RNB: All concepts performs better than the market

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The RNB Group’s sales in comparable stores increased by 15.3 percent during the second quarter.
”All three concepts performed significantly better than the market. Our customers have confirmed the success of the fall and winter collections,” comments CEO Magnus Håkansson.

RNB Retail and Brands positive trend of profit improvements is continuing – for the second quarter 2014/15, RNB reports positive operating income of 17 MSEK, an improvement of 15 million in total compared to the previous year. The second quarter 2014/2015 was the company’s fourth consecutive quarter with better sales than the market.

Sales volume during the quarter for the three concepts amounted to between 14 and 18 percent. In the interim report, CEO Magnus Håkansson comments on the concepts:

  • ”Brothers as a concept has been strengthened in a number of areas and we can now be more aggressive because of this. The coordination between the product categories and marketing can be improved further as well as product presentation and sales activities in stores. In light of this, I expect that Brothers will continue to capture market shares in the coming quarters.”
  • ”In the case of Polarn O. Pyret, we are continuing to capture market shares in relevant segments in Sweden. The campaigns during the Christmas period were effective and generated traffic to the stores. The breadth in the range was an important contributor to the strong sales during the entire period. In Norway, we are no longer seeing the negative earnings effects, which had an adverse impact on Polarn O. Pyret’s operations early in the 2014 calendar year. The operations in Holland are also improving gradually, both in terms of sales and earnings. We are in the final phase in implementing the improvements and we will see some further improvements in earnings going forward, both in the Norwegian and Dutch operations.”
  • ”The Departments & Stores business area also reported another strong quarter. We saw some decrease in traffic during the period at NK in Stockholm but the investments we made in renewal of retail space more than compensated for the reduced traffic through a higher sales rate and an increase in the average spend. Our focus on continual improvements in sales management is continuing to bear fruit, which also contributed to the positive performance in the business area.”

”Just like most of the players in our sector, we will see some negative effects on gross margins during the fall, mainly due to the strengthening of the US dollar, but also of the euro, against the Swedish krona. The sharp changes in our most important currency relationships mean that the rate of improvement in the Group’s results will moderate during the second half of 2015,” comments Magnus Håkansson.

  Brothers   Departments & Stores   Polarn O. Pyret
  Q2 14/15 Q2 13/14 Latest 12 months 2013/ 14   Q2 14/15 Q2 13/14 Latest 12 months 2013/ 14   Q2 14/15 Q2 13/14 Latest 12 months 2013/ 14
Net sales, SEK M 121 126 467 479   273 241 927 885   185 135 626 554
Operating income, excluding writedown of Goodwill, SEK M -4 -10 -16 -29   22 19 57 55   7 -1 15 6
Operating income, SEK M -4 -10 -166 -180   22 19 57 55   7 -1 15 6
Number of stores 77 81 77 79   45 45 45 45   146 141 146 143
Of which, franchise 27 27 27 27     55 50 55 52