Actually, wanted to reach break-even at the beginning of 2019 on the basis of adjusted EBIT. But especially the business development in China is destroying this plan. has been undergoing restructuring for some time now. The company has sold its unprofitable Eastern European business and closed its loss-making Italian shop. In addition, the workforce was reduced from more than 400 to 218 active full-time equivalents as of September 30, 2018. All this saved costs. However, the online retailer has not yet achieved its goal of making a profit. Actually, the break-even target was set for early 2019. The reason for the delay is mainly the Chinese business. Although this has improved, it was not yet at the previous year’s level in the fourth quarter of 2018. In the second and third quarter, sales in the Middle Kingdom were impaired primarily by temporarily stricter customs controls and new product launches, according to the company. is planning a product and sales diversification strategy to stimulate business in China. Thus, the promising category “Beauty” and further market platforms will be added. After all, beauty products are in high demand in cross-border online trade with China. needs further capital for restructuring

The company is also opening a second permanent bonded warehouse in China at the beginning of this year. These measures should help the Chinese business to recover. In order to improve business in Europe, plans to expand product categories and further reduce sales and administration costs. In addition, positive effects are expected from organizational improvements and the planned relocation of the central warehouse in 2020. Nevertheless, fresh capital is needed for further restructuring. Therefore, there will be an Extraordinary General Meeting on January 9. Then an ordinary capital reduction through a reverse stock split is to be resolved. The capital reduction will reduce the company’s current share capital from over 31 million euros by more than 28 million euros to 3,113,647 euros. The difference is to be used to offset losses. In addition, the share capital is to be increased. Large shareholders of have indicated that they would participate in such a capital measure.

Rays of hope in the fourth quarter

Overall, the group expects positive results for the past months. expects a double-digit percentage growth in sales for the fourth quarter compared to the third quarter. This is mainly due to important sales events such as Black Friday in Europe and Singles’ Day and Alipays Shopping Holiday in China. In addition, the Group anticipates further structural improvements in margins, selling and administrative expenses and improved net working capital.


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