Oct 12, 2020 8:25 AM
/ Key word(s): IPO
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- A leading European data-driven online platform for premium and luxury fashion accessories with a focus on the German, Austrian and Swiss region
- Leading brand recognition for premium and luxury handbags in Germany with a constantly growing fashion accessories portfolio
- Well-positioned category leader capturing the accelerating shift from offline to online through a loyal and affluent customer base with outsized and increasing annual order values
- Solid financial performance with sustained double-digit revenue growth - nine months ended 30 September 2020 expected revenue +24% year on year
- Multi-year track record of profitability - 2019 EBITDA margin of 9.3%
- Offering of newly issued shares and existing shares from the holdings of the major shareholder GENUI as well as a customary over-allotment option
- Proceeds from the new shares to be used to drive fashionette's long-term growth strategy via increased marketing, to broaden its product selection and for regional expansion as well as selective acquisitions
- Listing on the Frankfurt Stock Exchange to be completed in the fourth quarter of 2020
The planned IPO consists of a new share issue by the Company, a placement of existing shares from the holdings of Genui Fund GmbH & Co. KG ("GENUI"), the major shareholder of the Company, and a customary over-allotment option. The IPO proceeds will be used primarily to pursue the long-term organic and inorganic growth strategy via increased marketing, to broaden its product selection as well as for regional expansion together with selective acquisitions.
fashionette is a leading European data-driven online platform for premium and luxury fashion accessories having established a market-leading brand recognition in the German online market for premium and luxury handbags. fashionette has one of the most relevant assortments in the market, comprising some 11,000 products from more than 150 international brands.
It is fashionette's mission to offer personalized online shopping of premium and luxury fashion accessories available to all customers, that both transcend short term fashion trends and have a long-lasting appeal. For this purpose, the Company focuses on offering a wide but well assorted and curated range of premium and luxury fashion accessories at a superior service level.
Founded in 2008, the Company operates websites under the "fashionette" brand addressing eight countries (Germany, Austria, Switzerland, France, Italy, Netherlands, Sweden and the United Kingdom) with the German, Austrian and Swiss region as its core region accounting for close to 90% of its revenues in 2019. The Company's leading-edge approach is based on its proprietary technology platform. At fashionette, technology and business intelligence are used as tools to more than just meet the growing demand of customers for a personalized shopping experience. Today, fashionette has more than 140 employees to continuously improve the customer experience.
fashionette's management team, consisting of Daniel Raab (CEO) and Thomas Buhl (COO/CTO), joined together in early 2019 to further develop the business through regional expansion, M&A and data-driven insights. The management board is cultivating a data-driven operating model in a rather traditional-minded and emotion-driven industry. It believes to have a unique blend of experience in all aspects of the retail business including a true e-commerce mindset and a deep understanding of technology developed in combined almost 20 years with Amazon in Germany and the United States. Daniel Raab, who previously worked in the fashion and fashion accessories industry for companies including Hermès and Gucci, was also one of the founding managing directors of ProSiebenSat.1 Media SE's strategic investment arm ProSiebenSat.1 Commerce GmbH. During this time, Daniel Raab was able to gain relevant acquisition and integration experience with companies like Germany's leading online-pure-play beauty retailer Flaconi GmbH.
The management board's entrepreneurial spirit and long-term commitment are underpinned by their financial investment as existing shareholders. The management team are long term shareholders dedicated to the business and will not sell any shares as part of the IPO.
The key element of the Company's strategy is to continue to focus on its profitable growth at above-market rates. The Company aims to become the leading online platform for premium and luxury fashion accessories in Europe.
To achieve this, fashionette plans to accelerate its organic growth and market segment share through the expansion of its product selection and product categories as well as geographic expansion. In addition to these organic growth initiatives, fashionette will seize inorganic growth opportunities through selected acquisitions to drive regional and category expansion.
fashionette is also benefiting from the accelerating shift from offline to online. The Company estimates the total market opportunity in the European premium and luxury fashion accessories market to be approximately EUR 100 billion of the total market size in annual consumer spending calculated from relevant segments within the Statista Consumer Market Outlook of July 2020. The European luxury goods online market is forecasted to achieve a CAGR (compound annual growth rate) of 17% for the years 2020 to 2025.
fashionette is well-positioned in the European premium and luxury fashion accessories market. The Company has already demonstrated solid double-digit year-on-year organic growth with a multi-year track-record of EBITDA profitability since 2013.
In 2019, the Company realized EUR 73.2 million revenue resulting in EUR 6.8 million EBITDA and an EBITDA margin of 9.3%. For the nine months ended 30 September 2020, the Company estimates that it has accelerated revenue growth, with expected revenues of EUR 62.0 million translating into +24% period over period growth compared to the nine months ended 30 September 2019.
The main driver for growth in the six months ended 30 June 2020 were orders from new customers (+35.8% period of period) and orders from active customers (+30.0% period of period) with an average order value of EUR 284. This resulted in an EBITDA of EUR 2.8 million in the six months ended 30 June 2020 (EUR 2.5 million in the six months ended 30 June 2019) and an EBITDA margin of 7.3% in the six months ended 30 June 2020 (7.5% in the six months ended 30 June 2019).
With logistics costs of 6.9% of revenue in the six months ended 30 June 2020 (6.2% for the six months ended 30 June 2019), the Company also believes it benefits from low logistics costs as a percentage of revenue. Lower logistic costs result from constantly improving the Company's operational processes and a high average order value of EUR 284.
