Answear expects a positive impact from PRM and Sneakerstudio on results from 2024

Answear expects a positive impact on the results of the acquired PRM and Sneakerstudio business from next year, and this year this impact should be around zero. The signing of the final agreement for the acquisition of these brands should take place on June 1, and then the takeover of employees, inventories, as well as consolidation in the group’s results will take place, informed President Krzysztof Bajołek.

The CEO also announced an acceleration of the development of these brands, an increase in revenues and an increase in the effectiveness of advertising activities, which will result in a profitability close to that of Answear or even higher, although the positive impact on the group’s results will not be until next year.

“The significant acquisition we have made will in the initial period involve costs and investments in this entity, but in the long term it is an interesting investment and we are sure that it will work for our future results. We should balance costs with margins and revenues, and we see no reason why our profitability should decrease. This year, the result on this investment should be close to zero, and only next year it will contribute positively to profitability,” Bajołek said during the teleconference.

“There is potential for the profitability of the acquired business to be at least at the same level or even higher than in Answear. After June 1, we start selling initially in Poland, Ukraine and Romania, and by the end of the year we should launch all other domains in EU markets. […] Of these two brands, we will make one – PRM – and we will develop it, counting on rapid growth and the development of new markets for this brand,” he added.

Earlier, the company informed that the acquired organized part of the FTG enterprise has the potential to generate higher profitability than Answear.com alone, and the average ZCP e-commerce basket is PLN 322 compared to PLN 303 in Answear according to data for 9 months of last year. The main goals of the acquisition are, above all, a stepwise increase in the scale of business, reaching new groups of customers, a new market segment that is not served by Answear.com.

The ZCP includes the Sneakerstudio and PRM brands, stationary boutiques in Warsaw and Krakow, contracts with brands and inventory with future orders, teams directly responsible for sales, all sales through distribution channels. However, the transaction does not include B2B distribution activities, which until now have also been carried out by FTG. The revenues of the acquired ZCP last year amounted to – according to preliminary results – PLN 136 million.

Sneakerstudio is the market leader in the sale of sneakers and streetwear in the mid-premium segment in Poland and Ukraine and the second largest sneaker store in CEE; the scope of activity covers mainly CEE; is one of the key partners in the region for adidas Originals, New Balance, Veja and Carhartt.

PRM is a “new concept that fits in with current market trends and offers products from the luxury streetwear & fashion segment addressed to the millennials and GEN-Z generations”, it was also indicated. The products are sold through a global website and a stationary boutique in Warsaw.

Answear.com is an e-commerce company founded in 2011 that sells branded clothing, footwear and accessories. Sales are geographically diversified, and none of the markets accounts for more than 30% of the company’s total revenues. The company has been listed on the main market of the Warsaw Stock Exchange since 2021.

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