Latest news with #PetraScharner-Wolff
Fibre2Fashion
26-05-2025
- Business
- Fibre2Fashion
Germany's Otto Group returns to profit with $314.64 mn EBIT in FY24-25
German retail company Otto Group has generated a revenue of just under €15 billion (~$17.1 billion) and significantly improved profitability in financial year 2024-25, ended February 28, 2025. The EBIT surged to €276 million (~$314.64 million) from €8 million the previous year, while EBITDA rose to €916 million. The group recorded a net profit of €165 million (~$188.10 million) and reduced net financial debt by €579 million, improving its equity ratio to 36 per cent. The platforms segment, led by Otto and About You, grew by 4.7 per cent, with Otto's gross merchandise value (GMV) rising 9 per cent to over €7 billion. Section-wise, About You also performed strongly, increasing revenue to €2 billion. However, Brand Concepts saw a 3.3 per cent revenue dip due to challenges in the US market, despite solid gains by Witt group and Crate and Barrel. The retailer segment declined by 4 per cent to down to €1.7 billion following strategic exits, while services grew by 12 per cent and financial services rose by 5.8 per cent, driven by the EOS group, Otto said in a press release. Otto Group has reported revenue just under €15 billion (~$17.1 billion) in financial year 2024-25, with EBIT surging to €276 million (~$314.64 million) and net profit reaching €165 million. Growth in platforms, especially Otto and About You, offset dips in Brand Concepts and retailers. The group launched a new strategy focused on customer needs and core business scaling, aiming for profitability by 2030. 'Despite the continuing and extremely tense geopolitical environment and the gloomy consumer sentiment we are still experiencing especially in Germany, our clear focus has enabled us to succeed not only in keeping revenues stable, but also in bringing the Otto Group clearly into the black at all earnings levels. We have faced up to the challenges of the market and coped with them very well. Of course, we are satisfied with what we have achieved over the past financial year. This has further 2 increased our financial stability and now allows us to look forward with a degree of optimism,' said Petra Scharner-Wolff, chairwoman of the executive board and chief executive officer (CEO) of Otto Group. The Otto group has launched a new strategic agenda focused on customer needs, scaling core businesses like Otto, Crate & Barrel, and EOS, and expanding operations in Europe and North America. Aiming for greater financial freedom by 2030, the group is prioritising profitability, investment capacity, and technological competitiveness, especially through GenAI. Significant IT and logistics investments have already enhanced efficiency. Mahbobeh Sabetnia joins the executive board to lead on technology and retail. Despite ongoing global uncertainties, the group targets stable revenue and increased profitability, maintaining its long-term, value-driven vision, added the release. Fibre2Fashion News Desk (SG)
Fashion Network
21-05-2025
- Business
- Fashion Network
Freemans and Bonprix owner Otto sees turnaround but Retailer segment sales fall
"Despite the continuing extremely tense geopolitical environment and the still gloomy consumer sentiment, also and above all in Germany, we have not only managed to keep our revenues stable with a clear focus, but also to bring the Otto Group clearly into the black at all earnings levels," said new CEO Petra Scharner-Wolff of the results. "We have taken on the challenges of the market and mastered them very well. We are satisfied with the past financial year, which has further increased our financial stability and allows us to look to the future with optimism," she continued. The various segments according to which the Otto Group manages its Group companies - Platforms, Brand Concepts, Retailers, Services, and Financial Services - have developed differently in terms of revenue and earnings. The largest segment in terms of revenue, Platforms, which primarily includes the Otto online store and About You, performed strongly. IFRS revenue here increased by 4.7 percent compared to the 2023/24 financial year, from €6.2 billion to over €6.5 billion. With regard to Otto, it should be noted that IFRS revenue only includes commissions from the marketplace business in addition to traditional revenue from own business and the services offered. According to IFRS, these revenues from the e-commerce platform increased by around 5 percent to €4.4 billion. GMV rose by around 9 percent in the 2024/25 financial year, from €6.5 billion to over €7 billion. Overall, Otto is growing faster than the competition in Germany and is therefore gaining market share. The number of active customers climbed by 4 percent to around 12.2 million. About You - still part of the Otto Group and therefore fully consolidated - has also confirmed its business forecast for the 2024/25 financial year. Revenue increased by 3.6 percent from just under €1.9 billion to €2 billion. By contrast, the Brand Concepts segment, which mainly includes the Crate and Barrel, Bonprix and Witt Group, recorded a 3.3% decline in sales from around €5.3 billion to €5.1 billion. In addition to the subdued consumer sentiment and increasing competition, the weakening of business operations in the USA under the Venus brand had a significant negative impact on the sales performance of the Bonprix Group, headquartered in Hamburg. The Retailer segment, which is less relevant in terms of sales (including the Freemans, Baur Group, Limango and Manufactum), recorded a 4% decline in sales on a