Hema records 25% increase in online sales, continues international expansion
today Jun 28, 2018
The Netherlands’ Hema announced that it seen a strong growth in online sales as well as an increase in net sales and adjusted EBITDA.
In the first quarter of 2018, the retailer’s net sales increased by 2.8% to €291.4 million, compared to the same period in 2017. Adjusted EBITDA increased by 10.8% in Q1 FY18 to €19.5 million compared to Q1 FY17. Hema said that its online sales recorded a strong growth, which saw a 25% increase.
Hema’s group like-for-like consumer sales fell slightly in Q1 FY18, by 1.1% compared to the same period last year. The retailer cites unfavorable weather conditions in Europe and strikes in France as the reason for the decline.
But on a more positive note, Hema reduced the net loss in Q1 FY18 by more than 50 percent to €6.0 million, from €12.4 million in Q1 FY17.
Tjeerd Jegen, CEO at Hema, said in a press release: “Over the past quarter, we’ve seen a further improvement in our financial performance. Not only have our sales and operating result risen, but we’ve also substantially reduced our net loss. A significant element of this is due to a higher gross margin on the back of procurement improvements. We remain committed to our growth strategy and will continue to invest in our international expansion. We are particularly focused on growing our business in Germany over the next few years because our new generation stores are performing well. We will also continue to invest in e-commerce.”
In addition, Hema said that it has sold more apparel in Q1 FY18, which increased by 7.4% as well as a 2.5 percent increase for personal care products.
Internationally, Hema’s stores in France saw the largest growth in sales, an 18.9% increase in Q1 FY18, followed by a 17.5% increase in Germany. The latter saw three new store openings in the first quarter of 2018. Overall, the retailer aims to open 25 to 30 stores outside the Benelux in 2018.
In regards to the possible sale of Hema, the retailer said that it will ‘continue to explore strategic alternatives for the future of Hema with Lion Capital and will make further announcements once a determination has been made.’
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