Apparel retailer RNB Q3'FY14 net sales touches SEK 442 M

26 Jun '14

3 min read

RNB announces the interim report for 1 September 2013 - 31 May 2014 and reports third quarter results for March 1, 2014 - May 31, 2014.

Third Quarter, March 1, 2014 - May 31, 2014 in Summary

-Net sales amounted to SEK 442 M (609, including the divested JC-operation).

-An impairment of goodwill in Brothers & Sisters of SEK 151 M has occurred.

-Operating income, excluding impairment of goodwill, amounted to SEK -15 M (-27). Operating income during the previous year included SEK -8 M in respect of JC.

-Profit before tax, excluding impairment of goodwill, amounted to SEK -18 M (-30).

-Profit after tax amounted to SEK -169 M (-30), corresponding to SEK -4.99 (-2.99) per share. The result includes an impairment of the goodwill in Brothers & Sisters of SEK 151 M after tax.

-Cash flow from operating activities amounted to SEK -22 M (-44).

-Two new stores were added during the quarter, both franchise stores of Polarn O. Pyret, one in the UK and one in Estonia.

The Period, September 1, 2013 - May 31, 2014 in Summary

On November 1, 2013, RNB Agreement entered into an agreement to divest the subsidiary JC to Denim Island AB. During the first quarter of the present year, JC's sales amounted to SEK 111 M and its operating income totaled SEK -6 M. In the 9-month period of the previous year, JC's net sales amounted to SEK 509 M and its operating income totaled SEK -318 M, of which SEK -260 M related to impairment of the trademark in the second quarter.

Net sales amounted to SEK 1,538m (1,978, including the divested operation). An impairment of goodwill in Brothers & Sisters of SEK 151 M has occurred. Operating income, excluding impairment of goodwill in Brothers & Sisters, amounted to SEK -4 M (-55).

Profit before tax, including the divested operation, amounted to SEK -13 M (-81), excluding impairment of goodwill in Brothers & Sisters of SEK 151 M and impairment of goodwill and the previous year's impairment of the JC trademark (SEK 260 M). The equivalent result excluding the divested operation amounted to SEK -7 M (-23).

Profit after tax amounted to SEK -165 M (-341), corresponding to SEK -4.86 (-85.77) per share. The result includes this year's impairment of goodwill of SEK 151 M in Brothers & Sisters and the previous year's impairment of SEK 203 M after tax of the JC trademark. Cash flow from operating activities was SEK 0 M (-85)

Apart from the takeover of 24 stores that occurred in Norway in connection with the acquistion of the Master Franchisee WAM AS, three new stores (Polarn O. Pyret) were opened during the period, of which one was a proprietary store (Sweden) and two were franchise stores (UK and Estonia).

During the first quarter, Polarn O. Pyret AB entered into an agreement to acquire 100 percent of the shares in WAM AS in Norway. WAM AS was the master franchisee of Polarn O. Pyret in Norway. Completion of the acquisition occurred on January 2, 2014.

RNB Retail and Brands

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