comparable basis to €1.7 billion. The Services segment, which includes the group's logistics service providers and the Otto International purchasing network, grew by 12 percent and generated revenues of €419 million compared to €374 million in the same period of the previous year. The segment benefited from the slight increase in demand in e-commerce. According to the Hamburg-based retail and services group, the overriding aim of the new strategic agenda is to secure its own future viability in the medium and long term. To this end, the company intends to focus its own activities even more intensively on the needs and requirements of customers and partners in the future. At the same time, the Otto Group plans to decisively scale successful business models in its core portfolio such as Otto, Crate and Barrel and Eos in order to return to strong growth in the medium and long term. The international business in Europe and North America is also to be expanded in a targeted manner. "We also want to make significant progress in the current financial year. Even if we assume that 2026 and 2027 will still primarily be years of consolidation, our overriding goal remains to further strengthen the Otto Group's resilience and solidity in order to remain equipped should the general conditions continue to be volatile. Especially in these times, it is good to know that we have a family of entrepreneurs behind us who think in terms of generations. We remain true to our values. We are staying on course," said Scharner-Wolff.
Fashion Network
21-05-2025
- Business
- Fashion Network
Freemans and Bonprix owner Otto sees turnaround but Retailer segment sales fall
"Despite the continuing extremely tense geopolitical environment and the still gloomy consumer sentiment, also and above all in Germany, we have not only managed to keep our revenues stable with a clear focus, but also to bring the Otto Group clearly into the black at all earnings levels," said new CEO Petra Scharner-Wolff of the results. "We have taken on the challenges of the market and mastered them very well. We are satisfied with the past financial year, which has further increased our financial stability and allows us to look to the future with optimism," she continued. The various segments according to which the Otto Group manages its Group companies - Platforms, Brand Concepts, Retailers, Services, and Financial Services - have developed differently in terms of revenue and earnings. The largest segment in terms of revenue, Platforms, which primarily includes the Otto online store and About You, performed strongly. IFRS revenue here increased by 4.7 percent compared to the 2023/24 financial year, from €6.2 billion to over €6.5 billion. With regard to Otto, it should be noted that IFRS revenue only includes commissions from the marketplace business in addition to traditional revenue from own business and the services offered. According to IFRS, these revenues from the e-commerce platform increased by around 5 percent to €4.4 billion. GMV rose by around 9 percent in the 2024/25 financial year, from €6.5 billion to over €7 billion. Overall, Otto is growing faster than the competition in Germany and is therefore gaining market share. The number of active customers climbed by 4 percent to around 12.2 million. About You - still part of the Otto Group and therefore fully consolidated - has also confirmed its business forecast for the 2024/25 financial year. Revenue increased by 3.6 percent from just under €1.9 billion to €2 billion. By contrast, the Brand Concepts segment, which mainly includes the Crate and Barrel, Bonprix and Witt Group, recorded a 3.3% decline in sales from around €5.3 billion to €5.1 billion. In addition to the subdued consumer sentiment and increasing competition, the weakening of business operations in the USA under the Venus brand had a significant negative impact on the sales performance of the Bonprix Group, headquartered in Hamburg. The Retailer segment, which is less relevant in terms of sales (including the Freemans, Baur Group, Limango and Manufactum), recorded a 4% decline in sales on a comparable basis to €1.7 billion. The Services segment, which includes the group's logistics service providers and the Otto International purchasing network, grew by 12 percent and generated revenues of €419 million compared to €374 million in the same period of the previous year. The segment benefited from the slight increase in demand in e-commerce. According to the Hamburg-based retail and services group, the overriding aim of the new strategic agenda is to secure its own future viability in the medium and long term. To this end, the company intends to focus its own activities even more intensively on the needs and requirements of customers and partners in the future. At the same time, the Otto Group plans to decisively scale successful business models in its core portfolio such as Otto, Crate and Barrel and Eos in order to return to strong growth in the medium and long term. The international business in Europe and North America is also to be expanded in a targeted manner. "We also want to make significant progress in the current financial year. Even if we assume that 2026 and 2027 will still primarily be years of consolidation, our overriding goal remains to further strengthen the Otto Group's resilience and solidity in order to remain equipped should the general conditions continue to be volatile. Especially in these times, it is good to know that we have a family of entrepreneurs behind us who think in terms of generations. We remain true to our values. We are staying on course," said Scharner-Wolff.
