Thanks to the austerity program: Fashionette raises its earnings forecast

The Düsseldorf online retailer Fashionette AG presented preliminary figures for the first half of the 2023 financial year in an ad hoc announcement on Friday and increased its earnings forecast.

The company, which is about to merge with the e-commerce group The Platform Group, achieved sales of EUR 62.0 million in the first six months of the current year. This corresponded to a decline of almost 16 percent compared to the same period of the previous year. “As a result of the concentration on products with higher margins and the closure of the beauty and smartwatches divisions,” the losses were expected, the online retailer explained.

By contrast, earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects increased from EUR 0.5 to 1.5 million. In view of the latest development, management has raised its annual guidance for adjusted EBITDA to five to six million euros from two to three million euros. “The background to this is faster implementation of the cost-cutting and efficiency program that has been initiated, with the corresponding positive effects on earnings development,” explained Fashionette.

The sales target for 2023 remained unchanged. An increase of five to eight percent compared to the previous year is therefore expected. The company is relying on the announced reform of its business model: “In particular, the start of the platform business for luxury fashion will contribute to significant sales growth from September,” said the e-commerce specialist. The sales in the fourth quarter are “always the strongest sales in the course of the fashionette”. The company intends to publish its full half-year report on August 21.

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