The Swedish shoe manufacturer Flattered was hard-hit by the first wave of the coronavirus pandemic last year, but rapidly managed to recover and significantly increase sales during the remainder of the year.
As of the spring of 2020, the company struggled with cash flows and became deeply concerned about its future. In response, management decided to introduce measures to support sales, including 20 percent discount offers on selected product categories on an ongoing basis.
The company also launched a small capital increase to shore up its balance sheet, and at the end of last summer growth had picked up. In 2020, sales almost doubled to SEK 48 million (€4.7m-$5.6m) from SEK 25 million (€2.5m-$2.9m) the previous year, while earnings stood at SEK 2 million (€0.20m-$0.23m), up from a loss of SEK 6 million (€0.6m-$0.7m) in 2019.
Flattered sells the majority of its products - about 75 percent - to end consumers through its own online shop, while the remainder is sold through resellers, both online and brick-and-mortar retailers.
Sales are largely driven by advertising on social media, mainly Facebook and Instagram. Germany is the company’s largest market.
Flattered was established in Stockholm in 2013 as an affordable premium brand by Gustav Lidén, Hanna Kwiatkowska and two other partners. It is currently run by Lidén, who together with Kwiatkowska owns 39 percent of the company.
At the end of 2018, Flattered raised SEK 15 million in venture capital from the investment company Spiltan, which received 36 percent of the shares on the basis of a total valuation of approximately SEK 40 million, becoming the second largest shareholder.