Blokker Holding has reported a 344 million euro loss for the past fiscal year, largely because of high one-time restructuring costs, according to the group. The implementation of its new strategy is on schedule.
The holding had already announced that 2017 would be a “disappointing” fiscal year, because of its altered strategy. Its 344 million euro net loss includes 154 million euro in one-time restructuring costs. The turnover drop, from 1.965 billion in 2016 to 1.583 billion last year, was not only because of store closures and sales, but also because of disappointing commercial results.
Blokker Netherlands did showcase the first positive consequences of the new strategy in 2017’s final quarter. Store visits increased and conversion also developed positively. The integration between Blokker and Nextail, announced in March 2018, boosted online sales. E-commerce now represents 15 % of total turnover. Michiel Witteveen, temporary CEO for Blokker Holding, says there were “careful signals” that things are improving, but he also said the company will need to work hard.
The shareholders and the Board of Commissioners confirm their faith in the strategy and future. The holding emphasized that it has the funds required to restructure: its solvability reached 41 % at year’s end and it still has a 485 million euro credit until 2021. “Such a huge transformation requires time and Blokker Holding expects 2018 to have a negative net result as well.” The press release did not reveal any information on the Belgian situation.