Fashion retailer Macintosh Retail Group is heading towards a big sales drop for this quarter, “the likes of which I have not yet experienced in my career in the non-food retail sector.”, says CEO Frank De Moor.
Almost no sales of summer shoes and garden furniture
Sales of Macintosh Retail Group up to 21 April 2013 were 36.2 million euro lower (-14%) than in the same period a year earlier, says the company in its trading update. In Fashion there was a drop by -16% to 164.3 million euro, with sales in all companies under pressure. Dutch activities are the reason for almost half of the drop.
Sales of the Living sector dropped 7% to 57.8 million euro. When compared to the rest of the home decoration market, Kwantum did not perform so badly though. “Bleak economic and climate conditions resulted in a drop in turnover, the likes of which I have not yet experienced in my career in the non-food retail sector.", says CEO De Moor.
"The month of March and the first few weeks of April, in particular, were extremely poor, owing to the cold weather, as a result of which we hardly sold any summer shoes or garden furniture”, allows the CEO to point to the awful winter - amongst others - in the Netherlands and Belgium.
“On a positive note, we were able to offset part of the fall in turnover by maintaining our gross margin as a percentage of turnover at the same level and considerably reducing our costs. Still, the start to 2013 is something best forgotten.” The CEO is comforted by the thought that “indications are that the substantial drop in turnover in March was a generic phenomenon in the markets relevant to Macintosh Retail Group.”
Better weather at last!
The better weather in April already had its positive effect on sales, says Macintosh: “We assume that there will be some catch-up demand in the weeks to come. Nevertheless it is expected that Macintosh Retail Group’s operating result for the first half of 2013 will be lower than that for the first six months of 2012.” The company will announce its half-year results on 25 July.
Macintosh also points to the fact that the second half of the year traditionally is far more important for sales than the first half, but it repeats what the company said earlier: “2013 would be a transitional year in which the market was unlikely to recover.”