Footshop A.s. · PSECZ:FTSHP
Footshop A.s — H1 2024 Earnings Presentation
47 slides from Footshop A.s's earnings presentation, September 2024
Slide 1: Financial Results for the First Half of 2024
FOOTSHOP4 FINANCIAL RESULTS FOR THE FIRST HALF OF 2024 September 2024
Slide 2: Disclaimer
DISCLAIMER 1. GENERAL PROVISIONS THIS HALF-YEAR FINANCIAL REPORT OF FOOTSHOP A.S., COMPANY WITH ITS REGISTERED OFFICE AT THÁMOVA 166/18, KARLÍN, 186 00 PRAGUE 8, ID NO.: 14027348, REGISTERED IN THE COMMERCIAL REGISTER KEPT BY THE MUNICIPAL COURT IN PRAGUE UNDER FILE NO. B 26841 (HEREINAFTER REFERRED
Slide 3: Disclaimer: Alternative Performance Indicators
DISCLAIMER 4. ALTERNATIVE PERFORMANCE INDICATORS THIS REPORT INCLUDES CERTAIN FINANCIAL INDICATORS THAT ARE NOT DEFINED OR RECOGNISED UNDER IFRS ACCOUNTING STANDARDS, AND WHICH ARE CONSIDERED TO BE ALTERNATIVE PERFORMANCE INDICATORS AS DEFINED BY THE ESMA GENERAL GUIDELINES ON ALTERNATIVE PERFORMANC
Slide 4: Content
CONTENT 1. CEO INTRO (4) 2. FOOTSHOP GROUP INTRODUCTION (5) 3. MACROECONOMIC ENVIRONMENT (16) 4. FINANCIAL RESULTS (20) A. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (22) B. CONSOLIDATED STATEMENT OF PROFIT OR LOSS (26) C. CONSOLIDATED STATEMENT OF CASH FLOWS (31) 5. GUIDANCE 2024 (32) 6. KEY EVEN
Slide 5: CEO Intro
CEO INTRO I AM PROUD TO REPRESENT A COMPANY THAT HAS ACHIEVED OUTSTANDING RESULTS THIS YEAR. OUR HARD WORKING ETHIC, COMMITMENT TO IMPROVEMENTS, AND MEANINGFUL INVESTMENTS IN NEW BUSINESS DRIVERS HAVE DELIVERED BETTER-THAN- EXPECTED RESULTS. I AM PLEASED TO ANNOUNCE THAT THIS HAS BEEN OUR COMPANY'S
Slide 6: Footshop Group Introduction
FOOTSHOP kGROUP INTRODUCTION 6
Slide 7: Footshop Group Overview
FOOTSHOP GROUP INTRODUCTION > FOOTSHOP GROUP OVERVIEW FOOTSHOP2 Leading online and B&M Czech based company Operating through Operating 4 flagship B&M retailer of streetwear headquartered in Prague 2 online stores stores in Prague, Bratislava, footwear, apparel and Footshop & Queens Bucharest and Bud
Slide 8: Brief History
FOOTSHOP GROUP INTRODUCTION > BRIEF HISTORY FOOTSHOP2 2012 2014 2015 2016 2018 COMPANY 1st B&M STORE ADIDAS 2nd B&M STORE 3rd B&M STORE ESTABLISHMENT IN PRAGUE CONSORTIUM IN BRATISLAVA IN BUDAPEST • Peter Hajduček • Footshop opened its • Footshop became the • Footshop opened the • Footshop opened th
Slide 9: Brief History
FOOTSHOP GROUP INTRODUCTION > BRIEF HISTORY FOOTSHOP2 2019 2020 2021 2022 2023 4th and 5th B&M NEW BRAND ACQUISITON OF COMPANY PRAGUE STOCK STORE OPENING IDENTITY QUEENS REORGANISATION EXCHANGE LISTING • Footshop opened • Footshop adopted • Footshop achieved • The market situation • Footshop conclud
Slide 10: Sales Channels
