bonprix gets off to a positive start in the second half of the financial year

After a very challenging first half of the 2020/21 financial year*, the international fashion company bonprix is currently recording encouraging sales growth. The slump in sales in the first quarter of the current financial year caused by the global coronavirus pandemic has been increasingly offset since June. Thanks to successful strategic management of its market and product portfolio, the Otto Group company was able to end the first half of the financial year with a slight decline in sales of 3.6 per cent compared to the previous year, with a secure positive return, even under the difficult conditions of recent months, particularly in the textile sector. September, the first month of the second half of the financial year, ended on a very positive note overall, with double-digit growth in the domestic market and in several international markets, underpinning the upward trend.

"Shortly after the start of the 2020/21 financial year, we, like the entire market, were confronted with major challenges. The global coronavirus pandemic led to sharp declines in demand and sales in some countries, especially in March and April. The fashion industry was particularly affected. Thanks to a number of immediate sales measures and changes to our services, we were able to offset this decline with positive effects and win over numerous new customers for bonprix. The current noticeable shift from offline to online shopping also had a supportive effect," said Dr Kai Heck, bonprix's managing director responsible for finance, commenting on the current business results.

Overall, the first half of the financial year presents a mixed picture in the 30 countries in which bonprix operates. Adjusted market and product strategies, the positive effects of so-called ‘turbo digitalisation’ in markets with previously weaker online affinity, and catch-up effects following the lockdown phases have already led to very encouraging growth in some markets in recent months: Italy, for example, recorded double-digit growth, while bonprix posted good single-digit sales growth in Poland, France, the Netherlands and Switzerland.

In the home market of Germany, the previous year's level had not yet been reached at the end of the first half of the year despite an upward trend since June, but the positive start to the second half of the financial year saw a very encouraging double-digit increase in sales of 13 per cent compared with the previous year for the month of September alone.

In the USA and Russia, business developments are characterised by difficult market conditions: the American brand VENUS, with a strong focus on beachwear, had to contend with consumer reluctance exacerbated by the coronavirus pandemic and high competitive pressure. The result in Russia was impacted by the weak rouble exchange rate. In both countries, these effects overshadowed the progress made, particularly in driving forward the digital transformation in the American market and expanding sales measures in Russia, and led to a lower half-year result than in the previous year.

Changing and, in many areas, growing customer demand is also reflected in the sales performance of the product ranges. The reorientation of many consumers' working and living environments against the backdrop of the coronavirus pandemic has implications for fashion needs. In recent months, there has been particular demand for smart casual segments with comfortable clothing for working from home and leisure. Lingerie, children's fashion, sports and living were also in high demand and grew by double digits compared to the previous year. In contrast, classic business looks and swimwear, for example, were purchased less frequently.

‘Overall, we are very satisfied with how we were able to end this challenging first half of the 2020/21 financial year through successful crisis management, an agile approach and adapted offers and services for our customers,’ says Dr Richard Gottwald, CEO and also responsible for international sales, summarising the current developments at bonprix and emphasising: ‘The health and safety of our customers, employees and business partners has always been and remains our top priority.’

For the current second half of the financial year, Richard Gottwald believes that bonprix's business model is well positioned thanks to the advantages of its diverse product range and broad international portfolio: "bonprix has proven its capabilities in recent months, and I would like to express my sincere thanks to our dedicated team. Not only have we weathered stormy times, we have also succeeded in adapting to changing customer behaviour and seizing new market opportunities. Of course, it is not possible to make a reliable forecast at this point in time. However, I am confident that, if the positive growth trend continues, we will be able to close the financial year at the same level as last year or even slightly above it."

* Financial year: 1 March 2020 to 28 February 2021.