Spartoo, the online shoe, clothing and leather goods store will soon go public, notably on Euronext Growth. It is therefore legitimate to ask whether the company’s shares can be a reliable investment or not. Can we hope for the Grenoble-based company a success similar to that of Zalando, its direct competitor, for example? If we can’t predict the future, we’ll show you where Spartoo is at right now.
Why this desire of Spartoo to be listed on the stock market?
If Spartoo has chosen to be listed on the stock exchange, it is to raise funds for its expansion, after a change in shareholding. The online footwear and clothing sector is indeed in full swing, thanks in particular to the context linked to the health crisis. Boris Saragaglia, CEO and co-founder of Spartoo, has announced that he hopes to raise at least 30 million euros through trading sites like Saxo Bank. The company wants not only to open at least 5 new stores per year, but also to expand its activities to the sale of other products such as decorative items. It has set itself a target of growth of at least 15% per year and a gross margin of 7% from 2022.
Is the failure of the André adventure a sign?
For the record, in 2019 Spartoo acquired the André company and its 70 stores across France. However, the company could not prevent the placement in receivership of its young subsidiary in 2020, hit hard by the crisis linked to Covid-19. Despite the 20 million losses caused by the operation, Boris Saragaglia, announced that the company must look ahead. Still according to him, the difficulties should not prevent the long-term vision. The company has already set out to conquer new markets, as evidenced, for example, by the recent purchase of brands such as JB Martin or Un matin d’été.
Online commerce, favorable thanks to the current context
Spartoo executives can rely on the current context, favorable to online sales, to hope for the best for the company. Indeed, if André was a failure, it is mainly because of the closure of physical stores during periods of confinement. On the contrary, the field of online sales has had a very different trajectory, both at Spartoo and among players in the sector in general. Zalando, for example, the direct competitor of Spartoo in Europe has seen a rise of more than 50% in the value of its shares in one year. It’s even better for Amazon, another player in online sales, which managed to double the value of its shares in one quarter over the previous year.