Hema net sales up by 3.3%, explores possible sale of the chain
On 28 September Dutch retailer Hema reported that it is exploring strategic options for a sale along with the release of its Q2 FY17 results. The retailer saw improved net sales but was impacted by refinancing costs.
Tjeerd Jegen, CEO Hema said: “Today we announced that we are starting to explore strategic options for Hema's future.” company has appointed Credit Suisse as advisor in the possible sale of the chain from London-based buyout firm Lion Capitol, who have owned the company since 2007.
The retailer claims that it is well-positioned to benefit from the future growth potential ahead, supported by a strong Benelux business and successful international expansion.
Net sales increased to €287.0 million in Q2 FY17, up 3.3% compared to €277.8 million in Q2 FY16 and fuelled by stronger sales in the categories of household goods, personal care products and apparel. According to Hema, the increase in sales is the result of higher like-for-like consumer sales, which went up by 3.1%, compared to last year's 2.6 percent rise.
In Q2 Hema opened 5 additional branches in France, which contributed to a stronger performance in the country and an increase in total net sales.
The company also reported a net loss in Q2 of €29.1 million, attributed to a one-off refinancing cost of €21.1 million in FY17. Its net loss for FY16 was €9.6 million.
Hema first opened its doors in 1926 in Amsterdam. Today, the chain has 32,000 own-brand products and services and more than 700 stores in 7 countries.
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