CASH MANAGEMENT FOCUS RESULTS IN SHORT TERM NEGATIVE IMPACT ON GROSS MARGINS
(Thomson Reuters ONE) -
RNB RETAIL AND BRANDS communicated in the year-end report on the 27(th) of
October 2011 that a significant profit improvement would be attained during the
current fiscal year. During the second quarter full focus has been set on
reducing inventory levels with the aim to achieve a positive cash flow for the
year. This focus has led to certain negative effects on gross margins. In
conclusion this means that a significant profit improvement during the current
fiscal year will not be attained. The new management estimate is that the groups
profit will be marginally improved in comparison with previous year.
"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: magnus.hakansson(at)rnb.se
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.
CASH MANAGEMENT FOCUS RESULTS IN SHORT TERM NEGATIVE IMPACT :
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Source: RNB Retail and Brands AB via Thomson Reuters ONE
[HUG#1596721]
Unternehmensinformation / Kurzprofil:
Datum: 23.03.2012 - 08:00 Uhr
Sprache: Deutsch
News-ID 127814
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Kategorie:
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