Online German furniture retailer home24 has reported a decline in annual revenues but posted a ‘favourable development’ in earnings.
According to its latest trading update, total sales for 2022 fell 5% to €601m from €616m. home24 had guided a revenue development of -7% to +3% at mid-year 2022.
Adjusted EBITDA showed a ‘favourable development’ compared to the previous year, improving significantly to €15.2m in 2022 (previous year €1.5m), with an adjusted EBITDA margin of 2.5%, and was thus also in the expected target range of 1% to 5%.
“We took early action to respond to the challenging market environment and achieved a good result in 2022 in the context of broader market development,” says CEO Marc Appelhoff.
“In an environment that has been clouded by weak consumer sentiment and has become very challenging for market participants, home24 adjusted purchasing volumes early on so that there was no significant selling pressure. In a market environment that has been clouded by weak consumer sentiment and turned challenging, home24 adjusted purchasing volumes early to prevent significant pressure for sell-offs.
“By focusing on the levers of business that were influenceable, margins were continuously improved over the course of the year and, in combination with a moderate reduction in fixed costs, resulted in an effective response to the reduced online demand. The successful integration of Butlers and the launch of the home24 marketplace also contributed to the company holding its own very well in the market.”
Furthermore, the bidders for the XXXLutz Group submitted the notification for the merger control clearance procedure at the beginning of March. The merger control procedure is expected to be completed in the second quarter of 2023. Together with the XXXLutz Group, home24 intends to continue its successful path as an innovative company.
“We see home24 very well positioned as a leading platform in the home & living market. Our offering is both extensive and curated, and we are steadily expanding this range. As a technology-driven e-commerce company, we focus on effectively linking our online business with our offline activities, especially the Butlers stores in city centers,” says Appelhoff.
“In 2023, home24 will further expand the “homeCLUB” customer loyalty programme and integrate selected furniture from home24 in many Butlers shops. Additional suppliers are also to be selectively acquired for the home24 marketplaces in Germany, France, Austria and Switzerland. After yet another challenging year, our gratitude goes to our home24 employees who have done an outstanding job in uncertain times,” says Marc Appelhoff.
