Positive results for the 2018/19 financial year: bonprix grows profitably for the tenth year in a row, with particularly strong growth in Eastern Europe

• Sales rise by 3.4 per cent to €1.57 billion on a comparable basis [1,2]

• High growth rates of over 20 per cent in Eastern European countries

• Brand launch in Spain with own web shop planned for second half of 2019

bonprix Handelsgesellschaft mbH, one of the Otto Group's top-performing companies in terms of sales, can look back on a successful 2018/19 financial year. The vertically integrated and internationally successful fashion brand reported sales growth of 3.4 per cent year-on-year on a comparable basis in its financial statements as of 28 February. According to preliminary calculations, bonprix increased its revenues from around 1.56 billion euros to over 1.57 billion euros (IFRS), thus also achieving slight nominal growth. High growth was achieved in particular in Eastern European markets such as Poland and Czechia. As in the previous year, the return (EBT) remained stable within a target range of between three and five per cent. bonprix is also optimistic about the current 2019/20 financial year.

bonprix is now growing profitably for the tenth year in a row. "We are delighted with the solid growth and stable returns in the past financial year. The positive developments in many of our high-revenue markets show that we are well positioned with our international business model, even under sometimes challenging conditions," said Dr Richard Gottwald, CEO of bonprix Handelsgesellschaft mbH, commenting on the preliminary figures.

High-growth markets, changes and new additions to the international portfolio

bonprix generates over 50 per cent of its total sales abroad. In the past financial year, the Eastern European markets in particular were major growth drivers. Poland and Czechia each achieved sales growth of over 20 per cent, while in the somewhat smaller markets of Romania and Hungary, growth was even higher at over 30 per cent each. The Scandinavian countries are also developing promisingly: market entry in Norway in 2017 was positive, and Sweden is recording double-digit growth rates. The US market remained at the previous year's level, achieving sales of well over £250 million in 2018/19. bonprix withdrew from Turkey in the past financial year due to a lack of economic prospects; the brand remains present in Brazil through a franchise concept. In Europe, bonprix continues to focus on the consistent multiplication of its concept in promising global fashion markets and is currently expanding into Spain: the country's own web shop will go live in the second half of 2019.

IT conversion in the core market of Germany

In the German market, bonprix's turnover is slightly below the previous year's level. This is partly due to the long and hot summer, which also had an impact on the fashion brand's sales in Germany. In addition, the company did not push sales-promoting campaigns due to the technical conversion of its IT landscape: ‘We wanted to make the introduction of SAP as smooth as possible and therefore deliberately scaled back sales and promotional activities during this phase,’ says Dr Kai Heck, Managing Director at bonprix and responsible for IT, finance and services. bonprix successfully completed the IT conversion last year, with a particular focus on its core market in Germany. ‘The successful introduction enables us to operate more quickly and flexibly overall and to focus even more strongly on the customer. This means we are technologically well equipped for the successful further development of our business model,’ says Heck.

Mobile as a growth driver

As in recent years, mobile devices remain a growth driver. In Germany, for example, bonprix recorded around 60 per cent of its e-commerce sales via smartphones and tablets in the past financial year. The share of traffic via these mobile devices now stands at just under 75 per cent. App traffic alone has increased by more than 40 per cent compared to the previous year. With its shopping app for Android and iOS developed in Hamburg, bonprix is now active in 12 countries and has recorded more than 6.5 million installations.

Number 1 in lingerie and swimwear

In terms of product range, bonprix's trendy and classic women's clothing collections in particular continue to develop positively, with some individual fashion lines recording double-digit sales growth. In the lingerie and swimwear categories, the vertical brand has once again demonstrated its strength, recording solid growth in both areas on a high sales basis in the past financial year. It is no coincidence that bonprix is the number one in German distance selling for lingerie and swimwear. [3]

Sustainable innovations

The international fashion company is placing great emphasis on expanding its commitment to sustainability and investing in innovative technologies. Together with Dutch business partners, bonprix founded the CleanDye joint venture in 2017, investing in the construction of a waterless dyeing factory in Vietnam. This factory uses a sustainable dyeing method in which special textiles are dyed with carbon dioxide instead of water. The factory was officially opened on 11 April 2019 by Cora van Nieuwenhuizen, Dutch Minister of Infrastructure and Water Management, and Rien Jansen, bonprix Managing Director responsible for purchasing, marketing and retail. The machines are currently being commissioned, with dyeing scheduled to start in late spring and the first products expected to be available in late 2019/early 2020.

Another example of bonprix's innovative strength is the radically customer-centric, digitally assisted and adaptive retail concept ‘fashion connect’. The pilot store, which opened in mid-February in Hamburg city centre, has got off to a very positive start and is now undergoing continuous development. In line with the omni-channel strategy, new features such as the increased use of digital marketing measures, personalised product suggestions, automatic check-in and a gradual expansion of payment options are in the pipeline.

Optimistic outlook for 2019/20

bonprix also considers itself well positioned for profitable growth in the current 2019/20 financial year. ‘We are fully focused on managing and expanding our complex international business model and will continue on the path we have paved,’ assures CEO Dr Richard Gottwald. An important linchpin in this is consistent customer focus. ‘What concerns our customers in their everyday lives and what is and can be the role of bonprix – now and in the future? With this premise in mind, we will continue to invest in forward-looking technologies and approaches,’ concludes Gottwald.

[1] For all Otto Group companies that had a different financial year end, the financial year end was harmonised to the consolidated financial statement date of 28 February from the 2017/18 financial year onwards. As a result, bonprix Handelsgesellschaft mbH recorded a financial year extended by two months in some markets in 2017/18.

[2] Excluding Russia, which is reported via Otto Group Russia.

[3] Source: GfK Textile Panel on the German clothing market: ‘Distance selling outlets 2018’ (evaluation by sales volume)