Swedish Startup Space

Unknown e-commerce success breaks $10 million revenue barrier

Written by on January 25, 2016

Scandinavian Luxury’s sales has exploded the last three years. The company is now looking at revenues of $13.4 million, 115 million SEK, when the company closes its books in a few months.

Scandianvian Luxury AB owns a number of online stores in the Nordics and focuses on selling high end watches, like Rolex and Patek Philippe, and jewelry. The company started out with Uret.se and the jewelry site Lamastone in Sweden and has spread to Denmark, Finland, Norway and Poland since then.

The first site was launched in 2007 and the company has stayed below the media radar all along. It has also stayed out of the race for venture capital and hasn’t raised a dime so far.

“We’ve discussed it a few times but have decided that we want to grow organically and without red numbers. It’s mostly based on a gut feeling.We think that this is the best way for us to create a great company”, Joel Lagerroos, CEO of Scandinavian Luxury says.

Despite bootstrapping the company, sales have shot through the roof lately. The company had revenues of $4 million from May 1st 2012 to May 1st 2013. During the same period 2015/2016 revenues have increased to $13.4 million.

Why the boost has come now is, however, unclear.

“It’s hard to determine why. One part of it is that e-commerce in general has seen great growth the last couple of years, but we’re also getting better at what we do ourselves. There’s no trick to it really. We try to make the best choices possible as often as possible”, he says.

Another reason might be the company’s aggressive plan for reinvestments.

“If we turn a profit of say, $6.000 one month, we put that back into the company the next month and try to make another $6.000. That is, perhaps, a key factor, that we always keep both a long term and short term perspective”, Joel Lagerroos says.

The company is, as previously mentioned, present on five different markets, but whether they will expand the business is uncertain at this point. However, it might go fast if the company decides to launch elsewhere, according to Joel Lagerroos.

“There are always some thoughts circulating, but we haven’t prepared for anything. In theory, we could be up an going in another country within days, but expansions is costly in reality”, he says.

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