Obuv Rossii Group (MOEX: OBUV/ hereinafter the "Company" or, together with its subsidiary and dependent companies, "Obuv Rossii" or the "Group"), the first publicly traded company in the Russian fashion retail, summarizes the results of its retail chain development in the first half 2019. During the reporting period, the Group continued launching new stores all over Russia. In the first half 2019 the net growth of the retail chain amounted to 105 directly operated stores. As of 30.06.2019, the Group comprised 837 stores (including 166 franchising ones) in 320 cities and towns of Russia.
«In 2018 we improved the retail management system, created enlarged regional divisions. Due to new organizational structure, we may monthly open 30 or 40 stores on regular basis. — Anton Titov, CEO of Obuv Rossii Group, comments. — We have analyzed the promising regions for retail chain rollout and determined more than 400 cities and towns for stores launching in the nearest 2 or 3 years. We consider small towns with population from 50 to 100 ths.people to be promising and prioritize opening new stores there. In such settlements capital expenditures, rent rates and promotion expenses are lower, at the same time, the level of competition is not high and there is a big demand for high-quality footwear and services. In 2019 we plan to launch 150 new stores».
In the first half, Obuv Rossii significantly enhanced its footprint and entered 92 new cities and towns. The company is developing the retail network all over the country; most new stores were opened in Siberia — 42%. The Group also strengthened its positions in Urals, Far East and Volga Region — 20%, 18% and 17% of all openings for the period, 2% of new sales outlets were located in Northwestern Federal District. In line with its strategy, the Company primarily launched new stores in street format — 91%, 9% of new stores started operation in shopping malls. Regarding the rollout by brands, in the first 6 months Obuv Rossii prioritized the main brand Westfalika — 99.3%. In the first half 2019, the total selling space of DOS increased by 9% from 53.8 to 58.6 ths. sqm.
Company profile:
Obuv Rossii (MOEX: OBUV) is a nationwide footwear company, the first publicly traded company in the Russian fashion retail. Obuv Rossii was established in 2003, it is headquartered in Novosibirsk and has a representative office in Moscow. The main Group business line is the production and sale of footwear and related goods. The Company manages 839[1] stores (166 operate as a franchise) under the brands of Westfalika (a monobrand store of classic footwear), Peshekhod ("Pedestrian") (a multibrand footwear supermarket), Rossita (a store for the whole family), Emilia Estra and Lisette (salons of fashionable footwear), in addition to developing brands of clothes and footwear for the active lifestyle brands of S-TEP, All.go and Snow Guard. Furthermore, the Group also owns two manufacturing facilities in the Novosibirsk region.
In October 2017, Obuv Rossii raised 5.9 billion rubles in an IPO on the Moscow Exchange (ticker: OBUV), the issuer being OR PJSC, and in doing so became the first publicly listed company within the Russian footwear and fashion market. In September 2018, RAEX (Expert РА) confirmed the creditworthiness rating of Obuv Rossii Group at ruBBB+ level, a "stable" forecast.
In accordance with the audited Financial Statements under the IFRS Group, revenue amounted to RUB 11.55 billion for the full year of 2018, net profit was RUB 1.33 billion, and EBITDA was RUB 2.86 billion.
Website of the Group: www.obuvrus.ru; Internet stores: www.westfalika.ru, www.westfalika-home.ru, www.emilia-estra.ru, www.rossita.com, www.lisette.me.
[1] As of 09 July 2019
