Obuv Rossii Group revenue down 24% in first half

Russia
Published:  15 September, 2020

The Russian footwear retail chain posted unaudited consolidated revenue down 26.4% to RUB3.963 billion (US$53.25 billion) in the first half of the year, compared with RUB5.384 billion (US$71.89 billion) in the corresponding period of 2019.

Obuv Rossii said that none of the Group's stores operated in April and only some of its stores were open in May. Net loss in the first half of 2020 amounted to RUB306 million (US$4 million). Gross profit was RUB2.27 billion (US$30.33 million) in the period and gross profit margin was 57.5%. EBITDA amounted RUB426 million (US$5.67 million), with an EBITDA margin of 10.7%.

“During the first six months, we considerably reduced our operating costs. When our stores were closed, we had negotiations with all leaseholders and agreed upon reduced rental rates or complete amnesty for the quarantine period. As a result, we managed to cut rent expenses in the second quarter by RUB 150 million (US$2 million), which makes 40% of all lease costs. Also, during the first six months of the year, we had a planned optimisation of our distribution network and closed least profitable stores, most of which were located in shopping centres that suffered most from the pandemic”, said Anton Titov, CEO, Obuv Rossii Group. As of end of June 2020, the Group’s retail chain consisted of 859 stores against 908 at end of 2019.