On Thursday, March 13, Showroomprivé (SRP Groupe) announced a net loss of nearly EUR 40 million for 2024, primarily due to a “a revaluation of the acquisition debt of The Bradery,” one of the group’s three platforms.
Showroomprivé, which reported a net profit of EUR 500,000 the previous year, stated that excluding this exceptional item, the net loss would have been EUR 17 million.
The group’s sales fell by 4.5% to 646.5 million euros.
The flash sales company operates three platforms: the generalist Showroomprivé.com, Beauté Privée, which specializes in beauty, and The Bradery, focused on fashion.
The group, however, emphasizes its sales volume, an indicator that takes into account all sales made on its websites, including by third-party sellers. This is virtually stable, approaching one billion euros in 2024.
“In an online commerce market where the recovery has been hampered by political uncertainties,” and where competition is increasing “with the development of ultra fast fashion platforms in France,” the “confirmed positive trend of the growth drivers did not fully offset the impact of the sluggish economy and the decline in traffic,” said the group in a release.
Faced with this situation, Showroomprivé set about “redynamising its core business by investing in its pricing policy to meet the expectations of its customers.” The group said this choice contributed “to resume sustained commercial conquest during Black Friday week, to preserve its market share while purifying old stocks.”
However, these decisions weighed on the gross margin achieved during the year.
“At the same time, Showroomprivé continued to strictly control costs, with tight management of its marketing budget and structural costs, despite inflation-related increases, keeping operating expenses relatively stable,” the company added.
As far as Beauté Privée is concerned, the value proposition has been redefined ahead of the migration to Shopify, which is scheduled to take place in the first half of the year, targeting 15% new brands and a doubling of the members of its community.
