The Düsseldorf online retailer Fashionette AG presented preliminary results for the first quarter of the 2023 financial year on Wednesday. Accordingly, sales from the continued operations fell by eight percent to EUR 33.2 million compared to the same period of the previous year. The decline was “primarily due to the termination of the two business areas Beauty and Smartwatches,” the company explained.
The e-commerce specialist also reported an adjusted loss before interest, taxes, depreciation and amortization (EBITDA) of EUR 0.5 million. In the same quarter of the previous year, he had achieved a positive adjusted EBITDA of EUR 0.2 million.
CEO Dominik Benner saw the company on track with its reform plans: “The first quarter of 2023 marks the turnaround at Fashionette AG,” he said in a statement. “We have closed unprofitable business areas, reduced costs, improved cash flow and are clearly focusing on luxury.” The recently presented platform strategy will “move sales significantly from September 2023” and is “a milestone in the luxury segment”, says Benner.
Management stuck to its forecasts for the current year. A sales increase of five to eight percent is therefore expected for the continued business areas. The EBITDA adjusted for special effects should be in the range of 2.0 to 3.0 million euros. Due to the “initiated efficiency and cost reduction program”, the board expects “a significant improvement in profitability”, according to a statement.