"During the second quarter we have focused on reducing inventory levels and carried out activities with an aim to strengthen the cash position. As a result of these activities we have seen significantly reduced inventory and also an improved cash position of 25 MSEK in spite of a weak profit development. These activities have also led to a natural decrease in turnover and a downward pressure on gross margins. The weak development in our main markets has continued to prevail during the second quarter which has put additional pressure on margins. We expect improved margins for the two final quarters of the current fiscal year," says Magnus Håkansson, CEO of RNB Retail and Brands.
The cash improving activities have also led to that the operating financing from Konsumentföreningen Stockholm of 150 MSEK still is not drawn at all and will not be near term. During the first two quarters the termination of the Norwegian JC operation has almost been finalized. This has burdened the groups profit with costs amounting to 55 MSEK. Remaining costs for the termination consists of operating losses for April and May which will amount to approximately 4 MSEK and be included in the profit shown for the third quarter. The business area Brothers & Sisters showed a significantly negative development in sales during February which to a major part is attributable to supply problems as well as a margin pressure resulting from increased discounting.
"The reduction in sales in the Brothers & Sisters business area during the second quarter is to a significant part attributable to problems of a nonrecurring nature and we already see that supply to the Brothers outlets now again is working as normal. The extensive and group wide change program which aims to improve profit proceeds according to plans," says Magnus Håkansson.
Other information regarding the second quarter 2011/2012 will be presented in the quarterly report on the 30th of March 2012.
For further questions please contact:
Magnus Håkansson, President and CEO of RNB, phone: +46 8 410 520 02, mobile: +46 768 87 20 02, e-mail: firstname.lastname@example.org
RNB RETAIL AND BRANDS owns, operates and develops fashion, clothing, accessories, jewelry and cosmetics stores that focus on providing excellent service and a world-class shopping experience. Sales are mainly conducted in Scandinavia through the three store concepts Brothers & Sisters, JC and Polarn O. Pyret, as well as through shops in the department stores NK in Stockholm and Gothenburg. RNB RETAIL AND BRANDS has operation in 10 countries. RNB RETAIL AND BRANDS has been listed on the OMX Nordic Exchange since 2001.
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Source: RNB Retail and Brands AB via Thomson Reuters ONE