SRP Groupe (SRP) Q3 2024 earnings summary

Executive summary

• GMV declined 0.7% and net revenue fell 5.1% for the first nine months of 2024 compared to the same period in 2023, with Q3 showing a 2.3% GMV drop and 7.9% sales decrease.

• Premiumization strategy advanced, with premium brands making up 49% of sales (+6pts), and the first order processed at the new warehouse in Q3.

• Marketplace GMV surged 57% year-over-year, and international business grew 11% over nine months.

• Q3 was impacted by summer supply shortages and lower consumer activity, partially offset by a strong September driven by well-known brands.

Financial highlights

• France GMV dropped 8.5% year-over-year for nine months, while international GMV rose 11.1%.

• Total internet revenue decreased 4.8% for nine months and 7.9% in Q3 year-over-year.

• Other revenue fell 25.1% for nine months.

• Number of orders declined 4.5%, and average basket size decreased 1.5% year-over-year.

• Cumulative buyers increased 7% to 16.4 million, but loyal buyers fell 4.1%.

Outlook and guidance

• ACE roadmap actions to continue in Q4: logistics overhaul, premiumization, and marketplace internalization.

• Recovery expected for Beauté Privée and Home segments; Showroom Media to capitalize on ad market rebound.

• Medium-term goal is a return to profitable growth, leveraging digital marketing and AI.

• Benefits of transformation expected to materialize from 2025 onwards.