Year 2014

Dear Madam/Sir!

In 2014 we continued with the activities aimed, ultimately, at improving the financial results. The planned modifications included two areas – the exchange of product groups and optimization of the selling area.

Due to repeating warm winters, product policy in stores has undergone total modification. We have increased the percentage share of all-year assortment groups (i.e. football, running, fitness, and tourism) in relation to winter assortment groups (i.e. skiing and snowboarding). We have gradually started to change the level of orders, organized permanent zones in stores, and started the most difficult process, namely the change of a client’s profile. Today we can boast of a “small” success, which is equaling revenues on the sales of typical winter goods and all-year goods. Still several years ago the turnover generated in the winter season (1st and 4th quarters of each year) significantly effected all-year sales results. At the present, it is no longer so. The increase of the share of all-year product groups in 2014 sales caused that differences in the turnover in particular quarters have decreased which resulted in the significant decrease of the risk that the Company might suffered in connection with the seasonal character of sales.

Another area which required modifications was optimization of the trading area. Our target was to decrease expenses while simultaneously maintaining the level of revenues. We have reduced the area of the stores in Łódź  (-1.587 m2) and Gdynia (-1.396 m2), adjusting them to local market potentials. Instead, on good financial terms, we have opened new stores: in Lublin (883 m2),  Kalisz (501 m2), and Olsztyn (634 m2). In result of the mentioned activities the sales area of the whole network and rental costs were kept at the identical levels. Furthermore, due to the change of the store area we gained new customer markets, as the newly opened stores are the first INTERSPORT stores in the said regions.

Financial results. In 2014 the Company gained revenue on sales of PLN 217,184 k, i.e. on the level comparable to 2013 (was: PLN 219,891 k). Higher sales of all-year product assortment groups (ca. +20%) compensated the drop in the sale of winter product assortment groups (ca. -20%). In the period under consideration the Company reported EBITDA of PLN 5.692 k and net loss of PLN 2.653 k.

In 2014 the Company was awarded the title of the „Star of Quality Service” and won the first position among sports and tourism stores in the Daymaker Index 2014 consumers’ ranking. We are proud to know that INTERSPORT sport stores enjoy such a high trust of customers. We do hope that by systematic improvement of the sales profitability in the near future we will earn the recognition of prospect investors.

The implemented changes have determined us to achieve still better results in the year to come. They will result from further increase of the sales of all-year product groups (this will also be positively influenced by a growing fashion to be physically active among Poles), increase of margins (the margins on all-year product groups id higher than for winter product groups) and the effect of lower costs on comparable stores.

Yours sincerely,

Artur Mikołajko

President of  INTERSPORT Polska S.A.


Załączniki
sport to the people