Both sales and profits continues to rise for furniture e-commerce site Furniturebox.
When Felix Kvick bought a majority stake in Furniturebox in the summer of 2012, the company had revenues of around 5 million SEK. The new management changed the strategy, shut down the store at Kungens kurva and focused entirely on online sales.
It turned out to be a good move.
Last year Furniturebox grew by over 70 percent and generated sales of SEK 328 million compared to 190 million in 2014. Operating profits landed at 25.7 million, a 60 percent increase compared to the year before.
“It was in line with our forecasts. We could have grown much more in terms of revenue, but with lower earnings. We’re not interested in going that way”, Felix Kvick, chairman of Furniturebox, says.
He does not comment on the current company growth, but says that the goal is to grow with sustained profitability.
“I think generally that many e-commerce companies are too focused on revenue growth and think that profitability will come eventually, but I am convinced that the winners are the companies that can grow sustainably with great profits.”
Last year, furniture and home furnishings online sales grew by 34 percent to SEK 2 billion, according to statistics from logistics company Postnord. A major challenge with selling furniture online is that customers can not touch or try out the goods. To compensate for that, Furniturebox has been working a lot with high resolution images and movies.
“Generally speaking, online furniture shopping is a growing niche but still it is a small percentage that takes place online. We are constantly trying to improve, and sales increase as more people begin to feel that this is simple and easy way to shop for furniture”, Felix Kvick says.
At the beginning of the year, furniture dealer Sleepo had its IPO on Aktietorget and Royal Design have also set its sights on the stock exchange. Furniturebox however, does not have any such plans. The company wants to continue to grow organically and is not in need of external capital.
“Our focus going forward is to improve our internal processes and work flows. We do a lot things right but at the same time, there are many things that we can get much better at. Both our internal warehouse operations and flows out to the customer can be better and more efficient. We are constantly working to improve and develop our products”, Felix Kvick says.