FOOTSHOP GROUP INTRODUCTION > SALES CHANNELS FOOTSHOP3 "MULTICHANNEL RETAILING ENABLES US TO ADAPT FLEXIBLY TO MARKET TRENDS AND BRINGS US CLOSER TO OUR CUSTOMERS. IT ALSO MAKES US MORE ATTRACTIVE IN THE EYES OF OUR SUPPLIERS." FOOTSHOP CORE FOOTSHOP RELEASES • Footshop focuses primarily on selling
Slide 11: B&M Stores
FOOTSHOP GROUP INTRODUCTION > B&M STORES FOOTSHOP4 PRAGUcE BUCHARbEST BUDAPESTi BRATISLAVAd
Slide 12: Markets
FOOTSHOP GROUP INTRODUCTION > MARKETS FOOTSHOP1 "FOOTSHOP OPERATES AS A TRULY EUROPEAN COMPANY, WITH THE MAJORITY OF ITS REVENUE GENERATED IN CENTRAL EUROPE." GEOGRAPHIC POSITION IN CEE REGION • In several markets, including the Czech Republic, Footshop is the #1 player in the premium streetwear seg
Slide 13: Market Segmentation and Brands' Results
FOOTSHOP GROUP INTRODUCTION > MARKET SEGMENTATION AND BRANDS' RESULTS FOOTSHOP3 "IN THE DYNAMIC SNEAKER INDUSTRY, FOOTSHOP'S AGILE APPROACH TO TRACKING MARKET TRENDS AND NAVIGATING SNEAKER TIERS POSITIONS IT AS AN ADAPTIVE PLAYER, READY TO EMBRACE THE RAPID GROWTH OF SMALLER BRANDS." MARKET SEGMENTA
Slide 14: Our Portfolio
FOOTSHOP GROUP INTRODUCTION > OUR PORTFOLIO FOOTSHOP5 "AT FOOTSHOP, FOOTWEAR ACCOUNTS FOR MAJORITY OF THE PORTFOLIO, WHEREAS AT QUEENS, THE PORTFOLIO IS MORE DIVERSIFIED BETWEEN FOOTWEAR AND CLOTHING." FOOTSHOP HAS A STRATEGIC POSITION • In H1 FY24, Footshop expanded its portfolio with exciting IN T
Slide 15: Our Portfolio: Product Offer
FOOTSHOP GROUP INTRODUCTION > OUR PORTFOLIO FOOTSHOP3 "WE MAINTAIN OUR FOCUS ON PREMIUM PRODUCTS WHILE INCREASING THE SHARE OF FOOTWEAR IN OUR PRODUCT PORTFOLIO, RESULTING IN GROWING AOV." # products of Footshop Core on offer in K CZK DEVELOPMENT OF PRODUCT OFFER Footwear Clothing Accessories % of F
Slide 16: Customers
FOOTSHOP GROUP INTRODUCTION > CUSTOMERS FOOTSHOP2 "THE TOTAL CUSTOMER BASE CONTINUES TO GROW, WITH A SIGNIFICANT PORTION CONSISTING OF LOYAL CUSTOMERS." Development of Footshop Core customer base (thousands) FOOTSHOP CORE CUSTOMER BASE New Regular Loyal Failed % of Loyal • 621k unique online custome
Slide 17: Macroeconomic Environment
MACROECONOMIC ENVjIRONMENT 17
Slide 18: E-commerce Market
MACROECONOMIC ENVIRONMENT > E-COMMERCE MARKET FOOTSHOP3 "WHILE THE CZECH E-COMMERCE REPORTS MODEST GROWTH IN 2024, OUR CORE BUSINESS SIGNIFICANTLY OUTPERFORMED THE MARKET, WHICH IS IN LINE WITH LONG TERM AMBITIONS OF THE EUROPEAN FASHION E-COMMERCE MARKET." EUROPEAN ONLINE MARKET IS EXPECTED TO GROW
Slide 19: FX Rate Effect
MACROECONOMIC ENVIRONMENT > FX RATE EFFECT FOOTSHOP1 "RECENT FAVORABLE SHIFTS IN THE EUR/CZK FX RATE TRENDS BOOST FOOTSHOP'S PROFITABILITY, IMPROVING ITS OUTLOOK." IMPACT OF FIXED FX RATES ON MARGIN AND Model Example - products sold to Eurozone COMPETITIVENESS Price list FX rate given by Supplier in
