PRESS: Online store Lamoda reaches operating break-even Jan–Mar

MOSCOW, May 27 (PRIME) -- Online store Lamoda reached an operating break-even point upon results of January–March, but a gap by turnover from its main competitor, Wildberries, is becoming almost unbridgeable, business daily Kommersant reported on Monday.

Lamoda’s co-founder and CEO Florian Jansen attributed the result to a wider portfolio of mass brands, including Oysho, Pull & Bear, and Stradivarius from group Inditex, as well as to the launch of new categories, development of the marketplace, business-to-business services, optimization of marketing and delivery.

The net merchandise value, including via the marketplace, spiked 23.5% on the year to 8 billion rubles in January–March. Revenue was at 6 billion rubles. Gross profit rose 3.3% to 2.24 billion rubles.

Researcher Infoline-Analytics head Mikhail Burmistrov said Lamoda’s results for January–March significantly improved on the quarter. The company has no other choice but moving to the operating break-even point and reducing dependence on external funding, but leadership on the market, in view of growth rates of Wildberries, is out of the question, he said.

Lamoda works in Russia, Belarus, Kazakhstan, and Ukraine.

(64.6106 rubles – U.S. $1)

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