Hema records profit in Q3 2017, first since 2012

By

Shomara Roosblad

Published
Dec 7, 2017

On 7 November, Dutch retailer Hema announced that it has recorded profit and higher sales in the third quarter of 2017. According to Hema, it is the retailer’s first registered Q3 profit since 2012.

Hema’s net profit came in at €4.6 million in the third quarter, compared to a loss of €1.6 million in the same period last year. In particular, sales of personal care products (+1.8%), household goods and food (+2.6%) increased.

The retailer has recorded net sales of €308.2 million in Q3 FY17, an increase of 2.3% from €301.2 million in Q3 2016.

According to Hema, the increase in net sales was largely due to higher like-for-like consumer sales (+2.2%) and the opening of new stores in France and Spain. It is Hema’s 11th consecutive quarter of group like-for-like-consumer sales growth.

Still, apparel sales declined by 0.5%. Hema cited the unseasonably warm weather in October and the closure of a vast majority of its outlet stores as the reason for the decline. The net group sales growth of apparel also dampened, for which the retailer blamed temporary store closures in the Netherlands, which were in connection with the introduction of the international store format in its larger stores.

Tjeerd Jegen, CEO of Hema, said: “We are pleased with our results in the third quarter. Once again we made solid progress with our growth strategy. This has led to a third quarter net profit for the first time since 2012. In the Benelux we completed the roll-out of our international store concept in our smaller stores. In addition to this we launched a pilot to test the international concept in our larger stores together with a new food concept. The first results have been positive and our customers are enthusiastic. Our aim is to continue to grow in the countries where we are currently active, but we are also looking at new markets.” Earlier this week Hema announced that it will enter the Austrian market and will open its first two stores in Vienna in the Spring of 2018.

Hema, which first opened in 1926, currently operates 700 stores in 7 countries. The retailer is known for its large product range, offering clothing, cosmetics, home products as well as food.