2007 06-28 q3 2006/2007 results

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Christian W. JanssonPresident & CEO

Håkan WestinCFO

Third quarter and nine months reportMarch 1 to May 31, 2007

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Disclaimer

• These materials may not be copied, published, distributed or transmitted to third parties.

• These materials may contain forward-looking statements. If so, such statements are based on our current expectations and are subject to risks and uncertainties that could negatively affect our business. Please read our earnings report and our most recent annual report for a better understanding of these risks and uncertainties.

• These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of these materials or their distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. These materials and the information contained herein are no an offer of securities for sale in the United States and are not for publication or distribution to persons in the United States.

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272 stores end May 2007

32 new contracts signed;

2 in 06/07

17 in 07/08

13 forward

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84 13241

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Business highlights

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Financial highlights Q3

• Net sales MSEK 1,106 (1,029), an increase of 7.5 percent.

• Operating profit MSEK 132 (120), an increase of 10.0 percent.

• Gross margin 62.3 (61.9) percent and operating margin 11.9 (11.7) percent.

• Profit after taxes MSEK 79 (73), equivalent SEK 1.05 (0.97) per share.

• Cash flow from operating activities MSEK 136 (83).

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Income statement Q3MSEK March-May 06/07 05/06Net sales 1 106 1 029Cost of goods sold -417 -392Gross profit 689 637Selling expenses -528 -477Administrative expenses -32 -40Administrative expenses 3 0Operating profit 132 120

Financial income 11 0Financial expense -32 -18Profit before tax 111 102

Tax expense -32 -29Net profit 79 73

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Sales Q3

• Strong Like For Like performance.

• Increased marketing activities boost sales.

MSEK %Net sales Q3 2005/2006 1 029Currency effect -1.5New net stores +3.0Like For Like growth +6.0Net sales Q3 2006/2007 1 106 +7.5

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Profitability drivers Q3

• Strong gross margin+ currency- offerings

• Increased marketing costs

• Stable operating margin11.9

2.9

47.7

62.3

06/07 05/06

11.7

3.9

46.4

61.9

Operating margin

Admin expenses % of sales

Selling expenses % of sales

Gross margin

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Financial highlights 9m

• Net sales MSEK 3,383 (3,207), an increase of 5.5 percent.

• Operating profit MSEK 435 (357), an increase of 21.8 percent.

• Gross margin 60.8 (59.3) percent and operating margin 12.9 (11.1) percent.

• Profit after taxes MSEK 540 (187), equivalentSEK 7.20 (2.49) per share.

• Cash flow from operating activities MSEK 449 (364).

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Income statement 9mMSEK Sept-May 06/07 05/06Net sales 3 383 3 207Cost of goods sold -1 326 -1 306Gross profit 2 057 1 901Selling expenses -1 529 -1 432Administrative expenses -109 -112Other operative income 16 0Operating profit 435 357

Financial income 23 3Financial expense -81 -101Profit before tax 377 259

Tax expense 163 -72Net profit 540 187

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Sales 9m

• Like For Like excluding cosmetics was +4.6 percent

MSEK %Net sales 9m 2005/2006 3 207Currency effect -1.7New net stores +3.9Like For Like growth +3.0Net sales 9m 2006/2007 3 383 +5.5

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Sales breakdown 9m

Sweden57%

Norway28%

Finland11%

Poland4%

(56%)(29%)

(11%)

(4%) Growth

MSEK 06/07 05/06 SEK Loc.cur.Sweden 1 931 1 803 7,1% 7,1%Norway 938 939 -0,1% 5,8%Finland 383 355 8,5% 10,4%Poland 131 110 18,1% 20,9%Total 3 383 3 207 5,5%

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Profitability drivers 9m

• Improved gross margin

• Unchanged cost as percentage of sales– marketing+ economies of scale

• Improved operating margin

12.9

3.2

45.2

60.8

06/07 05/06

11.1

3.5

44.7

59.3

Operating margin

Admin expenses % of sales

Selling expenses % of sales

Gross margin

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Cash flow 9m

MSEK Sept-May 06/07 05/06Cash flow from operations before working capital changes 464 294Changes in working capital -15 70Cash flow from operating activities 449 364Cash flow investing activities -210 -181Cash flow after investments 239 183Change in revolving credit 60 84Dividends -188 -169Cash flow from other financing activities -66 -72Net cash flow for the period 45 26Cash and bank balances at beginning of period 83 83Cash and bank balances at end of period 128 53

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New dividend policy 06/07

70-100 percent of profit after paid taxes

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New store expansion program

The number of stores will increase by 20-25 per year

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Key conclusions and outlook

• Continued sales success

• Stable gross margin

• Increased marketing efforts

Moving further ahead

• Continue marketing activities

• Maintain gross margin

• Increased store expansion program

• Investigate a potential new market

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We don’t believe in selling a lifestyle.You have one already.

We don’t believe in expensive collections for an exclusive few.

We believe in fashion that suits you.We don’t believe in eternal youth, however we believe that people mature, grow wiser

and even more beautiful.

Take it as a compliment.

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To be continued…

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