The first half 2016, at a small loss

The first half 2016, at a small loss

INTERSPORT Polska SA in the first half of 2016 years recorded a loss before tax of PLN 456 thousands (Q1 2016 - profit of PLN 1,085 thousand, Q2 2016 - a loss of PLN 1,541 thousand). Profit from EBIT operations amounted to PLN 436 thousand, while EBITDA stood at PLN 3.779 thousand.

In the first half of 2016, the Company recorded a sales decline of 3.6% y / y (now: PLN 107,269 thousand was: PLN 111,264 thousand). Lower sales in the first half of 2016 was mainly associated with a decrease in sales of own brands by 21% y / y, which in turn resulted in the development of lower margin (margin reduction for own brands is responsible for 90% of the overall decline).

Operating expenses in the first half of 2016 were lower by approx. 1%, i.e. PLN thousands less y / y. In February 2016, the Company incurred one-off costs associated with the closure of two stores (undepreciated full investment costs, costs of closures, severance), which totalled PLN 406 thousand. Closing the two old stores that regularly recorded large drops in turnover and deepened their losses will affect the subsequent periods the improvement of results.

In the first half of 2016, the Company recorded in stores the increase in the average receipt value, which shows the strengthening of the position of INTERSPORT stores in the sale of goods from the middle and upper price range. The highest quality of customer service has confirmed the title of "The Star of Service Quality 2016" awarded to INTERSPORT Polska in the consumer ranking.

The Company records a steady increase in on-line sales. In the first half of this year the turnover in this sales channel increased by approx. 20% y / y. Later this year, we will complete the work aimed at implementing a modern platform for on-line commerce, which should translate into achieving even higher growth of sales in the e-commerce channel. At the end of June, the number of registered regular customers exceeded 500 thousand people.The company focuses on the development of a loyalty program in new areas, because regular customers who buy more and more often are an important element of the INTERSPORT businesstoday and in the future.

Due to the further improvement of logistics, as well as to reduction the stock pf of winter goods by over 20% y / y the company reduced the period of inventory turnover. In the first half of this year the Company continued with the revitalization of new stores, the prize in the 9th edition of "Retail Marketing Awards" received in April for the metamorphosis of the shop in
CH "Arcadia" in Warsaw confirmed the high quality of the changes.

sport to the people