Polarn O. Pyret’s sales were positive and operating income increased. RNB’s focus on e-commerce paid off – e-commerce sales as a proportion of total rolling 12-month sales were up in the quarter, totaling 19 percent. Polarn O. Pyret is at the top of the league with 40 percent e-commerce sales. The corporate restructuring in Sweden was completed in the quarter, generating restructuring gains of SEK 251 M. Operating income totaled SEK 213 M (12) in the quarter.
FIRST QUARTER, SEPTEMBER 1, 2020 – NOVEMBER 30, 2020 IN SUMMARY
- Net sales decreased to SEK 400 M (573).
- Comparable Group sales on all national markets decreased by -17.9, percent (-9.0).
- Sales for comparable units in Sweden decreased by -21.3 percent (-8.5), compared to the market downturn of -17.5 percent (-2.5).
- Operating income was SEK 213 M (12).
- Operating income, excluding reporting standard IFRS 16 and Goodwill impairment, was SEK 239 M (8).
- Profit after tax was SEK 189 M (-4).
- Earnings per share was SEK 1.86 (-0.12).
- Cash flow from operating activities was SEK 63 M (99).
EVENTS IN THE QUARTER
- The arrangements with creditors gained legal force on November 6. The agreed arrangements involve an initial payment of SEK 10,000 and 25 percent of the remainder to the companies’ creditors.
- Goodwill for Departments & Stores was written down by SEK 27 M. After this impairment, no goodwill remains in Departments & Stores.
EVENTS AFTER THE END OF THE QUARTER
- Sales in the second quarter, and probably also in the third, will remain affected by Covid-19. Hopefully, anticipated vaccinations will contribute to reducing the spread of infection, and eventually lead to restrictions being lifted, although it is hard to predict when this will materialize.