Profits bounce back in 2023 “despite difficulties in the apparel sector”

The Showroomprivé group (SRP) announced on Thursday that its net profit bounced back in 2023, increasing by 54% to €500,000 as revenue grew too, “despite difficulties in the apparel sector.”

In 2022, the group’s net profit had fallen drastically, plunging by nearly 99% to €300,000, within a “tough market environment,” under pressure from numerous supply chain constraints and rising inflation.

SRP operates three websites: generalist e-tailer Showroomprivé.com, beauty specialist Beauté Privée, and The Bradery, which focuses on fashion.

In 2023, SRP generated a revenue of €677 million, up by 3% within a slumping e-tail market, according to the group.

SRP underlined that its business volume (all sales generated on its sites, including those by third-party vendors) grew by 6.3% to €1 billion, a record for the group, notably thanks to “growth drivers” like The Bradery.

The latter, an event sales site in which SRP acquired a majority stake in 2022, recorded a 76% sales increase in 2023, while sales for the Showroomprivé marketplace soared, growing by 85%.

Some product categories performed very well on Showroomprivé, such as sport & lifestyle (whose revenue increased by 66%) while others posted a downturn, like home decoration (down 26%) and fashion (down 5%).

Beauté Privée’s revenue down 6%

“This solid performance was achieved in an environment that remained tough due to a persistently high level of inflation weighing on household consumption, which is still under pressure, causing difficulties to many apparel brands,” said SRP.

In 2024, SRP intends to deploy “more targeted marketing initiatives” and to “intensify the pace of innovation,” notably via AI solutions.

In 2023, SRP was twice fined by France’s Directorate-General for Competition, Consumer Affairs and Prevention of Fraud (DGCCRF): a sanction of €1.3 million for “late payment” of its some of suppliers, and a second one of €600,000 for “misleading promotions.”