Obuv Rossii’s retail expansion drives growth
The unaudited consolidated revenue of the Russian footwear Group increased +11.2% to RUB7.823 billion (US$117.38 million) in the first nine months of 2018, driven by expansion of the retail chain; Obuv Rossii launched 122 own stores and entered 60 new cities and towns in the period.
In the first nine months of the year, Obuv Rossii’s like-for-like sales decreased -6.6%. Gross profit grew +14.4% to RUB4.456 billion (US$66.86 million), compared with RUB3.895 billion (US$28.44 million), while gross profit margin was 57% increasing by 3.1 percentage points.
In the third quarter of 2018, revenue increased +7.8% to RUB3.33 billion (US$49.5 million), despite like-for-like sales decreasing -8.8%, year-over-year. Gross profit grew +28.4% to RUB1.817 billion (US$27.25 million) and gross profit margin reached 54.6%, growing by +8.7 percentage points. EBITDA in the period increased +26.1% to RUB929 million (US$13.93 million), while EBITDA margin grew by 4 percentage points to 27.9%. Net profit rose in the quarter rose +57.7% to RUB508 million (US$7.62 million).
Obuv Rossii says it maintains its business development plans for this year; in 2018 the retail chain aims to grow by 150 new stores. “We will continue to improve our stock, develop new lines of related products including clothing, introduce new solutions to improve customer experience and enhance online sales”, said the Group in a statement. Obuv Rossii is the first publicly traded company in the Russian fashion retail, comprising of 685 stores in 223 cities in Russia, as well as two production facilities.