The Düsseldorf online retailer Fashionette AG was able to increase its sales in the 2022 financial year, but had to accept a higher loss. This emerges from preliminary figures published by the company on Friday. These essentially corresponded to the results that Fashionette had already announced in advance in an interim report at the beginning of February. In addition, the e-commerce specialist now gave an initial outlook for the current year.
In the most recent financial year, sales amounted to EUR 164.8 million, exceeding the 2021 level by 23 percent. On a pro forma basis – i.e. taking into account all of the previous year’s sales of the Dutch retail platform Brandfield, which Fashionette took over in summer 2021 – sales grew by seven percent.
For 2023, Fashionette forecasts an improvement in earnings
Management again admitted that it was unable to meet its revenue target for the past year due to the adverse economic environment. This led to “corresponding effects on the gross margin and the cost structure”. In addition, “when expanding the range, such as in the beauty area, the expected success was not achieved”. Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects shrank from 4.4 to 0.4 million euros. The net loss, which was 1.7 million euros in the previous year, grew to 6.3 million euros according to the available figures.
For 2023, the management now expects sales growth of five to eight percent. In addition, it expects a “significant improvement in profitability” as a result of the savings measures that have been introduced. For example, the areas of beauty and smartwatches have now been abandoned. The company explained that EBITDA adjusted for special effects is therefore expected to increase to two to three million euros.
The online retailer is now focusing on a strategic reorientation
The e-commerce specialist also confirmed its strategic reorientation, which was announced after the change in management that took place at the beginning of March. In the future, the company is now focusing on a platform model for luxury fashion.
Dominik Benner, who has been CEO of the company for a few weeks, explained the plans: “Fashionette was created in the luxury handbag sector. Over the past few years, shoes, sunglasses and jewelry have been added to the luxury range,” he said in a statement. “However, the largest market is the market for luxury fashion, which the fashionette has not yet served, although it is the largest market of all ranges (shoes, bags, sunglasses, accessories).” That is why the company management made the decision in April , “to enter the luxury fashion market,” says Benner. “This entry takes place exclusively as a platform approach, which means that instead of having our own warehouse, we are relying exclusively on partners (luxury retailers and luxury manufacturers) that we will connect to our platform.”