Turnover increase for Hema in first quarter | RetailDetail

Turnover increase for Hema in first quarter

Turnover increase for Hema in first quarter

Dutch store chain Hema saw its turnover drop nearly 3 % in Belgium and Luxembourg over the course of the first quarter, compared to the first quarter last year. Overall, its turnover did increase, but its net income dropped.

Net loss dropped slightly

Net turnover in Belgium and Luxembourg dropped 2.8 % to 33.1 million euro, but Hema's total turnover grew 3.2 % to 264.4 million euro with like-for-like turnover up 1.5 % mainly thanks to better Dutch results. Like-for-like turnover dropped 1.9 % last year.

 

Hema is disappointed with the results: higher operational costs and lower gross margins caused EBITDA to go down 50 % from 23.7 to 13.2 million euro. Higher costs were mainly the result of three different reasons: higher promotional expenses; temporary staff hired to implement commercial initiatives; more logistical expenses to deal with the increased volume of low-priced articles in the supply chain. On the other hand, the company did manage to lower its net loss from 22.2 million euro to 19.5 million euro.

 

Precarious results abroad

"Despite the encouraging like-for-like turnover development, we had a disappointing normalized EBIDTA in our first quarter. We have listed a number of priorities to help improve our performance, mainly focused on logistics, but it will take some time to reap the benefits though. Although the economic recovery seems to persist, we also remain cautious in our outlook", CEO Tjeerd Jegen said.

 

Hema France's turnover grew 26.4 % to 14.6 million euro, while the preliminary results for Hema stores in Spain and the United Kingdom were "encouraging".

Questions or comments? Please feel free to contact the editors


Walmart and Microsoft team up to beat Amazon

18/07/2018

Two major American companies join forces to try to beat the omnipresent threat of Amazon: Walmart (Amazon's biggest competitor in retail) and Microsoft (Amazon's main rival in cloud services) have signed a strategic partnership for the next five years.

Sales of PCs grows for the first time in six years

13/07/2018

For the first time in six years computer sales showed growth again: in the second quarter of 2018 they increased by 1.4%. According to research firms Gartner and IDC, the sales increase is mainly due to growth in business markets.

Retailhub Inspiration Tour: the customer journey becomes very different

09/07/2018

Thanks to Retailhub by RetailDetail, Antwerp has one more unique retail hot spot. Professionals can experience the future of retail in the Benelux' only retail inspiration platform, with 1250 sqm of innovative technology and huge trends.

Breakthrough in Karstadt-Kaufhof merger

05/07/2018

Canadian Hudson’s Bay and Austrian Sigma Holding have not reached a preliminary agreement about the merger of their respective department store chains Kaufhof and Karstadt: the Canadian company says it has only signed a letter of intent.

Alibaba CEO and Belgian PM discuss investment in Liège

04/07/2018

Alibaba founder Jack Ma has discussed a possible investment in Liège, Belgium with the country's prime minister Charles Michel. Afterwards no decisive statements were made by either party.

Toys "R" Us closes American stores amidst reboot hopes

02/07/2018

Final curtains for Toys "R" Us in the United States: all the stores have closed and 30,000 employees are laid off. Against all odds, some however still hope for a second life for the troubled chain.