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SRP Groupe

Earnings Release Mar 13, 2025

1661_iss_2025-03-13_39b60051-66d4-4267-808b-c467deac3420.pdf

Earnings Release

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2024 ANNUAL RESULTS

SHOWROOMPRIVÉ ACHIEVES A GROSS MERCHANDISE VALUE OF 1 BILLION EUROS FOR THE SECOND YEAR IN A ROW AND MAINTAINS A POSITIVE EBITDA IN A DIFFICULT MARKET

  • Gross Merchandise Volume (GMV)1 is stable in 2024, once again reaching 1 billion euros
  • 2024 Revenue close to 650 million euros in a pivotal year in the transformation planned under the ACE roadmap
  • The growth drivers 2 performed well, partially offsetting a "core business" activity where gradual redynamism work is underway
  • EBITDA remains positive at +€2.3 million despite investments in logistics, marketing and prices
  • The net result stands at around -€40 million, due to exceptional items mainly related to a revaluation of the acquisition debt of The Bradery; excluding this effect, it would be -€17 million
  • Optimization of cash flow thanks to proactive inventory management, which has led to a favorable change in working capital requirements Outlooks: difficult economic situation at the beginning of the financial year, initiation of new actions to

La Plaine Saint Denis, France, Mars 13th , 2025 – Showroomprivé (SRP Groupe), a European group specializing in flash sales, publishes its results for the financial year ended December 31, 2024, as approved by the Board of Directors on March 13th, 2025.

David Dayan, Chairman and CEO of Showroomprivé, said: "In a turbulent global economic environment throughout 2024, our group has shown resilience, recording a GMV of almost one billion euros for the second consecutive year, and by taking several key steps in the deployment of our ACE strategic roadmap. Thanks to the commitment of our teams, we have initiated our commercial overhaul, launched our marketplace in our international countries, invested in our digital platforms to streamline the experience offered, developed our growth drivers and continued the integration of The Bradery. All these initiatives will enable us to improve our operational efficiency for our customers. While the economic situation at the beginning of 2025 remains difficult and is impacting our core business, we are continuing our efforts to accelerate our transformation and successfully execute our strategy while maintaining disciplined cost management. We remain determined and confident in our ability to grow the company with agility and innovation, and to strengthen the desirability and premiumization of our brand."

revitalize the core business

1 Gross merchandise volume (GMV) represents, all taxes included, the total amount of the invoiced transaction and therefore includes gross Internet sales, including sales on the Marketplace, other services and other income.

2 Travel & Leisure, Marketplace, The Bradery and International.

SHOWROOMPRIVÉ REACHES ONE BILLION EUROS IN REVENUE AND POSITIVE EBITDA

Key figures 2024 3

(in millions
of
€)
2023 2024 Change
%
GMV 1,004.7 999.2 -0.5%
Net Revenues 677.2 646.5 -4.5%
Total Internet Revenues 665.2 636.8 -4.3%
Of which International 129.0 142.2 +10.2%
Gross margin 258.8 238.0 -8.0%
Gross margin as a % of Revenue 38.2% 36.8% -140Bps
Operating expenses 250.7 252.0 0.5%
As a % of Revenue 37.0% 39.0% +195Bps
EBITDA 23.6 2.3 -90.4%
Operating profit before non-recurring
items
8.1 -13.9 n.m
Other operating income and expenses -7.0 -22.2 n.m
Operating income 1.2 -36.1 n.m
Cost of Financial debt -1.9 -2.1 n.m
Profit
before tax
1.0 -37.3 n.m
Profit tax -0.5 -2.4 n.m
Net Profit 0.5 -39.7 n.m

In 2024, Showroomprivé's gross merchandise volume (GMV) remained close to one billion euros at 999.2 million euros, down slightly by -0.5% compared to the 2023 financial year, in an online commerce market where the recovery has been hampered by political uncertainties and increasing competition with the development of ultra fast fashion platforms in France. Revenue for 2024 amounted to €646.5 million, down -4.5%, the confirmed positive trend of the growth drivers did not fully offset the impact of the sluggish economy and the decline in traffic.

As a continuum of the last semesters trend, the evolution is different between the core business, which suffered from a deteriorated context with a stagnating market in Fashion and a 2% drop in the House's goods4 segment, and the growth drivers which, like The Bradery, Marketplace and Travel & leisure segment that have outperformed and continue to grow their share in the portfolio of activities to represent more than 22% of the Group's total GMV.

