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Obuv Rossii increased its proceeds in the first quarter of 2017 by 13% - up to 2.2 bln rubles.
Obuv Rossii Group of Companies that is in the top three biggest shoe retailers in the country analyzes financial outcome in the first quarter according to RAS.
• Company’s proceeds grew by 13% as compared to the first quarter of 2016, having reached 2.2 bln rubles.
• EBITDA — 541 mln rubles; the growth as compared with the similar period of 2016 — 8%.
• EBITDA profitability — 24% (first quarter of 2016 — 25%).
Obuv Rossii achieved an increase in its key indicators in the first quarter of 2017 both due to adjustments of its collections, development of Internet sales and due to the provision of such services as selling shoes on installments. In addition, the factor that the situation on the shoe market is stabilizing has played its role. According to forecasts of Obuv Rossii’s Marketing Department, the market will slowly grow in the medium term – by 4-5% per year. It will return to the pre-crisis figures not earlier than by 2019-2020.
Obuv Rossii continues to improve its range of products. During the first quarter, the Company launched pilot sale of rubber footwear. In addition, in keeping with the changing consumer behaviour, the Company introduced a line of inexpensive related products to the Westfalika store assortment. According to the results of the first quarter, sales of related products increased by 10% having amounted to 488 mln rubles; their share in the receipts from trade reached 30%.
The Company develops the Arifmetika financial services system. To date, over 70 thousand Arifmetika MasterCards have been issued (as compared with 30 thousand at the end of 2016.) The monthly volume of credits to the cards is 200 mln rubles; the amount of payments at the cash registers is 100 mln rubles. More than half of the payments are installments due to pay credits. The average amount of a payment at a cash register is 4,500 rubles. By the end of 2017, the Company plans to increase the monthly volume of crediting to the cards two times – up to 400 mln rubles.
As for the production, in spring the Company renovated the assembly shop and united shoe assembly using cement construction, cementing and welt-sewing and high-temperature vulcanization construction methods on one site in Berdsk. It made it possible for the Company to streamline the manufacturing process, to reduce the labour costs and to increase the speed of works execution.