Online home furnishings platform home24 has reported a decline in sales during its first quarter.
According to its latest trading update, revenue amounted to EUR 140 million in Q1 2022, a decrease of 14% year-on-year in constant currency and 12 % excluding currency effects. Adjusted EBITDA margin for Q1 is -4%.
Despite the decline, the company said it made ‘significant progress’ in its strategic initiatives to broaden its positioning and to set grounds for future growth opportunities.
This includes the acquisition of the home accessories expert Butlers that closed on April 1, and groundwork for a curated marketplace, which is scheduled to launch in the summer of 2022.
In Europe, the sales decreased by 15% to EUR 114 million compared to Q1 2021. In Brazil, the revenue in the same period amounted to EUR 27 million, a decrease of 8% at constant currency.
“We have strengthened several cornerstones of our business model to ensure that we remain a trusted destination for customers. These include the successful acquisition of Butlers, the launch of a curated marketplace for third-party sellers starting in the summer of 2022, and the replenishment of our warehouses,” says Marc Appelhoff, CEO of home24.
In order to further retain customers who are possibly postponing the purchase of larger furniture in the current situation, the home24 said it is strengthening its range of items that require lower spending.
With the acquisition of Butlers, home24 has expanded its range to include a large number of low-priced home accessory items and also strengthened its own-brand expertise. The marketplace for third-party sellers launching in summer 2022 will also expand home24’s range of home accessories and close gaps in the existing offering.
So far, home24 has signed up sellers in the high double-digit range. In addition, the Company has stocked up its bestsellers and thus is in a position to deliver quickly and reliably despite continued global disruptions in the supply chains.
“Outlook for 2022 unchanged at revenue growth of 2% to 17% and an adjusted EBITDA margin between +1 % to +5 %,” the company added.