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Wittchen SAWittchen fashion wants to destock in Q4 2025, Q1 2026; suitcase sales to be decreased
Listed exclusive leather products manufacturer and retailer Wittchen's goal for the fourth quarter of 2025 and the first quarter of 2026 is to sell off stock stored in its current warehouses, CFO Marcin Szygula announced at a video conference following the release of company's quarterly report. The next step will be reducing the share of suitcase sales and replacing them with higher-margin products.
"First and foremost, in the fourth quarter [of 2025] and the first quarter of the new year, [the main goal - PAP ed.] is to sell off stock [of company's warehouses - PAP ed.], which will have an impact on a certain erosion of margins. Of course, we want to minimise this negative impact as much as possible," Wittchen's CFO told the video conference on Friday.
"We also want to increase this stock's rotation and focus on fast-rotating products. On the one hand, this will allow us to freeze less cash, and on the other hand, it will also reduce storage costs," he added.
Next, as the CFO announced, the company will want to focus more on the product, which, according to Szygula, will take place with the autumn-winter collection. Wittchen assumes that the effect of this action will be visible in the fourth quarter of 2026.
"The goal is also to minimise costs at all times, (...) and the development of e-commerce must (...) on the one hand, draw on what we already have and squeeze out even more, and on the other hand, there are, of course, e-commerce markets or marketplaces that are not performing as well as they would like," he pointed out.
Wittchen's CFO added that the company's next goal for the future is to reduce the share of suitcase sales and replace them with other, higher-margin products.
"In terms of our product range, (...) it is important to note that we are slowly phasing out [the sale of - MI ed.] suitcases. Suitcases are a product range with a fairly low margin in our product offering. It is around 55 percent or lower," Szygula said.
He added that it is also a very price-sensitive product, where any price change or increase makes customers less interested.
"In addition, there is very strong competition from Asian platforms offering suitcases, so our strategy here is to reduce the number of products on offer in order to reduce the share of revenue from suitcases in favour of higher-margin products," the CFO told the conference.
"(...) We want to change the product range so that suitcases ultimately account for approximately 30-35 percent of our revenue," he added.
Furthermore, Szygula announced that Wittchen plans to launch a loyalty programme in mid-2026, followed by a mobile application.
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