Fashion Network
21-05-2025
- Business
- Fashion Network
Freemans and Bonprix owner Otto sees turnaround but Retailer segment sales fall
"Despite the continuing extremely tense geopolitical environment and the still gloomy consumer sentiment, also and above all in Germany, we have not only managed to keep our revenues stable with a clear focus, but also to bring the Otto Group clearly into the black at all earnings levels," said new CEO Petra Scharner-Wolff of the results. "We have taken on the challenges of the market and mastered them very well. We are satisfied with the past financial year, which has further increased our financial stability and allows us to look to the future with optimism," she continued. The various segments according to which the Otto Group manages its Group companies - Platforms, Brand Concepts, Retailers, Services, and Financial Services - have developed differently in terms of revenue and earnings. The largest segment in terms of revenue, Platforms, which primarily includes the Otto online store and About You, performed strongly. IFRS revenue here increased by 4.7 percent compared to the 2023/24 financial year, from €6.2 billion to over €6.5 billion. With regard to Otto, it should be noted that IFRS revenue only includes commissions from the marketplace business in addition to traditional revenue from own business and the services offered. According to IFRS, these revenues from the e-commerce platform increased by around 5 percent to €4.4 billion. GMV rose by around 9 percent in the 2024/25 financial year, from €6.5 billion to over €7 billion. Overall, Otto is growing faster than the competition in Germany and is therefore gaining market share. The number of active customers climbed by 4 percent to around 12.2 million. About You - still part of the Otto Group and therefore fully consolidated - has also confirmed its business forecast for the 2024/25 financial year. Revenue increased by 3.6 percent from just under €1.9 billion to €2 billion. By contrast, the Brand Concepts segment, which mainly includes the Crate and Barrel, Bonprix and Witt Group, recorded a 3.3% decline in sales from around €5.3 billion to €5.1 billion. In addition to the subdued consumer sentiment and increasing competition, the weakening of business operations in the USA under the Venus brand had a significant negative impact on the sales performance of the Bonprix Group, headquartered in Hamburg. The Retailer segment, which is less relevant in terms of sales (including the Freemans, Baur Group, Limango and Manufactum), recorded a 4% decline in sales on a comparable basis to €1.7 billion. The Services segment, which includes the group's logistics service providers and the Otto International purchasing network, grew by 12 percent and generated revenues of €419 million compared to €374 million in the same period of the previous year. The segment benefited from the slight increase in demand in e-commerce. According to the Hamburg-based retail and services group, the overriding aim of the new strategic agenda is to secure its own future viability in the medium and long term. To this end, the company intends to focus its own activities even more intensively on the needs and requirements of customers and partners in the future. At the same time, the Otto Group plans to decisively scale successful business models in its core portfolio such as Otto, Crate and Barrel and Eos in order to return to strong growth in the medium and long term. The international business in Europe and North America is also to be expanded in a targeted manner. "We also want to make significant progress in the current financial year. Even if we assume that 2026 and 2027 will still primarily be years of consolidation, our overriding goal remains to further strengthen the Otto Group's resilience and solidity in order to remain equipped should the general conditions continue to be volatile. Especially in these times, it is good to know that we have a family of entrepreneurs behind us who think in terms of generations. We remain true to our values. We are staying on course," said Scharner-Wolff.
