RnB, Retail and Brands’, positive profit improvement trend is continuing, especially within Brothers and Polarn o Pyret concepts.
”RNB has displayed an unbroken positive earnings trend with sales increases in six consecutive quarters,” says CEO Magnus Håkansson.
Now, the company targets Norway and China for expansion of Polarn o Pyret.
For the fourth financial quarter 2014/2015, RNB reported an operating income of 12 MSEK, an improvement of 8 MSEK compared to the preceding year. The fourth quarter 2014/2015 was the company’s sixth consecutive quarter with better sales than the market. The sales increase during the quarter for the three concepts’ comparable stores amounted to between 13 and 29 percent and to 18 percent for the Group overall.
Total net sales for the financial year amounted to 2,136 MSEK (1,917, excluding divested operation, JC), which is equivalent to an increase of 11.4 percent.
”The start of clearance sales in the fourth quarter was well-timed and was helped by weather conditions that favored shopping. The very poor vacation weather in July also generated a positive effect on our sales. Visitor numbers in our stores developed well and sales in comparable stores across the RNB Group were very strong in the fourth quarter, with an increase equivalent to 17.7 percent,” comments Magnus Håkansson.
”Trade statistics from HUI showed an increase in sales in comparable stores of 3.1 percent, which means that we outperformed the sector trend by a total of 14.6 percentage points.”
- The investments in Brothers are continuing to deliver results in terms of sales. During the fourth quarter,
sales increased in comparable proprietary stores in Sweden and Finland by 16.9 percent in total. This is now the fourth consecutive quarter in which Brothers’ sales in comparable proprietary stores have increased by at least 11 percent and about 14 percent on average,” says Magnus Håkansson.
- Sales in comparable stores for Polarn O. Pyret increased during the quarter by a record 28.8 percent. The performance was particularly strong in Sweden where the concept continues to capture market shares in relevant segments. The Norwegian operations displayed sharp sales growth and also contributed to the positive earnings trend during the quarter. RnB is in the inital phase of expanding Polarn O. Pyret’s store network in Norway.
”I can confirm that we have sucessfully managed to compensate for the significant currency effects that impacted us negatively during the past financial year. My view is that these negative effects will gradually decline starting from the second quarter 2015/2016.”
PoP will also expand its e-commerce internationally and the first launch will occure in China in November. The Chinese launch will be made using T-mall, an e-commerce portal owned by Alibaba Group.
For the first time in eight years the Board of Directors of RnB propose a dividend. The proposal means that the dividend will be 0.25 SEK per share.