The clothing supplier Bonprix, which belongs to the Hamburg retail and service group Otto Group, had to accept a significant drop in sales in the 2022/23 financial year, which ended at the end of February. At 1.76 billion euros, sales were 9.3 percent below the previous year’s level, the company announced on Wednesday.
The retailer mainly blamed adverse conditions for the losses. “The company’s withdrawal from the Russian market, which led to considerable special charges and reduced the total turnover of the Bonprix Group by around three percent, played a significant role in this,” says a statement. In addition, “business in the home and core market of Germany is characterized by consumer restraint, which also led to a decline in sales”. At the beginning of the current financial year, however, there were “clear signs of recovery” in this country.
Richard Gottwald, CEO of Bonprix, expects conditions to remain challenging. “The macroeconomic situation remains volatile,” he said in a statement. “In the management of our international business model, we will meet these general conditions with a high degree of flexibility and resilience. At the same time, we are concentrating on our strategic digitization issues as a foundation for sustainable positive business development.”
The positive response to the company’s new branding also gives Gottwald hope. The changes made represent “an important strategic step for Bonprix”, he emphasized.