Faced with this situation, Showroomprivé set about redynamising its core business by investing in its pricing policy to meet the expectations of its customers. This choice enabled the Group to resume sustained commercial conquest during Black Friday week, to preserve its market share while purifying old stocks. However, these strong decisions weighed on the gross margin achieved during the year, resulting in a zero contribution of sales in the second half of the year to profitability. 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 and leading to a positive EBITDA of €2.3 million in 2024.

After depreciation, amortization and provisions, the operating result before non-current expenses stands at -13.9 million euros.

3 Audit procedures over 2024 consolidated accounts have been performed. The certification report will be issued by the board of Directors on 13th march 2025 as it defines the project of resolution

4 Source : Fevad, Review of e-commerce in France in 2024

Other operating income and expenses amounted to €22.2 million, strongly impacted by the revaluation of a share of the future acquisition debt, prorata temporis, relating to the shares of The Bradery company owned by minority shareholders.

The cost of financial debt increased to -€2.1 million in a context of rising interest rates. The Group recorded a tax expense of -€2.4 million.

After taking these exceptional items into account, the Group's net result was strongly negative at -€39.7 million.

Cash flow from operations amounted to €12.1 million in 2024, compared with €10.2 million in 2023, with the impact of the decline in earnings mitigated by a favorable change in working capital requirements thanks to proactive inventory management. Taking into account the significant investments made as part of the transformation, the deployment of the ACE roadmap and the repayment of financial debt, the change in cash flow amounted to -€24.5 million over the financial year, bringing available cash to €46 million. The Group maintains a positive net cash position of €9.3 million and equity stands at €162.8 million.

THE GROUP'S SUCCESSFUL DIVERSIFICATION HAS MITIGATED THE DECLINE OF THE CORE BUSINESS

The core activity around sales events at Showroomprié shows a decrease of -8% due to several adverse factors:

  • A consumption that is slow to recover in Fashion and that has been poorly oriented in the Home segment;
  • The disappearance of certain brands, which has affected the variety of the offer available on the platform;
  • Internet traffic, which fell sharply in the first quarter and continued to decline throughout the year, despite a more favorable trend at the end of the year.

Faced with this situation, Showroomprivé has benefited from the work made in recent years to compensate for the cyclical nature of its historical business. The group has developed new verticals, addressed Millennial customers through a successful external growth operation, created a Marketplace to sell the offerings of certain partners, diversified its sources of income and internationalized its activity.

  • The Bradery, posted another year of strong growth in 2024, up 41% compared with 2023, with a notable acceleration in the number of sales (up 62%) and an increase in the average basket size. This performance is fueled by the growing reputation of the site and the doubling of the number of partner brands, an acceleration made possible in part by its merger with Showroomprivé.
  • The Marketplace saw its GMV increase by 56% to reach 52 million euros as of December 31, 2024. Numerous premium partners, carefully selected, have joined the platform. In the last quarter, the Group launched the Marketplace internationally. Belgium and Spain were the first countries to be opened, preceding the launch in Portugal, which will take place in the first half of 2025. Finally, several successful initiatives have accelerated the transition to a catalog model thanks to better exposure of Marketplace products, with, for example, the implementation of a new, more efficient search bar and a homepage that facilitates navigation by vertical.
  • The Travel and Leisure segment continues to develop, with a GMV up by 16%, as a result of a good commercial performance, driven by the solidity of the relationships built with suppliers, the success of packaged offers (train/hotel/event) and notable improvements in terms of UX and UI.
  • International is up by almost 10%, with increased penetration of all the different markets.

Key Performance Indicators (KPIs)

2023 2024 Change %
New buyers* (in millions) 1.1 1.0 -4.0%
Buyers** (in millions) 4.0 3.9 -2.2%
Of which Loyal Buyers*** 2.7 2.6 -4.1%
In % of total number of buyers Excluding
Marketplace
68% 67% -120Bps
Number of orders (in millions) 12.6 12.1 -4.3%
Revenue per buyer (IFRS) 251.9 256.9 +2.0%
Average number of Orders per buyer 3.2 3.1 -2.1%
Average Basket size 79.5 82.8 +4.2%

* New buyers over the period

** Member who has placed at least one order during the year

*** Members who have placed at least one order during the year and at least one order in previous years

The key indicators for 2024 have now been consolidated, integrating all of the Group's platforms, and calculated on the basis of Gross Merchandise Volume instead of net revenue in order to reflect the growing importance of the Marketplace and the Travel and Leisure segment in the business mix. The number of new buyers remains more or less stable at 1 million. However, there were slightly fewer active buyers than last year (2.2%), while the rate of loyal customers remaining at 67%.

