Stylepit lost millions of revenue after name change

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The name change from SmartGuy was expensive. Danish fashion giant Stylepit reports a negative result of -19.7 million DKK on the bottom line and declining sales by 19.3 percent. Now the management has downgraded its outlook for the year.

The interim report is an improvement compared to minus 65.4 million for the same period last year.

In the latest annual report Stylepit came out with a deficit of 129.7 million DKK and a turnover of 471.1 million DKK.

”Group Management has focused on restoring and enhancing competitiveness in order to ensure stabilization and growth in market share in the Nordic home markets,” writes Stylepit.

Also, the name change from SmartGuy to Stylepit has caused problems as  the level of direct online traffic is experiencing a decline in the transition year. Stylepit expects the name change will ultimately increase the traffic.

”The Group’s management expects that the year will show an overall decline of -20 percent with net sales of around 380 million DKK in the financial year 2014/15. Former expectations were based on an expected revenue decline of -15 percent. This expectation is downgraded primarily due to the ongoing name change in the Nordic region,” reports Stylepit.