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Answear.com SAAnswear e-commerce counts on good Q4 2024
Listed e-commerce company Answear is counting on a good fourth quarter and improved results in the following quarters, company representatives said.
"We expect at least a good fourth quarter, where the negative impact of the exchange rate effect should no longer be visible," the CFO of Answear Jacek Dziadus told a webinar on StockWatch.
"We have a slightly less demanding base from last year, especially in December. I think the fourth quarter should end with at least good results," he added.
The Answear's CFO continued that the company is counting on improved results in the following quarters as well.
"The PRM brand, which we have been developing over the last year, is no longer negatively impacting the company's results, and we assume that over time it will contribute positively to profitability," Dziadus said.
"We expect that consumer sentiment will gradually improve and, above all, thanks to the increase in sales revenue, the cost associated with the repositioning of the Answear brand to the premium segment will be spread over higher sales and will put less of a strain on the company's profitability," he added.
In the first half of 2024, the company invested a record PLN 141 million (EUR 32.5 mln) in marketing activities. These funds were allocated to a campaign across 11 markets to reposition the Answear brand to the premium segment.
In the third quarter of 2024 alone, marketing expenditure amounted to PLN 62 million (EUR 14.3 mln), reducing the ratio of marketing costs to revenue - from 22.6 percent in the first half of 2024 to 18.7 percent in the third quarter of 2024.
Answear's revenue in the third quarter was PLN 344 million (EUR 79.3 mln), up 26 percent year on year.
Online revenues amounted to PLN 350 million (EUR 80.64 mln), up 27 percent year on year. In constant currencies, excluding the impact of negative changes in exchange rates, the company reported a 36 percent year-on-year increase in online revenues to PLN 375 million (EUR 86.4 mln).
EBITDA amounted to PLN 2.1 million (EUR 483,840) in the third quarter, of which the PRM brand loss was PLN 0.4 million (EUR 92,160). In the prior year period, the group had about PLN 7.2 million (EUR 1.7 mln) in EBITDA.
Answear. com is an online multibrand store offering clothing, shoes and accessories. It currently operates in 12 markets. It plans further expansion after returning to higher profitability in future periods.
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