milan — The fashion industry is still figuring out how to move its business online and make money with it, but Italy's Giglio.com is moving forward while the outlook for many e-commerce giants, including Farfetch and Matches, is uncertain. Masu.
The luxury online retailer, listed on the Milan Stock Exchange's AIM Italia program dedicated to small and medium-sized enterprises, is set to increase sales by 10% to €56.3 million in 2023, improving profitability in the process. It was very successful.
CEO Giuseppe Giglio told WWD that 2023 was “a particularly difficult year for our industry.” This year has been characterized by great uncertainty for retailers leveraging such services. [marketplace] Our platform and consumers were surprised by this news. ”
However, “we have proven to be strong against market forces. We are doing well and our strength lies in our ability to interact with retailers and consumers around the world, making both of us stronger than the other.'' We have demonstrated that we have the ability to use it to our advantage. Luxury [consumption] The economy is always cyclical, and slowdowns are natural. ”
The company cited expanded product offerings as one of the drivers of revenue growth in 2023. Giglio.com functions as a marketplace with approximately 200 physical stores as partners, primarily in Italy, but also in France and Spain. Countries.
International retail partners who, in Giglio's words, are “looking for alternatives to Farfetch” will be joined by increased representation from Italy's neighboring countries, including Austria, France, Germany, Switzerland and Spain, starting Dec. 31. This is an increase of 50% over the past 12 months.
Adjusted earnings before interest, tax, depreciation and amortization were -200,000 euros last year, representing an improvement of 3 percentage points over two years. EBITDA in 2022 was negative by EUR 1 million.
The company said profitability improved due to expanded international expansion and rationalization of pricing and discount policies.
“We are growing in an area where luxury consumption is concentrated,” Giglio said. “We are confident that we will achieve positive profitability this year.” [2024] thanks to the investment [made] “It’s important in expanding technology and our services,” he said. “Our growth is directly tied to catalog growth. It's a simple equation: more partners means better products,” he pointed out.
Last year, Giglio.com achieved strong results in Germany, France, the Netherlands, Austria and Greece, with more than 153,000 active customers, an increase of 16% year over year.
“I’m very confident about 2024. I believe the spring will still be defined by high interest rates and inflation… There will be early fall sales in the summer; [luxury consumption] It will go back to normal,” Giglio said. “Luxury consumers are used to higher prices.” [in the cost of life] It’s been since 8-12 months,” he said.
As reported, Giglio.com entered the second-hand goods market last year in collaboration with Vestiaire Collective, introducing a design and lifestyle section, both of which contributed to an increase in total product value. We also opened a 75,347 square foot state-of-the-art complex in Palermo, Italy, dedicated to logistics operations and product photography.
The net loss in 2023 was €1.7 million, while the net loss in 2022 was €2.3 million.
Giglio.com's share price was flat at 1.80 euros after 2023 financial results were announced in Milan in the early afternoon.
According to reports, the outlook for fashion e-commerce is mostly rosy.
Over the past few months, Matches has been sold in a fire sale for £52m, but will eventually be placed into administration, with short-term owner Frasers saying: “Too much change is needed to rebuild.'' has become clear.”
Farfetch is partnering with South Korean e-commerce giant Coupang, which snapped up a company that was once worth nearly $40 billion for $500 million, while Youkes Net-a-Porter is looking for a new owner after the acquisition. It seems that he went out to sea again. We have terminated our contract with Farfetch. The owner, Compagnie Financière Richemont, then wrote off the value on its books.
Both Saks.com and Moda Operandi are considering raising capital.
In addition to the Giglio.com business, the Giglio family independently operates five brick-and-mortar boutiques in Palermo, Italy. This business started in his 1965 year.
