Footway, the Swedish e-commerce site, continues to grow with increased sales and good profitability, but its growth has slowed. Sales in the fourth quarter amounted to SEK 308.4 million (€29.3m-$31.7m), an increase of 16.7 percent. They grew by 30.4 percent for the year to SEK 990.9 million (€94.0m-$101.9m).
In its annual report, the company writes that sales were adversely affected by mild winter weather and by “capacity problems at the company’s third-party supplier of warehousing and logistics,” as a result of which 6.9 percent of stock footwear models went unsold, according to the report.
The company expects to have lost sales of SEK 35 million (€3.3m-$3.6m) for the full year, including SEK 12 million (€1.1m-$1.2m) in the fourth quarter, due to these capacity problems. In addition, the comparative figure from the fourth quarter of 2018 was strong, with growth of 71.5 percent in 2018, which affected the quarterly comparison.
Footway continues to take strong strides abroad. Outside the Nordic region, its sales amounted to SEK 83.2 million (€7.9m-$8.6m), an increase of 81.7 percent. Investments in new markets continued, and during the last quarter, the company launched its online platform in a further 13 markets outside the Nordic region. Growth outside the Nordic region represented 84.8 per cent of the company’s total sales growth during the quarter. In spite of the capacity problems, the company’s operating profit (Ebit) improved in the latest quarter, reaching SEK 12.0 million (€1.1m-$1.2m). The number of visitors to its online stores increased to 15 million, compared with 12 million a year earlier, which led to 234,000 new customers during the quarter.