Major shareholder GENUI announced the sale of its remaining stake of 38.5% to The Platform Group. The purchase price was not disclosed.

The Platform Group owns and operates a conglomerate of online platforms in Europe across 16 verticals including fashion (schuhe24, taschen24), home & living (Möbelfirst), cycling (bike-angebot), health care (Doc.Green) and more. In FY 22, the company generated € ~250m GMV (+48% yoy), € ~15m EBITDA and has connected c. 4,000 brick-and-mortar retailers to its scalable ecosystem. Retail partners benefit from access to online consumers and full-range platform support including pricing, payment, logistics, data analysis and efficient (online-) marketing solutions. Online consumers enjoy a broad product assortment, high availability, attractive prices and best-in-class logistics.

With that, fashionette’s new major shareholder looks set to play an active role shaping fashionette’s growth trajectory by transferring its eCom know-how with regards to tech, data, marketing and logistics. fashionette should benefit from cross-selling across The Platform Group’s ecosystem and gaining quick access to international markets. In fact, CEO Benner aims to establish a capital-light online luxury platform, thanks to attractive unit economics in the category and catch-up potential with regards to online penetration. All of this is seen to lift meaningful synergies at fashionette, which should support the company’s profitability in the mid-term.

Overall, the move fully underpins our positive view on the stock. The recent share price underperformance compared to peers looks unjustified considering fashionette’s solid Q3 performance (22% organic growth yoy, € 0.8m FCF). While eCom stocks have bounced back, fashionette is still trading at 0.6x book value (0.8x ex goodwill) despite generating solid organic growth this year and being slightly profitable on adj. EBITDA. An impairment of the goodwill related to Brandfield (€ 11m) looks unlikely at this stage given that Brandfield’s operating performance is still robust (Q3: ~20% organic growth yoy, 33% new customers yoy). Moreover, financing is not seen to be an issue as financial liabilities mature in 2026E and do not bear any covenants.

Hence, the stock should catch-up to peers rather sooner than later and we confirm BUY with an unchanged PT of € 22.00, based on DCF.