The economic context weighed on the number of orders, which fell by 4.3%, a decrease slightly mitigated by a GMV per buyer that increased by 2.0%, these two figures reflecting the proactive choice to focus primarily on reactivating members. Despite sluggish consumption, Showroomprivé managed to increase the size of the average shopping basket to a record level of 82.8 euros (+4.2%), illustrating the success of its strategy of moving upmarket.

Finally, the Group maintained a good level of customer satisfaction during the period, with a NPS of 53% (stable vs. 2023) on Showroomprivé.

2025 OUTLOOK: IN THE FACE OF A DIFFICULT ECONOMIC CLIMATE AT THE BEGINNING OF THE YEAR, THE GROUP HAS IMPLEMENTED INITIAL MEASURES AND IS STUDYING NEW ACTIONS TO REDYNAMIZE ITS CORE BUSINESS

According to Fevad, 2025 set off with great uncertainties and a mixed state of mind among consumers. With a challenging start of the year in its core business, Showroomprivé has already implemented several redynamism measures, in line with the philosophy of its ACE plan, which will generate more significant effects as the financial year progresses:

  • Focus on the recovery of traffic by the marketing team;
  • Simplification of the processes in its core business, renewing offers and accelerating their rotation on the platform;
  • Launch of a permanent sales offer;
  • Strengthening of the team with the promotion of Julien Habib as the new sales director of the Fashion division, with the mission of deepening the deployment of the ACE roadmap;
  • Renewal of the management team for the Home segment, which has already instilled a change in mindset, reflected in better figures at the end of the year.

This work has been extended to the SRP Services center and Beauté Privée:

• At Showroom Media, the arrival of Élise Ophèle, the new Director since October 2024, has already provided a new impetus, enabling a turnaround. At the same time, SRP Studio has been renamed Show Up and has adopted a new graphic charter to illustrate the expansion of its solutions for partner brands. Artificial Intelligence is given a prominent place, particularly in the production of audiovisual content, with a solution that has won a "Top AI Award";

• At Beauté Privée, the value proposition has been redefined ahead of the migration to Shopify, which will take place in the first half of the year.

The Group will also reap the benefits of the progress made under the ACE roadmap, such as the commissioning of the new warehouse, which will save up to 5 million euros from 2025 and 7 million euros on a full-year basis, to which will be added additional savings linked to the reduction of inter-site transportation costs.

However, in order to return to a profitable growth trajectory for its core business, the Group is considering additional measures after several quarters of performance below its standards. While maintaining the main principles of the plan, namely upgrading the platforms through a renewed offering, an enriched user experience and reduced delivery times, Showroomprivé will work on ways to accelerate their implementation.

In the medium term, Showroomprivé is staying on course with its strategic plan, the philosophy of which is to provide solutions that meet its customers' need while removing the obstacles to their commitment. To do this, it will intensify its action on each of the three levers of the plan: working on its offer (Adapt), optimising its structure (Consolidate) and developing growth drivers (Expand). It will thus work more smarter, better and faster in order to achieve the following operational objectives by 31 December 2026, which are detailed as follows:

For the Adapt part:

  • Carry out a Transformation with the aim of increasing the transformation rate by 7.5% through continuous improvements of the UX and UI, better consumers targeting and a greater offer selectivity;
  • Offering a personalised experience with the aim of increasing the GMV per buyer by 10% on the Showroomprivé platform, based on a personalized homepage for each user, presenting a selection of sales and then products adapted to their profile;
  • Expand the portfolio of partners with the aim of recruiting 10% new brands by accelerating prospecting with a renewed team, optimised planning and automated tools.

For the Consolidate part:

  • Reduce delivery times with the aim of a reduction in the average delivery time to 8.5 days on average by optimising the mix of sales channels, centralising flows in its new warehouse (Batiment F) and making the latter ever more efficient;
  • Improve the user experience with the aim of exceeding the 55-point Net Promoter Score by deploying AI-enhanced tools such as chatbots, implementing a loyalty program and strengthening the after-sales service;
  • Modernising IT architecture: with the aim of reducing technical debt and making the system more flexible while limiting IT expenditure.

