Troubled in Quarter for Swedish
During the first quarter, the fashion group Retail and Brands, RNB, left reconstructions in the Swedish subsidiaries behind and can now look ahead. However, the Group sees no direct brightening and predicts that at least the current quarter and also the third quarter will be negatively affected by the ongoing corona pandemic.
In the report for the first quarter, however, Polarn O. Pyret is highlighted as the jewel in the crown, while it is much more courageous for Brothers, the operations at the NK department stores and for the e-commerce site Man of a kind.
The Group’s sales for the first quarter, September to November, in the broken financial year amounted to SEK 400 million (573). Operating profit amounted to SEK 213 million (12). Profit after tax amounted to SEK 189 million (-4).
Comparable sales in all countries for the Group decreased by -17.9 percent (-9.0). In Sweden, comparable sales decreased by -21.3 percent (-8.5). The Group has a strong focus on e-commerce and the e-commerce share of total sales per rolling twelve months increased in the quarter and now amounts to 19 percent with Polarn O. Pyret at the top of 40 percent in e-commerce sales.
Net sales for the children’s clothing chain Polarn O. Pyret amounted to SEK 187 million (214) during the quarter. Operating profit amounted to SEK 165 million (28), including a piecework profit of SEK 139 million.
The children’s clothing chain’s sales in comparable own units for all countries increased by 3.5 percent compared with the previous year, calculated in Swedish kronor. E-commerce increased by 58 percent in the quarter and the e-commerce share increased steadily during the quarter. Comparable e-commerce increased by 46 percent.
During the quarter, the franchisee in the UK opened ten stores at the House of Fraser department store in the UK for the children’s clothing chain.
“Polarn O. Pyret has shown its strength in improving its comparable sales through an increase in e-commerce throughout the quarter where the share was over 50 percent in November, which resulted in an operating profit that was better than last year,” the company writes in the quarterly report .
Net sales for Brothers amounted to SEK 56 million (117). Operating profit amounted to SEK 80 million (-15). Sales in comparable units in Sweden decreased by – 37.8 percent calculated in Swedish kronor.
For Brothers, too, the e-commerce share increased and amounted to 16 percent in the quarter compared with the previous year of 8 percent.
The Group’s operations at NK are very sluggish and the weakest is sales at the department store in Stockholm. Sales of beauty products are better than fashion sales. Net sales within the Departments & Stores business area amounted to SEK 157 million (242), which is a decrease of -35.0 percent. Operating profit amounted to SEK 161 million (15).
“On October 29, sales plummeted and November showed a dramatic decrease in sales,” the group writes in the report.
Despite the Group’s focus on e-commerce, the company notes that e-commerce site Man of Kind’s sales were weak. The positive thing is that the return rate decreased