Strong year-end results for bonprix: Turnover in the 2021/22 financial year rises by 10 per cent to around €1.94 billion

bonprix has achieved its target of double-digit sales growth in the 2021/22 financial year (1 March 2021 to 28 February 2022): The international fashion company increased its sales revenue by 10 per cent from €1.76 billion to €1.94 billion with stable returns (EBIT margin), thus growing profitably for the 13th consecutive year. Germany, as the core market, closed the year strongly with double-digit sales growth compared to the previous year, and many Eastern European and Scandinavian bonprix countries also showed excellent growth. In the USA, the company achieved a successful turnaround with the VENUS brand.

‘The business development and double-digit sales growth of around 10 per cent compared to the previous year are a great success for us. We have been very successful in exploiting new market opportunities in these countries through accelerated digitalisation, winning new customers in many markets and thus further developing ourselves as an international digital fashion brand,’ says Dr Kai Heck, Managing Director responsible for finance at bonprix, commenting on the extremely positive business performance.

International business development

At the end of the 2021/22 financial year, bonprix presents a very satisfactory overall picture both at home and abroad:

• Germany, as its home and core market, was able to build on the highly encouraging development of the first half of the financial year. Overall, sales rose by around 10 per cent year-on-year to just under 750 million euros by the end of the financial year. More than 5 million active customers in Germany order fashion and more from the Hamburg-based fashion company.

• Many Eastern European markets also managed to build on the excellent performance of the first six months of the financial year. Particularly noteworthy here are Czechia, Hungary and Slovakia with growth rates in the high double digits (well over 20 per cent), but Poland and Romania also achieved double-digit growth.

• In Western Europe, sales in the Netherlands grew successfully by more than 10 per cent. Other high-turnover focus countries such as France and Austria were slightly above the previous year's level, while Italy and Switzerland were unable to match the previous year's figures.

• The Scandinavian countries Sweden, Norway and – new since 2021 – Finland, continued to develop very positively and achieved growth rates in the high single-digit and mid-double-digit range. With the new Finnish market, bonprix was able to complete its business portfolio in Scandinavia and leverage synergy effects among the three countries – this is also reflected in the positive response of Finnish customers to the new provider bonprix.

• The performance of the VENUS brand in the USA continued to be particularly encouraging. Here, bonprix achieved a turnaround in the first half of the 2021/22 financial year after ongoing challenges due to a difficult market environment and exchange rate pressures. The extremely positive growth continued, resulting in a year-on-year increase of almost 20 per cent.

Termination of online trading in Russia

In Russia, the weak business performance of previous years continued, and bonprix recorded a loss in sales of over 30 per cent in the financial year, to only a mid-double-digit million amount. Following a necessary reassessment of the future viability of its retail business there, the bonprix brand is withdrawing from the Russian market. The political and economic conditions are depriving the company of the basis for an economically viable business model in Russia. At the beginning of March, bonprix had already decided to discontinue its online business in Russia.

"The decision to end our long-standing e-commerce business in Russia was not an easy one, but we no longer see any prospects for our company in the country. I would like to thank our colleagues in Russia and Germany for their great commitment over the past years," says Dr Richard Gottwald, CEO of bonprix and responsible for international sales. The company is now focusing on developing socially acceptable solutions for the employees affected and, where possible, examining internal follow-up opportunities.

Strong product range growth in key segments

In terms of product range, demand in the individual segments continued to be strongly influenced by the coronavirus pandemic in the 2021/22 financial year. The casualisation trend continued in the women's collection, with shirts and denim items in particular recording above-average growth. The dresses segment, which occupies a central position in the bonprix product range, recorded a decline during the pandemic. As social events increased again, there were encouraging signs of recovery here, particularly towards the end of the financial year. Thanks to the continuing high demand for personal well-being products and a broad-based national media campaign in autumn 2021, the lingerie segment achieved further growth on a very high prior-year basis, driven in particular by nightwear and loungewear. The sports segment also benefited from this development and achieved additional growth on a high prior-year basis. The children's range also grew significantly once again, outperforming the market.

Sustainably manufactured products continue to grow in importance in the bonprix range. Last autumn/winter, the company reached a new milestone with a high proportion of 80 per cent sustainable materials for the styles in its women's collection*; and in the new financial year, it is presenting undyed fashion for the first time in its current spring/summer collection, which protects valuable water resources.

Further development of the bonprix digital fashion brand

In the 2021/22 financial year, bonprix has also placed a key strategic focus on further sharpening its profile as a digital fashion brand and continuing to drive customer loyalty via digital channels. This is based on the user-related personalisation of the web shop and the further development and internationalisation of the bonprix app in terms of content, combined with investments in high-reach app install campaigns. In addition, the company focused on expanding its social media activities and numerous live shopping events, in which fashion influencers brought bonprix's key styles to life for customers with a high entertainment factor.

Outlook for the 2022/23 financial year

‘The 2021/22 financial year was one of the strongest in bonprix's history and we are very pleased with the successful conclusion,’ says Richard Gottwald, commenting on the encouraging business development. In the current financial year, bonprix will have to contend with challenging conditions for global trade, new requirements such as price increases in procurement and subdued consumer sentiment. Gottwald concludes: ‘The financial year is challenging, but I believe we are well positioned for the continuing extremely volatile market situation. Our goal is to drive forward our strategic themes in the challenging 2022/23 financial year and to continue to work ambitiously and with high quality towards our customers.’

* Calculation for the DOB collection (women's outerwear) with campaign and sales launch on 30 September 2021.