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Year-end report September 1, 2010 - August 31, 2011


October 27, 2011 - London

Fourth quarter, June 1, 2011 - August 31, 2011

·       Net sales totaled SEK 731 M (759), down 3.6 percent. Sales in comparable proprietary stores declined 3.0 percent

·       The operating result declined with SEK 40 M to SEK -35 M (6). Results have been negatively affected by SEK 11 M (9) from further provisions for bad debts, and by SEK 5 M from restructuring costs.

·       The profit before tax amounted to SEK -32 M (-12) Unrealized results on currency futures affected the quarter up with SEK 7M (-9). 
 
·       Profit after tax amounted to SEK -18 M (-9), corresponding to a profit per share of SEK -0.11 (-0.05).

·       Cash flow from operating activities amounted to SEK 49 M (48).

The interim-report period, September 1, 2010 - August 31, 2011

·       Net sales totaled SEK 2 966 M (3 054), down 2.9 percent. The negative impact from the divested operations at Steen & Ström department store is -2.2 percent. Sales in comparable proprietary stores increased 0.7 percent.

·       Write-down of goodwill and JC-trademark have been made with gross SEK 431 M, net after deferred taxes SEK 368 M.

·       Results have been negatively affected from an extraordinary provision for obsolescence in inventory in third quarter with SEK 58 M, from provisions for bad debts with SEK 27 M, and with SEK 5 M from restructuring costs.

·       The operating result decreased with SEK 126 M, excluding write-down of goodwill and JC-trademark with SEK 431 M, and amounted to SEK
 -78 M (48).

·       The profit before tax amounted to SEK -103 M (22) excluding write-down of goodwill and JC-trademark with SEK 431 M. Unrealized results on currency futures affected the quarter up with SEK 2 M (1).

·       The profit after tax amounted to SEK -445 M (29), corresponding to a profit per share of SEK -2.69 (0.18). Profit after tax includes a write-down of goodwill and JC-trademark with SEK 368 M.

·       Cash flow from operating activities amounted to SEK -18 M (120).

New financial objectives for RNB

The Board has decided upon new financial objectives effective from fiscal year 2011/2012

The new objectives are:
·       A long-term operating margin of 10 %
·       A long-term sales growth of 5-10 %
·       Debt/equity-ratio 0.5-1.0

Events after the end of the period

·       RNB will continue working with the company-wide change program and will be opening a production office in Hong Kong on 1 November 2011. The office will coordinate the production of the subsidiaries Polarn O. Pyret, Brothers & Sisters, and JC with the support of satellite offices, which will be opened in Shanghai and Dacca. This coordinated approach will have a positive impact on gross margin of two to three percentage points.

·       The Sisters concept will undergo a radical strategic change. The decision means, among other things that some so-called Duo Stores will be converted to Brothers exclusive stores, while others will reduce the Sisters area and expand the Brothers area. Going forward, the range for Sisters will also shift from carrying both internal and external brands to carrying only external brands.

·       The Board of Directors has decided to vigorously restructure the Norwegian operations in JC. Several more stores will be closed, down to a total of 5 stores from today's 21.

·       In early autumn, the group management has been strengthened by some new positions:

  • Marthyn Inghamn, CEO for JC
  • Yongan Kim, CEO for Brothers & Sisters
  • Anders Wiberg, Global Supply Chain Director
  • Madeleine Granath, HR-manager
  • Sarah König, Establishment manager
  • Henrik Welander, (interim) CIO

For further information, contact:

Magnus Håkansson, CEO, RNB RETAIL AND BRANDS, +46 8 410 520 02, +46 768 87 20 02, magnus.hakansson@rnb.se

Gunnar Bergquist, CFO, RNB RETAIL AND BRANDS, +46 8 410 520 01, +46 768 87 20 01, e-mail: gunnar.bergquist@rnb.se 

RNB RETAIL AND BRANDS owns, operates and develops fashion, clothing, accessories, jewelry and cosmetics stores that focus on providing excellent service and a world-class shopping experience. Sales are mainly conducted in Scandinavia through the three store concepts Brothers & Sisters, JC and Polarn O. Pyret, as well as through shops in the department stores NK in Stockholm and Gothenburg and Illum in Copenhagen. RNB RETAIL AND BRANDS has operation in 11 countries. RNB RETAIL AND BRANDS has been listed on the OMX Nordic Exchange since 2001.

                  

Year-end report September 1, 2010 – August 31, 2011



This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: RNB Retail and Brands AB via Thomson Reuters ONE

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