Operating income for the full-year, before restructuring costs, amounted to SEK 50 M compared to SEK 48 M in the previous year. Brothers stood out with a continued strong performance and delivered on its promise of a positive full-year result. Departments & Stores is continuing its stable performance despite lower visitor numbers. The comprehensive conversion work relating to Polarn O. Pyret’s operations is continuing at a fast and efficient pace with the vision of achieving a clear increase in the business area’s profitability as early as 2017 and with full effect during the 2018 calendar year.
FOURTH QUARTER, JUNE 1, 2016 – AUGUST 31, 2016 IN SUMMARY
- Sales in comparable stores in Sweden decreased during the quarter by 3.7 percent, compared to the market’s increase of 0.9 percent (Swedish Retail and Wholesale Trade Research Institute (HUI)).
- Net sales totaled SEK 555 M (564), a decrease of 1.5 percent.
- Operating income before restructuring costs totaled SEK 16 M (12).
- Operating income amounted to SEK 6 M (12).
- Profit after tax amounted to SEK 10 M (6), which corresponds to SEK 0.31 (0.17) per share.
- Cash flow from operating activities was SEK 18 M (-14)
- The e-commerce concept exclusively in men’s fashion – Man of a kind – was launched in late August. The launch of Man of a kind is a step in the implementation of the Group’s long-term digital strategy.
- During the quarter, RNB entered into an agreement on possible extension of the existing business financing facility (SEK 400 M) from the company’s principal owner, Konsumentföreningen Stockholm. The agreement implies a possibility to extend the financing from 2017 to 2018 subject to unchanged contractual terms.
THE PERIOD, SEPTEMBER 1, 2015 – AUGUST 31, 2016 IN SUMMARY
- Sales in comparable stores in Sweden increased during the quarter by 1.9 percent, compared to the market’s increase of 2.6 percent (Swedish Retail and Wholesale Trade Research Institute (HUI)).
- Net sales totaled SEK 2,173 M (2,136), equivalent to an increase of 1.7 percent.
- Operating income before restructuring costs totaled SEK 50 M (48).
- Operating income amounted to SEK 36 M (48).
- Profit after tax amounted to SEK 26 M (42), which corresponds to SEK 0.76 (1.25) per share.
- Cash flow from operating activities was SEK 64 M (74).
- The Board of Directors proposes an unchanged dividend of SEK 0.25 per share (0.25).
- During the period, the closure of Polarn O. Pyret’s operations in Holland continued and the Chinese business was closed down.
- The e-commerce concept Man of a kind was launched at the end of the fourth quarter.
- The business financing facility was extended in the fourth quarter.
EVENTS AFTER THE END OF THE PERIOD
Polarn O. Pyret signed agreements with its landlords on vacating all retail space in Holland as of October 31, 2016.