Answear.com with a 36% increase in revenue after three quarters of 2023
Answear.com, a leading e-commerce offering fashion, home & lifestyle and outdoor products in the CEE region, summarizes the third quarter of 2023. Despite the difficult market situation and slowdown in the economies of the region's countries, as well as the results being burdened with costs incurred by the PRM brand, the Company after three quarters recorded an increase in revenues by 36%. rdr. to the amount of PLN 830 million and net profit increased by 25%. y/y, which amounted to PLN 7 million. Answear.com, with its growth dynamics, remains one of the fastest growing e-commerce platforms in Europe in the fashion industry, effectively implementing strategic assumptions and continuing to build a leading position in the CEE region.
- We have a very demanding quarter behind us, in which our results were under the pressure of the difficult market situation and weakened consumer demand. Additionally, at the end of Q3 the weather was also not favorable to us. September was a record warm month in the markets where we operate, which of course had a negative impact on the sales of the fall collection. However, despite all these negative factors, Answear.com is still one of the fastest growing e-commerce platforms in Europe in the fashion industry, which confirms that we have a healthy and stable business - comments Krzysztof Bajołek, President of the Management Board of Answear.com.
After three quarters of 2023, Answear.com maintained its sales margin at 40.5%, which is proof of effective management and flexibility in its pricing strategy. It is worth emphasizing that the stable margin was maintained despite the reduced share of commission sales and the impact of the devaluation of the hryvnia on the Ukrainian market. After three quarters, Answear.com generated a cumulative EBITDA of PLN 38.5 million, which means an increase of 3%. rdr. At the level of purified EBITDA from the impact of one-off events and the valuation of the incentive program - in the amount of PLN 41.7 million, i.e. 5.0% of sales revenues.
- It is worth emphasizing that in the third quarter of this year our profitability was burdened by costs incurred by the PRM brand in connection with opening new markets, as well as one-off costs related to the acquisition. In the past quarter, PRM generated PLN 4.8 million of negative EBITDA. Despite the negative result and weaker economic situation in the third quarter, Answear.com achieved a positive EBITDA result of PLN 38.5 million after nine months, which proves the stable growth and effectiveness of the company's strategy - adds Jacek Dziaduś, Vice-President of the Management Board for Finance of Answear.com .
In Q3 2023, Answear.com continued its strategy of improving the offer and increasing the share of premium brands in sales, which at the end of the last quarter accounted for 59%. all brands in the offer, which is an increase from 55%. recorded a year earlier. This has a direct impact on the average order value, which increased to PLN 338.
After three quarters of this year new markets accounted for nearly 10 percent. sales. It is especially worth emphasizing the very good results on the Ukrainian market, where Answear.com, after resuming sales, quickly became a leader in the e-commerce fashion sector. The company was honored for the second year in a row with prestigious awards for the best online clothing store and the best multibrand store in 2023. In recent days, Answear.com announced its entry into the Italian market, this is the 12th market in which the Company operates and the first in the Western European region .