Verkkokauppa.com with a difficult last quarter
Electronics and other non-food retailers have had a challenging year amid the turbulence generated by the rapid rise of inflation. This all culminated in Verkkokauppa.com, which has seen its revenues drop for five straight quarters.
The all-important Christmas quarter saw revenues drop by -8,3%, the most significant drop so far, possibly even in the company's history (?).
For the last two years, Verkkokauppa.com has also been playing catch-up with market growth for non-food products (reported by PTY). On the other hand, Verkkokauppa.com is heavily reliant on electronics products, which have been struggling to grow in many markets. However, during autumn, electronics retailing in Finland has been gradually improving. Statistics Finland has reported slight growth between 9/2022-11/2022. December figures are yet to be published. Verkkokauppa.com has been declining more than the market overall.
A surprising element in decline has been the accelerated drop in online sales. The stores declined by -8,3%. Online had a fifth consecutive quarterly decline with a -11,2% drop in online sales.
Q4/2022 was the second holiday season when Verkkokauppa saw revenues drop. The drop in revenue was made more difficult by the declining gross profits, which plummeted by 4,3 million €. This led to a 1.4%-point decline in the Gross profits, which were at a very low level, to begin with.
It isn't easy to find positive too many positive signs from the performance of Verkkokauppa.com. A positive twist can be seen as Verkkokauppa has been able to clean out some extra inventory, which did burden the company during 2021. The inventory per Last Twelve Month sales ratio has declined from 15,3% in Q4/2021 to 13,8% this year.
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