Obuv Rossii Group Announces Operating Results For 1H 2020
1H 2020 OPERATING HIGHLIGHTS:Group’s consolidated unaudited revenue decreased by 27.4% y-o-y to RUB 3.892 bln.Total like-for-like revenue rose by 0.2%.Portfolio size in installment payments decreased by 7.1% y-o-y to RUB 2.196 bln, portfolio size in cash loans increased by 23.2% y-o-y to RUB 2.529 bln.Over 12 months the number of the loyalty cards holders increased by 13.3% to 2.684 mln.
Anton Titov, CEO of Obuv Rossii Group, commented:
The new strategy we started to implement at the end of 2019, which includes the cooperation with the suppliers using the marketplace model, stock diversification and store reformatting into mini general stores, has proven its efficiency. After the lockdown measures were lifted, already in June our stores achieved the pre-quarantine figures in LFL sales. In 1H we attracted more than 500 new partners cooperating with us via the Prodayom platform, the total turnover of the platform made up more than RUB 2 bln. The share of online sales achieved 16% in the retail proceeds. Payment by instalments is the main sale technology in our Company, allowing us to maintain demand for our products. The instalment share in retail is increasing due to the decrease in real disposable income. During the lockdown period we continued to accept payments and provide cash loans remotely. The number of repeated applications increased, resulting in a growth of the average loan amount by 25%. The coronavirus-induced downturn will significantly impact most of the business sectors. But the Company’s new strategy, according to which we prioritize product and service diversification and online sale development, allow us to quicker achieve the pre-crisis numbers, restoring the business growth.
About OBUV ROSSII (http://obuvrus.com)
Obuv Rossii Group is a federal retail shoe chain, the first publicly traded company in the Russian fashion retail. Obuv Rossii was established in 2003, it is headquartered in Novosibirsk with a representative office in Moscow.