For the Expand part:

  • Develop the Marketplace and the Travel and Leisure division with the aim of together reaching 20% of the GMV by pursuing commercial development in particular and by penetrating new markets and remaining attentive to new opportunities.
  • Expand the retail media and the monetization of data with the aim of to increase the segments'revenue by a factor of 3 to 5 by capitalising on its position as the leader in France in the Fashion division, by positioning itself as a key player in brand traffic with agencies and by developing a self-service data offering
  • Intensify the international presence with the aim of achieving sales outside France that exceed 25% of the GMV thanks notably to the acceleration of the Marketplace and the launch of the Travel and Leisure and retail media offers beyond France.

With regard to its other platforms, Showroomprivé will give a new boost to Beauté Privée by capitalizing on its migration to Shopify and has set a target of 15% new brands and a doubling of the members of its community. For its subsidiary The Bradery, the Group intends to make it the leader in flash sales in France in the premium segment, begin its deployment in the provinces and enter it into the luxury market. On the strength of these developments, The Bradery aims to exceed a revenue of 100 million euros in France, representing growth of 500% since its acquisition in 2022.

FORTHCOMING INFORMATIONS/UPCOMING NEWS

1 st quarter 2025 results: April 30, 2025

FORWARD-LOOKING STATEMENTS

This press release contains only summary information and is not intended to be comprehensive.

This press release may contain forward-looking information and statements about the Group and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "goal" or similar expressions. Although the Group believes that the expectations reflected in such forward-looking statements are reasonable, investors and the Group's shareholders are advised that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Group, which could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in filings with the Autorité des Marchés Financiers (France's financial markets authority) made or to be made by the Group (particularly those detailed in Chapter 4 of the Company's registration document). The Group makes no commitment to publicly update its forward-looking statements, whether as a result of new information, future events or otherwise.

ABOUT SHOWROOMPRIVE

Showroomprivé is an innovative European player in the online private sales industry, specialized in fashion. Showroomprivé offers a daily selection of more than 3,000 brand partners via its mobile apps or website in France and six other countries. Since its launch in 2006, the company has enjoyed quick growth.

Listed on the Euronext Paris market (code : SRP), Showroomprivé achieved a GMV VAT5 of almost 1 billion euros in 2024, and a net revenue of 650 million euros. The Group is headed by co-founder David Dayan and employs more than 1,100 people.

For more information: http://showroomprivegroup.com

CONTACTS DETAILS

Showroomprivé NewCap

Sylvie Chan Diaz, Investor Relations [email protected]

Anthony Alfont Relations[email protected]

Financial communication Théo Martin, Louis-Victor Delouvrier

Financial media relations Gaelle Fromaigeat, Nicolas Merigeau [email protected]

4 Gross merchandise volume (GMV) represents the total invoiced transaction amount including all taxes and therefore includes gross Internet sales, including sales o the Marketplace, other services and other income.

APPENDICES

INCOME STATEMENT

(thousands €) 2023 2024 Change %
Net Revenue 677,164 646,456 -4.5%
Cost of Gods Sold -418,317 -408,431 -2.4%
Gross Margin 258,847 238,025 -8.0%
Gross Margin % of Net Sales 38.2% 36.8% -140Bps
Marketing1 -27,721 -27,776 +0.1%
% of Net Revenue 4.1% 4.3% +20Bps
Logistics and Order Processing -152,029 -148,729 -2.2%
% of Net Revenue 22.5% 23.0% +50Bps
General and Administrative Expenses -70,956 -75,454 +4.8%
% of Net Revenue 10.5% 11.7% +120Bps
Total Operating Expenses -250,706 -251,959 +0.5%
% of Net Revenue 37.0% 39.0% +195Bps
Operating Profit before Tax 8,140 -13,934
Other Operating Income and Expenses -6,958 -22,209
Operating Profit 1,182 -36,143
Financial Interest Expense -1,903 -2,083
Other Financial Income and Expenses 1,710 959
Profit before Tax 989 -37,267
Income Tax Expense -497 -2,422
Net Profit 492 -39,689
EBITDA 23,627 2,274
EBITDA % Net Revenue 3.5% 0.4%

1 In accordance with the recommendations of the AMF (Autorité des Marchés Financiers), the amortization of intangible assets recognized in connection with a business combination is presented within "operating profit before tax" under marketing expenses.

