Fnac Darty, a French seller of entertainment and leisure products, has recently published its results for the first half of this year. Its revenue increased 0.7 percent, compared to the same period last year. Online sales is driving this growth, as digital sales increased 8 percent.
The French retailer is known for its product range in entertainment and leisure products, as well as consumer electronics and domestic appliances. The company has a large amount of brick-and-mortar stores, but it is also an active player in French ecommerce.
Ecommerce sales represent 21% of revenue
According to the Fnac Darty Group, its revenue reached 4.48 billion euros in the first six months of the year. Its ecommerce sales now represent 21 percent of the group’s revenue.
At the same time, its gross margin increased by 60 basis points, to 28.9 percent. This reflects an improved commercial efficiency, according to the Group, which is notably thanks to the development of services and subscriptions. One of these services of the Group is Weavenn, a SaaS marketplace technology solution.
‘We are demonstrating our ability to navigate cycles’
The Group is still operating at a loss, with -56 million euros. This is linked to investments in logistics and IT. However, its EBITDA did increase slightly, with an increase of 1 percent. “We are demonstrating our ability to navigate cycles, thanks to a balanced mix of products, services and digital”, said Enrique Martinez, CEO of Fnac Darty.
Goals for 2030
The company had previously announced that it wants to operate at a margin rate of 3 percent by 2030, with a cumulative free cash flow of 1.2 billion euros. With the current results, it says that it is on track for reaching those goals. Earlier this year, it integrated with Italian seller of electronics Unieuro. Fnac Darty has just launched a new logistics hub in Rome and expects 20 million euros in synergies as a result, by 2026.
