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Half year sales down at online home furnishings retailer

Online home furnishings platform home24 has reported a decline in second quarter and half year sales

According to its latest trading update, Q2 2022 sales were down 9% to €151.9m from €166.1m, while half year revenues were also down by 10% to €292.1m from €325.1m in 2021.

Adjusted EBITDA margin for the second quarter was positive at 1% but down from 2% against last year, while half year margin fell 2%.

The retailer saw order numbers fall 25% to 587 in Q2 and down again by 29% to 1.2k during the half year period.

The outlook for the full year 2022 is specified by home24 to now currency-adjusted revenue growth of -7% to +3%. Adjusted EBITDA margin is still expected to be in the range of +1% to +5% due to ‘disciplined marketing management and forward-looking cost management’.

Looking ahead, the curated marketplace launched in June 2022 is expected to provide further momentum. By adding the offerings of third-party vendors, home24 is expanding its range to around 250,000 items without building up additional inventory. Both the added marketplace and Butlers’ offerings primarily feature accessories and smaller-scale items that make home24 less dependent on the large furniture segment.

Marc Appelhoff, CEO, commented: “We achieved our profitability target in the second quarter – despite a year-on-year decline in sales. We managed this primarily through disciplined steering and adjusted marketing expenses, as even without the acquisition of Butlers our European business would have been adjusted EBITDA positive.

“In view of the continuing negative consumer sentiment in all our major markets, we remain focused on the strategic initiatives that we can control ourselves: We are continuing the integration of Butlers step by step and engaging our customers online and offline with offers for their homes that require lower spending. In addition, we are continuing to drive forward the expansion of the marketplace, which started off quite promisingly.

“At the same time, we are constantly improving the digital shopping experience and our service offering. This further strengthens our positioning as a reliable provider offering fast delivery times and attractive value for money, especially for our own brands.”

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