Slide 20: Inflation and Interest Rate Effects
MACROECONOMIC ENVIRONMENT > INFLATION AND INTEREST RATE EFFECTS FOOTSHOP3 "FOOTSHOP SUSTAINS BUSINESS RESILIENCE AS INFLATION STABILIZES AND GAINS FROM CURRENCY CHANGE IN LOANS." STRONG DEMAND AND STABLE COSTS AMID FOOTSHOP IS PROFITING FROM TRANSITIONING STABILIZED INFLATION BANK LOANS TO EUR • Des
Slide 21: Financial Results
FINANCIAL RESoULTS CONSOLIDATED RESULTS FOR THE FOOTSHOP GROUP PREPARED IN ACCORDANCE WITH IFRS STANDARDS 21
Slide 22: Financial Results
FINANCIAL RESULTS FOOTSHOP1 644M CZK Net Revenue H1 FY23: 476M CZK Δ y/y: +35% 282M CZK 30M CZK 55M CZK Gross Margin Operating Profit EBITDA H1 FY23: 193M CZK H1 FY23: -6M CZK H1 FY23: 18M CZK Δ y/y: +46% Δ y/y: +36M CZK Δ y/y: +37M CZK 43.7% 4.7% 8.5% Gross Margin Operating Profit EBITDA Margin H1
Slide 23: Consolidated Statement of Financial Position
FINANCIAL RESULTS > CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOOTSHOP1 "CAREFUL STOCK MANAGEMENT ALLOWS US TO GROW THE TOP-LINE SIGNIFICANTLY FASTER THAN THE INCREASE IN INVENTORY LEVELS. ADDITIONALLY, WE MAINTAIN A VERY HEALTHY STOCK." CZK millions 6.2023 6.2024 % change THE TOTAL ASSET VALUE S
Slide 24: Consolidated Statement of Financial Position: Equity and Liabilities
FINANCIAL RESULTS > CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOOTSHOP1 "BY SECURING NEW CAPITAL, FOOTSHOP ELIMINATED NON-BANK FINANCING AND SIGNIFICANTLY STRENGTHENED ITS FINANCIAL POSITION BY REDUCING DEBT, WITH BORROWINGS DECREASING BY 63%." CZK millions 6.2023 6.2024 % change STRENGTHENED FIN
Slide 25: Warrants
FINANCIAL RESULTS > CONSOLIDATED STATEMENT OF FINANCIAL POSITION > WARRANTS FOOTSHOP1 "THE ISSUANCE OF WARRANTS, CLASSIFIED AS FINANCIAL LIABILITIES, INTRODUCES COMPLEXITY WITH ONGOING REVALUATION, WHILE OFFERING POTENTIAL FUTURE SHARE CONVERSION UNDER SPECIFIC CONDITIONS." WARRANTS • As part of the
Slide 26: Sponsor Shares
FINANCIAL RESULTS > CONSOLIDATED STATEMENT OF FINANCIAL POSITION > SPONSOR SHARES FOOTSHOP1 "SPONSOR SHARES, CLASSIFIED AS FINANCIAL LIABILITIES, INCLUDE A CONVERSION OPTION, WITH MANDATORY CONVERSIONS TRIGGERED BY SPECIFIC SHARE PRICE THRESHOLDS." SPONSOR SHARES • The Group designated the sponsor s
Slide 27: Consolidated Statement of Profit or Loss
FINANCIAL RESULTS > CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOOTSHOP1 "WHILE CZECH E-COMMERCE EXPERIENCED ONLY MODEST GROWTH IN THE FIRST HALF OF 2024, FOOTSHOP ACHIEVED AN IMPRESSIVE 35% Y/Y REVENUE GROWTH AND OUTPERFORMED THE MARKET. FURTHERMORE, GROSS MARGIN INCREASED BY 3.2PP." CZK millions H1
Slide 28: Order Volume, Return Rate and AOV
