The transformation from physical proprietary stores to e-commerce seem to have accelerated lately. Polarn O. Pyret, which has progressed the furthest in its adaptation, increased both sales and earnings. Brothers returned increased comparable sales in the quarter and is developing and adapting on the back of the experiences from PO.P. The comparable process of adaptation of Departments & Stores is progressing slowly, although Man of a kind and the upcoming equivalent brand for women’s fashion is tapping the DSE potential of the brand relations being transferred to e-commerce. The group’s total e-commerce sales increased by 50% year-on-year, and now amounts to SEK 128 M annually. The group’s concepts and products show strength in the quarter relative to the underlying market. Operating income was SEK 4 M (11) in the second quarter.
SECOND QUARTER, DECEMBER 1, 2017 – FEBRUARY 28, 2018 IN SUMMARY
- Net sales were SEK 589 m (590).
- Sales for comparable stores in Sweden decreased by -1.5 percent, outperforming the market downturn of -6.4 percent.
- Operating income was SEK 4 M (11).
- Profit after tax increased to SEK 1 M (-3).
- Earnings per share increased to SEK 0.02 (-0.08).
- Cash flow from operating activities was SEK -16 M (26).
THE PERIOD, SEPTEMBER 1, 2017 – FEBRUARY 28, 2018 IN SUMMARY
- Net sales were SEK 1,171 M (1,175).
- Sales for comparable stores in Sweden decreased by -0.5 percent, outperforming the market downturn of -4.3 percent.
- Operating income was SEK 44 M (57).
- Profit after tax was SEK 46 M (55).
- Earnings per share were SEK 1.36 (1.63).
- Cash flow from operating activities was SEK 47 M (63).
EVENTS IN AND AFTER THE QUARTER
- Polarn O. Pyret was chosen as a finalist in the Swedish Retail Awards 2018, in the categories Retail chain of the year and Loyalty program of the year.
- Brothers opened stores in Mall of Scandinavia in Stockholm and in the Bergvik shopping mall in Karlstad, Sweden.
- Departments & Stores presented extensive remodeling plans for the NK department store in Stockholm.
- Polarn O. Pyret opened a flagship store with an entirely new store concept in the PK building in central Stockholm.
- RNB issued a senior secured bond of SEK 400 M with a term of three years, which replaced previous funding.
- RNB and Wellstreet started a joint venture in the development and growth of digital services, with the aim of changing the future of retailing., with the aim of changing the future of retailing.
RNB will hold a conference on March 27, 2018 at 10.00 a.m.