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Replay’s parent group enjoys 21 percent annual EBITDA leap

By Angela Gonzalez-Rodriguez

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Management |REPORT

New York – Fashion Box, the parent company to fashion brand Replay, has posted 237.9 million euro in revenues over 2018, enjoying a 21 percent jump in earnings before interest, taxes, and amortization (EBITDA), reaching 21.7 million euro.

As advanced by the fashion company’s management, the group is set to accelerate its pace of growth in 2019. Fashion Box which will define itself as an internationally-oriented company, makes 85 percent of its total sales outside its national market.

The Italian retailer also fared well in Europe, where it enjoyed double-digit organic growth in the wholesale channel. The latter was especially strong in Northern and Central Europe, thanks to a very positive sell-through in the last few seasons.

Matteo Sinigaglia, CEO of Fashion Box SpA, commented the result, sharing his positive outlook for the near future. “The positive results of 2018 are the reward of a long-term strategy based on the constant attention paid to the quality of our products and our ability to generate a steady stream of innovative projects. This goes hand in hand with an effective distribution strategy, implemented directly and through carefully selected partners. We will be aiming especially on the development of new markets, together with the strengthening of the existing ones in order to continue an organic and healthy growth.”

India and Japan Replay’s key markets for growth

Aimed at reinforcing its international expansion, Fashion Box entered into a strategic partnership arrangement with Reliance Brands Limited last year. The goal was securing the distribution of its collections of Replay casual wear, footwear, and accessories in India.

The agreement will be based on a multi-channel distribution, with retail stores – with the opening of 2 flagship stores in Delhi and Mumbai in the next few months, as well as mono- brand stores and shops-in-shop in the most prestigious malls of the country – and through key e-commerce players in India, explained the company in a corporate release.

On a similar note, Japan has continued to attract attention for its selective distribution in the main local department stores.

Similarly than to its India’s operation, ashion Box entered into a joint venture last December with Fashion Company for the distribution of the clothing, footwear and accessory lines in some of the main markets of Eastern Europe. The Joint Venture, majority-owned by Fashion Box, will become operational in Fall/Winter 2019 and expects to develop markets for the Replay products in Bosnia and Herzegovina, Serbia, Kosovo, Macedonia, Montenegro and Romania, both through the opening of 8 mono-brand stores by 2021 and the development of the wholesale channel, further explained the fashion group.

Replay to focus on Latin America for further international expansion

Although timidly, Latin America starts to shine as the next growth region for Replay. Brazil is currently the main market for the brand in Latin America. Another important market is Colombia, where, in addition to the two mono-brand stores opened in Bogota and Medellin at the end of last year, the Company will inaugurate 5 retail stores by 2022 and will continue with a wholesale distribution, which is already operational, serving multi-brand stores in strategic locations throughout the country and high-level accounts. Replay is also present in Paraguay.

Image:Replay Jeans, Replay official website

Fashion Box
Replay