developments despite this time of crisis.”
Bonprix wants to further advance digitalization. There is a particular focus on the product and the entire value chain. Among other things, the company wants to only work with 3D product design by 2025 and “almost” do without physical product samples, which should also save costs.