Fnac-Darty “very satisfied” despite volume and profit drop

For the second year in a row, French retailer Fnac-Darty suffered a drop in sales. Nevertheless, the electronics group says to be “extremely satisfied” with its performance in 2023. Why is that?

Better than the market

“We are extremely satisfied with 2023“, CFO Jean-Brieuc Le Tinier surprisingly tells LSA. Just like in 2022, turnover dropped – this time by 0.9 % to 7.9 billion euros. The clue is that Fnac-Darty is outperforming the market: while electronics sales in France fell by as much as 4.5 % last year, the retailer only sold 1.5 % less. Online sales are also holding up well, Le Tinier adds. Moreover, half of online sales were picked up in a retail outlet.

Operating profit dropped from 231 to 171 million euros, but even that was fully in line with expectations, the CEO said. Despite an “intense year”, the retailer believes the Everyday plan is working. The group remains the biggest in books and music in its French home market, but sells 47 % tech products and 20 % household appliances. Its repair service, meanwhile, is catching on: in France, Darty Max crossed the million subscriber mark and second-hand is already generating 120 million euros (+ 30 %). This gives the group enough reasons to say it is confident about the future.