In Q3 2024, Rugvista experienced a decline in net revenue and operating profit compared to the same period last year. While the gross margin remained relatively stable, the company saw a decrease in both organic growth and operating margin. Despite these challenges, Rugvista continues to navigate a period of cautious consumer spending.
Photo: Rugvista.
Ebba Ljungerud, Rugvista CEO says: 'During the third quarter, household purchasing power in Europe remained weak, although we saw early signs of improved consumer confidence towards the end of the quarter, particularly in the Nordics, and mainly in Sweden. This has not yet translated into increased sales, and the period was still characterized by cautious, price-sensitive consumers.'
Ebba continues: 'Operating profit amounted to SEK 9.0 (18.6) million, corresponding to an operating margin of 6.2% (11.7%). The lower operating margin was mainly due to the lower net revenue and increased personnel costs, partly related to the costs for the departing CEO.
'We are focused and prepared for the upcoming high season in Q4, with good inventory levels to ensure we can meet customer demand. Additionally, we continue to strengthen our customer journey initiatives, aiming to provide an exceptional shopping experience that fosters loyalty and repeat purchases across our various rug categories.
'As CEO since October 1, I look forward to leading Rugvista forward toward delivering on our vision and goals alongside our strong and ambitious teams. We have a solid financial position with net cash of SEK 137 million at the end of the period, enabling us to execute our strategic investments. I would like to extend my warmest thanks to all employees for their dedication and hard work, and to our shareholders for your continued trust and support.'
About Rugvista
Rugvista is one of Europe's leading "direct-to-consumer" e-commerce players and markets carpets and rugs through its own web-shops available in 20 different languages using the brands Rugvista and CarpetVista. The company was founded 2005 and offers a wide and relevant selection of high-quality design- and traditional carpets and rugs at attractive prices. Rugvista offers its EU based customers free deliveries and returns free of charge.
More information:
Rugvista
www.rugvistagroup.com