Several Swedish media outlets have reported on Footway Group’s first-quarter figures, which show that the Swedish e-commerce group’s sales fell 7.9 percent year-on-year to SEK 215.9 million (€19.08m). Operating profit (Ebitda) for the quarter was SEK -24.5 million (-€2.17m), an improvement from SEK -71.2 million a year earlier. According to Daniel Mühlbach, Footway’s CEO, one reason for this is the relaunch of the fashion outlet brandosa.com, which exceeded expectations. This has contributed strongly to the company’s positive cash flow.
Growth in the other markets (excluding Scandinavia) was strong in the quarter, with an increase of 43.7 percent to SEK 71.4 million (€6.31m), partly due to the weak krona, which strengthened margins outside Sweden. The U.K., Germany and France continue to show potential and increased their sales by 101.4 percent, 30.9 percent and 35.5 percent, respectively, compared to the same quarter last year.
According to ehandel.se, Footway has had a difficult time with declining sales and increasing losses. The e-tailer was forced to write down its inventory by SEK 186 million (€16.44m), and at the beginning of this year, the company had 18 ongoing cases with the Swedish Enforcement Agency. “Our inventory has decreased by SEK 45 million, which can be compared to the general increase in inventory in the first quarter. The decrease this year is due to the relaunch of our outlet store and active work in planning deliveries of new goods,” said Mülbach. The first quarter also saw Footway Group launch its first collaboration, whereby the e-tailer offers its platform and stores to help suppliers reduce their inventory.
The latest quarterly report also revealed that the company had only SEK 6 million in cash and cash equivalents, according to ehandel.se. However, the situation has improved somewhat, and Footway’s cash and cash equivalents now stand at SEK 9 million (€795,000).