FINANCIAL RESULTS > CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOOTSHOP1 "FOOTSHOP ACHIEVED A 23% INCREASE IN TOTAL ORDER VOLUME, WITH AOV RISING ACROSS BOTH FOOTSHOP AND QUEENS, DRIVEN BY PRICE GROWTH AND CATEGORY DISTRIBUTION." Overall return rate for H1 of respective year RETURN RATE • 1 The Return
Slide 29: Operating Costs as Share of Revenue
FINANCIAL RESULTS > CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOOTSHOP1 "DESPITE STRONG TOP-LINE GROWTH, FOOTSHOP REMAINS FOCUSED ON OPERATIONAL EFFICIENCY, REDUCING THE PERCENTAGE OF REVENUE SPENT ON MARKETING AND LOGISTICS, ITS LARGEST VARIABLE EXPENSES." CZK millions H1 FY23 H1 FY24 % change THE M
Slide 30: Finance Costs and Remeasurement
FINANCIAL RESULTS > CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOOTSHOP1 "THE NEWLY ACQUIRED CAPITAL WAS USED TO REDUCE FINANCIAL EXPENSES. HOWEVER, THE TRANSACTION'S STRUCTURE ADDED COMPLEXITY, REQUIRING REGULAR REVALUATION OF FINANCIAL INSTRUMENTS INVOLVED IN THE SETTLEMENT." CZK millions H1 FY23 H1
Slide 31: EBITDA Development
FINANCIAL RESULTS > CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOOTSHOP1 "AS A RESULT OF A 35% INCREASE IN TOP-LINE, A 3.2PP RISE IN GROSS MARGIN, AND BOTTOM-LINE EFFICIENCY IMPROVEMENTS, PROFITABILITY MEASURED BY EBITDA REACHED CZK 55M, REPRESENTING AN EBITDA MARGIN OF 8.5%." CZK millions H1 FY23 H1
Slide 32: Consolidated Statement of Cash Flows
FINANCIAL RESULTS > CONSOLIDATED STATEMENT OF CASH FLOWS FOOTSHOP1 "FOOTSHOP ACHIEVED SIGNIFICANT INCREASE IN OPERATING CASH FLOW DRIVEN BY STRONGER PROFITABILITY." CZK millions H1 FY23 H1 FY24 CASH FLOW DEVELOPMENT Operating Cash Flow 23.0 41.3 1• Operating Cash Flow: Net cash from operating activi
Slide 33: Guidance for 2024
GUIDANCE oFOR 2024 33
Slide 34: Raised 2024 Guidance
GUIDANCE FOR 2024 FOOTSHOP1 "FOOTSHOP RAISES ITS 2024 GUIDANCE TO CZK 1,250-1,350 MILLION IN REVENUE AND CZK 90-110 MILLION IN EBITDA DUE TO STRONG PERFORMANCE." Revenue guidance range in CZK millions ORIGINAL AND REVISED GUIDANCE 1 • Footshop initially projected its 2024 revenues to be in the range
Slide 35: Key Events
KEY EVENTSo 35
Slide 36: H1 FY24 Targets Revisited
KEY EVENTS > H1 FY24 TARGETS REVISITED FOOTSHOP4 H1 FY24 TARGETS REVISITED Sales Channels Inventory Queens A) 100K downloads of our Mobile App with a A) Private Label to generate 15M+ CZK A) Queens Rebranding with the new logo score of 4,5+ and share on Revenue of at Revenue in 2024 with a Margin at
Slide 37: Key Events
KEY EVENTS FOOTSHOP4 1 ACTIVE CATEGORY LAUNCH Footshop's new Active category is where running, hiking, and other sports meet style. We aim to inspire our existing customers to embrace a healthy lifestyle and stay active while expanding our brand portfolio & customer base. 2 POLAND MARKET EXPANSION P
Slide 38: Active Category Launch
