Spartoo Cuts Debt Sharply Despite Revenue Dip

French footwear and apparel e-tailer Spartoo reported adjusted revenue of €59.6 million for the first half of the current fiscal year, marking an 8.7% decrease. Despite the decline in revenue, the group demonstrated strong financial management, generating €5.7 million in operating cash flow over a 12-month period and successfully reducing its overall debt.

Breaking down the H1 performance, Spartoo's sales in its domestic market, France, saw a 13.9% reduction, settling at €48.9 million. In contrast, its international operations posted a modest gain of 1.2%, reaching €34.5 million. The company's adjusted EBITDA stood at €1.3 million. CEO Boris Saragaglia highlighted the positive shift in profitability, stating, "Despite a continually troubled market environment, we managed to increase EBIT by €1.5 million, bringing it in positive territory, while reducing our net debt by more than 44% over the period." He further outlined the company's forward-looking goal: "Our goal for fiscal year 2025 will be to continue to adapt to the current market context, in order to generate a positive free cash flow."

Spartoo has strategically realigned its focus towards optimizing investments and costs, alongside a concerted effort to reduce inventory levels. This strategic pivot aims to enhance overall profitability amidst the challenging headwinds currently faced by the apparel and footwear markets. Reinforcing its financial prudence, the group reported its debt at €6.8 million as of June 30, 2025, representing a significant €5.4 million decrease compared to the figure at the end of H1 2024.

In its core online business, Spartoo’s diverse range of footwear, apparel, handbags, and accessories comprises an impressive 1.6 million unique items available across Europe. During H1, the average purchasing basket for these items, excluding returns, saw a 2% increase, reaching €91. The company's logistics arm, TooPost, which offers shipping solutions to third-party e-merchants, expanded its client base by attracting 31 new partners, contributing a business volume of €9.6 million – a 3.2% rise. Concurrently, Spartoo has streamlined its physical retail presence, closing 22 stores, including 10 directly owned outlets, and now operates 43 physical stores, with 39 of these being department store concessions.

Looking back at its full fiscal year 2024 performance, Spartoo, which serves an active customer base of 1.4 million, recorded a business volume of €184.7 million, a 7.7% decrease, and generated a total revenue of €130.5 million for that period.