A difficult macroeconomic environment characterised bonprix's first half of the 2022/23 financial year: Burdened by rising raw material and freight costs, the looming energy crisis and a decidedly subdued consumer climate, particularly within the textile sector, the international fashion company reported a decline in sales of just under 11 percent compared with a strong prior-year base, while maintaining a positive rate of return (EBIT margin). The international markets show a heterogeneous picture. Many countries, particularly in Eastern Europe and Scandinavia, continued to develop positively, while a marked reluctance to spend held back business development, particularly in the home market of Germany. Despite challenging conditions, bonprix continues to focus on strategic digitalisation topics and is investing in efficient logistics processes at the mail-order logistics centre in Haldensleben together with its partner Hermes Fulfilment.
After bonprix ended the past fiscal year 2021/22 with a strong increase in sales, signs of negative exogenous factors were already emerging at the start of fiscal year 2022/23 and were to become more pronounced in the following months.
"Like many business sectors, we as a fashion company have not been spared the effects of rising procurement and energy prices and the associated decline in purchasing power and consumer restraint. Overall, this has led to declining sales for bonprix in the first half of the 2022/23 financial year, even though we still outperformed the market across all product ranges. With the start of the fall and the second half of the fiscal year, we can report an initial easing, and our performance in September was very gratifying," Dr. Kai Heck, Managing Director responsible for finance at bonprix, comments on the available figures.
bonprix will also continue to make important strategic investments in the area of digitalisation in the current 2022/23 financial year with the aim of consistently sharpening its profile as a strong international digital fashion brand. This includes, among other things, the expansion of social commerce and the standardisation of the IT infrastructure including the numerous apps across all countries.In the course of this strategic online focus, the pilot project of a digitally interlinked retail concept in the store in Hamburg's Mönckebergstraße, which bonprix launched in 2019 and whose centrepiece is a completely app-assisted customer journey, will come to an end. The valuable insights that the company was able to gain in this pilot project will feed into the continuous further development of the bonprix apps as well as being passed on within the Otto Group.
Even though the market situation is difficult, the start to the second half of the 2022/23 financial year shows decidedly positive trends for bonprix. Warm clothing, knitwear and coats in particular are once again in high demand. bonprix customers are showing an increasing interest in long-lasting basics, where the fashion brand can score points with its recently launched premium knitwear collection with sustainable cashmere. Despite this pleasing development, bonprix continues to prepare for a volatile business.
Dr. Richard Gottwald, Chairman of the Management Board at bonprix and responsible for international sales, says: "A normalisation of the economic conditions is not to be expected for this financial year. But our customers continue to show a high level of loyalty to our services, and bonprix has always been characterised by a high degree of flexibility in managing our international market portfolio. I therefore believe that we are well positioned to compensate for this challenging phase by adapting our market and product strategies while continuing to focus on our customers. By concentrating on our strategic digitalisation topics, we are continuing to invest in the future viability of our business model in order to successfully continue bonprix's growth path in the future.
Image material and background information at www.bonprix.de/corporate/presse/ and on request (Copyright: bonprix).
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As an internationally successful fashion retailer, bonprix reaches customers in 30 countries. The company, which is part of the Otto Group and based in Hamburg, was established in 1986 and now employs around 3,700 people worldwide. In fiscal year 2021/22 (February 28, 2022), the bonprix Group generated sales of EUR 1.94 billion, making it one of the best-performing businesses within the Otto Group. At bonprix, customers can enjoy fashion and shopping on all channels – online, via catalogue or in the bonprix store in Hamburg. E-commerce accounts for the lion's share of sales with around 90 percent. In Germany, www.bonprix.de is one of the twelve highest-grossing online shops and the number three in the fashion sector.* Selling its own brands bpc, bpc selection, BODYFLIRT, RAINBOW and John Baner, bonprix offers customers fashion with an excellent price-performance ratio. The range includes fasion for women, men and children, accessories as well as home and living products.
*Source: Survey “E-Commerce Markt Deutschland 2021” by EHI Retail Institute/Statista