KEY EVENTS > ACTIVE CATEGORY LAUNCH FOOTSHOP6 "WELCOME1 TO THE FUTURE OF STREETWEAR – WHERE STAYING FIT IS THE NEW COOL" Footshop2 Active is where running, hiking, and other sports activities meet style. We aim to inspire our existing customers to embrace a healthy lifestyle and stay active while ex
Slide 39: Poland Expansion
KEY EVENTS > POLAND EXPANSION FOOTSHOP5 "FOCUS ON POLAND PAID OFF. IN H1 POLAND BECAME NO.3 MARKET IN FOOTSHOP. THE NEW & BIGGEST FOOTSHOP STORE WILL BE OPENED IN WARSAW THIS NOVEMBER. PL MARKET EXPANSION ALSO STRENGTHENED OUR RELATIONSHIP WITH ADIDAS." POLAND EXPANSION • Poland becoming the no.3 ma
Slide 40: BAPE Launch & Exclusive Inventory
KEY EVENTS > BAPE LAUNCH & EXCLUSIVE INVENTORY FOOTSHOP5 "BAPE REPRESENTS THE VERY UPPER ECHELON OF STREETWEAR. FOOTSHOP INTRODUCES THIS ICONIC LABEL AS CEE EXCLUSIVE. NEW INVENTORY ADDITIONS LIKE OFF WHITE, FEAR OF GOD OR PALM ANGELS BRING GLOBAL STREET CULTURE INFLUENCE TO OUR CURATED SNEAKER AND
Slide 41: Colabs & Private Label
KEY EVENTS > COLABS & PRIVATE LABEL FOOTSHOP3 "H1 WAS DEFINED BY FOOTSHOP X ADIDAS SNEAKER COLAB, DOMINATING THE EURO STYLE CUP COMPETITON AND MULITPLE PRIVATE LABEL DROPS - INCLUDING BOTAS X FOOTSHOP FOOTWEAR COLLECTION FEATURING BESPOKE MODEL IN 11 VERSIONS " • H1 Private label projects highlight
Slide 42: Appendix
APPENDIXp 42
Slide 43: Key Terminology (1/2)
FOOTSHOP2 KEY TERMINOLOGY (1/2) Term Explanation Adidas Consortium a special division or program within the Adidas brand that focuses on collaborations with external partners, including fashion designers, sneaker boutiques, artists, and other brands; the goal of Adidas Consortium is to create unique
Slide 44: Key Terminology (2/2)
FOOTSHOP2 KEY TERMINOLOGY (2/2) Term Explanation Gross Margin (Net Revenue - Cost of Goods Sold) / Net Revenue * 100% H1 half-year (january-june) k thousands M million Net Revenue Total Revenue after substracting returns, allowances and discounts, including Revenue from Shipping PP A percentage poin
Slide 45: Methodology
FOOTSHOP2 METHODOLOGY Slide no. / Chart (Table) Title Explanation 9 / % Share of Sales Channels for H1 % Share on NOT consolidated Revenue (intercompany transactions are NOT eliminated). FY23 vs. H1 FY24 11 / H1 FY24 Net Revenue % Share on NOT consolidated Revenue (intercompany transactions are NOT
Slide 46: Sources
FOOTSHOP2 SOURCES 1. “Fashion - Europe | Statista Market Forecast.” Statista, www.statista.com/outlook/dmo/ecommerce/fashion/europe?currency=EUR. 2. “ECommerce - Europe | Statista Market Forecast.” Statista, www.statista.com/outlook/dmo/ecommerce/europe?currency=EUR. 3. “Heureka eCommerce Insider |
Slide 47: Thank You
THANK YOUp FEEL FREE TO CONTACT US: investor.relations@footshop.cz 47