In addition, the Company follows a data-driven approach to marketing which leads to an effective deployment of its marketing investments. In the six months ended 30 June 2020, marketing cost as a percentage of order value was 5.3% (5.8% in the six months ended 30 June 2019), also achieving a positive CLV (customer lifetime value)/CAC (customer acquisition costs) ratio with a customer's very first order. With the Company's high customer loyalty positively impacting the CLV over time, the Company's CLV/CAC ratio rises significantly with older customer cohorts.
Hauck & Aufhäuser will act as Sole Global Coordinator and Sole Bookrunner for the IPO.
fashionette is a leading European data-driven online platform for premium and luxury fashion accessories including handbags, shoes, sunglasses, watches and jewelry. Since its foundation in 2008, fashionette has established a market-leading brand recognition for premium and luxury handbags in its core market of Germany. The focus of fashionette is to make personalized online shopping of premium and luxury fashion accessories available to every woman in Europe. For additional information about fashionette, please visit fashionette's websites at corporate.fashionette.com (Corporate Website) and www.fashionette.com (webshop).
GENUI is a private investment firm established by a group of exceptional entrepreneurs and investment experts who believe in "Good Entrepreneurship". GENUI makes investments in excellent medium-sized companies with the aim of actively supporting its partners in achieving high-quality growth and providing a value-add to the stakeholders in a broader sense. Every company is supported within a governance framework by long-term experienced investment professionals and one dedicated entrepreneur, who provides access to expertise and a network suited to the company's endeavored development. For additional information about GENUI, please visit GENUI's website at www.genui.de.
This announcement and the information contained herein are for informational purposes only and are not intended to constitute, and should not be construed as, an offer to sell or subscribe for, or the announcement of a forthcoming offer to sell or subscribe for, or a solicitation of any offer to buy or subscribe for, or the announcement of a forthcoming solicitation of any offer to buy or subscribe for, ordinary shares in the share capital of the Company ("Shares") in the United States of America including its territories or possessions, any state or the District of Columbia (together, "United States") or in any other jurisdiction.
The Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("Securities Act"), and may not be offered or sold within the United States absent registration or an exemption from the registration requirements under the Securities Act. The Company does not intend to register any portion of the offering in the United States or to conduct a public offering of Shares in the United States.
The Company has not authorized any offer to the public of Shares in any Member State of the European Economic Area ("EEA"), except in the Federal Republic of Germany ("Germany"). With respect to any Member State of the EEA other than Germany and with respect to the United Kingdom (each a "Relevant State"), no action has been undertaken or will be undertaken to make an offer to the public of Shares requiring publication of a prospectus in any Relevant State. As a result, the Shares may only be offered in Relevant States:
(i) to any legal entity which is a "qualified investor" in the meaning of Article 2 lit. e) of the Prospectus Regulation; or
For the purpose of this paragraph, the expression "offer of securities to the public" means the communication in any form and by any means of sufficient information on the terms of the offer and the Shares to be offered so as to enable the investor to decide to exercise, purchase or subscribe for the Shares and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129, as amended.
Any such investor will also be deemed to have represented and agreed that any Shares acquired by it in the contemplated offering of Shares have not been acquired on behalf of persons other than such investor. This announcement is an advertisement within the meaning of the Prospectus Regulation and does neither constitute an offer nor a prospectus within the meaning of the Prospectus Regulation.
In the United Kingdom, this announcement and any other materials in relation to the Shares are only being distributed to, and are only directed at, and any investment or investment activity to which this announcement relates is available only to, and will be engaged in only with, "qualified investors" (as defined in section 86 para. 7 of the Financial Services and Markets Act 2000 ("Financial Promotion")) and who are (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19 para. 5 of the Financial Promotion Order 2005 ("Order"); or (ii) high net worth entities falling within Article 49 para. 2 lit. (a) to (d) of the Order (all such persons together being referred to as "relevant persons"). This announcement is directed only at relevant persons. Persons who are not relevant persons should not take any action on the basis of this announcement and should not act or rely on it. Any investment activity to which this announcement relates will only be available to and will only be engaged with, relevant persons. No action has been taken by the Company that would permit an offer of Shares or the possession or distribution of this announcement or any other offering or publicity material relating to such Shares in any jurisdiction, except for Germany, where action for that purpose is required.
This announcement may contain projections or other forward-looking statements regarding i.e. future events or the future financial performance of the Company. You can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", or, in each case, the negative of such terms or other similar expressions. These statements are based on the current views, expectations and assumptions of the management of the Company and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment (including due to the COVID-19 pandemic), risks associated with capital markets, currency exchange rate fluctuations and competition from other companies, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company and other factors. The Company does not assume any obligations to update any projections or other forward-looking statements.
Neither this announcement nor any copy of it may be taken or transmitted, directly or indirectly, into the United States, Australia, Canada, Japan or South Africa. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The offer and the distribution of this announcement and other information in connection with the listing and offer in certain jurisdictions may be restricted by law.
This announcement is an advertisement and constitutes neither an offer to sell nor a solicitation to buy securities. The offer will be made solely by means of, and on the basis of, a prospectus which is to be published following approval by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht - BaFin) ("Prospectus"). An investment decision regarding the Shares referred to in this announcement should only be made on the basis of the Prospectus. The Prospectus will be available free of charge from the Company (fashionette AG, Grafenberger Allee 295, 40237 Düsseldorf, Germany), and on the Company's website (corporate.fashionette.com).
12.10.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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