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Hema Q3 net sales decrease 3.4 percent

Prachi Singh| Wednesday, 03 December 2014

REPORT_ Net sales of the Hema Group decreased by 9.6 million euros (11.8 million dollars), or 3.4 percent, from 280.7 million euros (346.4 million dollars) in the third quarter of fiscal year 2013 to 271.1 million euros (334.4 million dollars) in the third quarter of fiscal year 2014 ended November 2, 2014. During the third quarter of 2014, the Group opened two new stores - one owned and one franchised and three franchised stores in the Netherlands were closed at the end of the quarter under review.

Sales to retail customers accounted for 71.9 percent of net sales, sales to franchisees accounted for 26.8 percent of net sales and sales from other channels accounted for 1.3 percent of net sales at the end of the third quarter. Third quarter 2014 net sales to retail customers decreased, from 196.8 million euros (242.8 million dollars) in Q3 2013 to 195.1 million euros (240.7 million dollars) in Q3 2014, owing to lower sales in The Netherlands, partly offset by higher sales in France.

Net sales to franchisees decreased by 8.5 percent. Net sales from other channels decreased by 1.1 million euros (1.3 million dollars), or 24.2 percent, from 4.5 million euros (5.5 million dollars) in Q3 2013 to 3.4 million euros (4.1 million dollars) in Q3 2014 due to a decrease in bakery sales to third parties, which was partly offset by an increase in home-delivered online sales.

In the third quarter of 2014, the apparel product group accounted for 33.5 percent of net sales. In Q3 2013, the apparel product group accounted for 36 percent of net sales, which decreased by 10.2 million euros (12.5 million dollars), or 10.1 percent, mainly due to the decrease in sales of winter items, on the back of unfavourable weather in September in particular.

In Q3 2014, the Netherlands accounted for 79.2 percent of net sales, Belgium and Luxembourg accounted for 12.9 percent of net sales, France accounted for 5 percent of net sales, Germany accounted for 1.1 percent of net sales and Other, which includes sales to third parties delivered from HEMA bakeries, wholesale, ecommerce for home delivery and financial services, accounted for 1.8 percent of net sales. In Q3 2013, the Netherlands accounted for 81.5 percent of net sales, Belgium and Luxembourg accounted for 12.6 percent of net sales, France accounted for 3.4 percent of net sales, Germany accounted for 1 percent of net sales and Other accounted for 1.5 percent of net sales. Net sales in the Netherlands decreased 6.2 percent, in Belgium and Luxembourg, 1.1 percent, and in France, net sales increased 43.3 percent, due to opening of 11 new stores in France, as well as 6.1 percent increase in like-for-like sales in the quarter. The net sales in Germany increased 13.8 percent due to an increase of the online sales in Germany.

Like-for-like sales for Q3 2014 were negative 6.8 percent, compared to like-for-like sales in Q3 2013 of negative 3.4 percent. Like-for-like sales were influenced by the disruption caused by the store remodelling process in The Netherlands, which had a negative impact during the period, and lower apparel sales in September.






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