PERFORMANCE INDICATOR

2023 2024 Change %
CUSTOMER INDICATORS
New Buyers (in thousands) 1,073 1,030 -4.0%
France 867 816 -5.9%
International 206 214 4.1%
Buyers (in thousands) 3,979 3,890 -2.2%
France 3,309 3,186 -3.7%
International 670 704 5.1%
GMV per Buyer (€) 252 257 +2.0%
France 248 251 1.2%
International 271 283 4.6%
Number of Orders (in thousands) 12,611 12,072 -4.3%
France 9,881 9,120 -7.7%
International 2,731 2,952 8.1%
Average Number of Orders per Buyer 3.2 3.1 -2.1%
France 3.0 2.9 -4.1%
International 4.1 4.2 2.8%
Average Basket Size (€) 79.5 82.8 +4.2%
France 83.1 87.7 5.6%
International 66.5 67.6 1.7%

BALANCE SHEET

(€ thousands) 12/31/2023 12/31/2024
NON-CURRENT ASSETS
Goodwill 129,912 129,912
Other Intangible Assets 53,184 54,477
Property, Plant, and Equipment 24,729 40,801
Other Non-Current Assets 6,660 6,010
Total Non-Current Assets 214,485 231,200
CURRENT ASSETS
Inventory and amount outstanding 89,921 73,199
Accounts Receivable and Related Accounts 25,546 25,128
Tax Receivables 668 453
Other Current Assets 31,730 27,018
Cash and Cash Equivalents 70,574 46,043
Total Current Assets 218,439 171,841
Total Assets 432,924 403,042
Loans and Financial Liabilities 26,692 23,945
Employee Commitments 874 1,078
Other Provisions 388 385
Deferred Taxes - -
Other long-term liabilities - 5,972
Total Non-Current Liabilities 27,954 31,380
Loans and Bank Overdrafts (due within one year) 15,656 12,832
Suppliers and Related Accounts 136,020 127,188
Other Current Liabilities 50,486 68,801
Total Current Liabilities 202,161 208,821
Total Liabilities 230,115 240,201
Total Equity 202,807 162,841
Total Liabilities and Equity 432,924 403,042

CASH FLOW

(€ thousands) 2023 2024
Consolidated Net Profit 492 -39,689
Adjustments and Others 14,589 15,663
Cash Flow from Operations after Net Financial Cost and Tax 15,081 -24,026
Elimination of Tax Expense (Income) 497 2,422
Elimination of Net Financial Cost 1,900 2,028
Impact of Changes in Working Capital Requirement -9,374 34,128
Cash Flow from Operating Activities before Tax 8,104 14,552
Taxes Paid 2,339 -314
Cash Flow from Operating Activities 10,443 14,238
Impact of Changes in Scope - -20
Acquisition of Property, Plant, and Equipment -9,020 -22,852
Acquisition /(Sale) of financial participations -100 -
Change in Loans and Advances Granted -310 144
Disposal of Property, Plant, and Equipment 242 -
Cash Flow from Investing Activities 1,710 45
Cash flow from investing activities -7,478 -22,683
Increase in Share Capital - -
Net Purchase (Sale) of Treasury Shares -446 -174
Issuance of Bonds - -
Repayment of Bonds -13,519 -13,911
Net Financial Interest Paid and Others -1,901 -2,027
Cash Flow from Financing Activities -15,865 -16,112
Impact of Exchange Rate Variation -4 26
Change in Cash Position -12,904 -24,531

EBITDA RECONCILIATION

(€ thousands) 2023 2024
Net Profit 492 -39,689
Amortization of Intangible Assets Recognized in Business Combinations 1,617 459
Amortization and Depreciation of Fixed Assets 13,869 15,749
Including amortization in Logistics and Order Processing 4,305 4,959
Including amortization in General and Administrative Expenses 9,564 10,790
Other Financial Income Expenses 5,248 21,250
Financial Interest Expense 1,903 2,083
Income Tax Expense 497 2,422
EBITDA 23,627 2,274

GMV RECONCILIATION

(€ thousands) 2023 2024
Gross Internet Sales 965,543 965,310
VAT (Value Added Tax) -166,956 -158,695
Impact on Revenue Recognition -160,581 -194,007
Non-Internet & Other Sales 39,158 33,851
Net Revenue under IFRS 677,164 646,459
(€ thousands) 2023 2024
Gross Internet Sales 965,543 965,310
Other Services and Other Revenues 39,158 33,851
Gross Merchandise Volume 1,004,702 999,161

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