Would you like to know all the news of the company and the footwear market? Then kindly subscribe to our news posting.
In 2016 Obuv Rossii’s Revenues Increased by 11% — up to RUB 10 Bln
The Obuv Rossii Group of Companies, which is one of the TOP-3 biggest shoe retailers in the country, balances its accounts for 2016 according to Russian Accounting Standards (RAS).
• Revenues of the Company for the reporting period increased by 11% and made up 10 bln rubles.
• Net profit — 1.3 bln rubles, growth as compared to 2015 — 0.3%.
• EBITDA grew by 7% and made up 2.4 bln rubles.
• EBITDA profitability — 24% (in 2015 — 25%).
• Like-for-like sales for all chains in the Group increased by 9.4%.
• Retail sales measured in pairs grew by 10%.
• Sale of related products (taking into account clothes) increased by 16.7 % — up to 2.25 bln rub.
The increase in main financial indices became possible due to the measures the Company took in 2015-2016. Obuv Rossii adjusted its collection to the altered consumer preferences: it increased the share of classical shoes of popular colours, decreased the number of more expensive designer models. Taking into account that the casual style is becoming more popular, Obuv Rossii started to expand the range of such footwear including footwear of own manufacture, under the S-TEP and all.go brands. In 2016, the Company introduced a new trademark to the market, Medelista — footwear of high quality artificial materials with more affordable prices.
Obuv Rossii continues to develop the line of related products, the assortment of which includes more than 4,500 SKU: bags, haberdashery, hats and accessories, hosiery products, shoe care products, household goods, and a special line of foot care products. Significant results were achieved also in selling outdoor clothing: the growth in 2016 was 42%. Diversification of the assortment makes it possible for Obuv Rossii to increase its sales and the average basket size, to induce multiple purchases and increase customer loyalty. According to the results of 2016, the share of related products (with the consideration of clothes) in the Company’s trade receipts was 27.3%.
In 2016, Obuv Rossii improved its system of financial services: it issued prepaid Arifmetika MasterCards and started to provide loans for the cards to the customers. Currently, the monthly volume of credits to the Arifmetika MasterCards exceeds 150 mln rubles, and the volume of payments for the services at the cash registers in retail outlets amounts on average to 100 mln rubles. Total, more than 800 Arifmetika cards have been issued.
In 2016, the Company made a number of important steps to develop its production: in summer, the capacity of the cutting and sewing workshops were increased due to purchasing of seven Orisol robots; a line for the production of special footwear started to work; in autumn, Obuv Rossii expanded its manufacturing facilities 1.5 times; in winter, a training centre was opened jointly with Orisol – the first centre in Russia and CIS countries.