FASHION BOX ENDS 2018 WITH SALES OF €237.9 MILLION AND EBITDA UP 21% ON 2017
Fashion Box, the company that owns the Replay brand, has experienced a decidedly positive 2018. With revenues of €237.9 million and EBITDA of €21.7 million (up 21% on the previous year), the Group is set to accelerate its pace of growth in 2019.
Fashion Box is historically an internationally-oriented company, as exports account for 85% of its total sales.
Matteo Sinigaglia, CEO of Fashion Box SpA, stated: “The positive results of 2018 are the reward of a long-term strategy based on the constant attention paid to the quality of our products and our ability to generate a steady stream of innovative projects. This goes hand in hand with an effective distribution strategy, implemented directly and through carefully selected partners. We will be aiming especially on the development of new markets, together with the strengthening of the existing ones in order to continue an organic and healthy growth.”
In view of its international expansion, last year Fashion Box entered into a strategic partnership arrangement with Reliance Brands Limited for distribution in India of Replay casual wear, footwear and accessories. The agreement, which came into being concretely with the deliveries for Spring/Summer 2019, will be based on a multi-channel distribution, with retail stores – with the opening of 2 flagship stores in Delhi and Mumbai in the next few months, as well as mono-brand stores and shops-in-shop in the most prestigious malls of the country – and through key e-commerce players in India.
Japan deserves a special mention, as the brand continues to grow through highly selective distribution in the main local department stores.
The Company’s growth plan also leverages on the Joint Venture entered into in December with Fashion Company for the distribution of the clothing, footwear and accessory lines in some of the main markets of Eastern Europe. The Joint Venture, majority-owned by Fashion Box, will become operational in Fall/Winter 2019 and expects to develop markets for the Replay products in Bosnia and Herzegovina, Serbia (Kosovo included), Macedonia, Montenegro and Romania, both through the opening of 8 mono-brand stores by 2021 and the development of the wholesale channel.
In addition, Fashion Box is paying great attention to the Latin American market, which today for the brand is no longer just an opportunity but a tangible, important and fast-growing reality.
Thanks to 5 mono-brand stores and 2 outlets opened between April 2017 and December 2018, Brazil is currently the main market for the brand in Latin America. Replay Jeans do Brasil is also active in the wholesale channel and distributes the Replay brand through a network of 200 multi-brand retail stores in the country.
Another important market is Colombia, where, in addition to the two mono-brand stores opened in Bogota and Medellin at the end of last year, the Company will inaugurate 5 retail stores by 2022 and will continue with a wholesale distribution, which is already operational, serving multi-brand stores in strategic locations throughout the country and high-level accounts.
Replay is also present in Paraguay, with a store in Asuncion and a corner in the department store of Ciudad del Este.
In the European market Replay continued its own strengthening, with a double-digit organic growth rate in the wholesale channel, and particularly brilliant results in Northern and Central Europe, thanks to a very positive sell-through in the last few seasons.