London - Dutch retailer Hema enjoyed a strong first quarter for its financial year 2017, reporting 4.8 percent increase in net sales in Q1 FY17 to 283.4 million euros, compared to 270.3 million euros in Q1 FY2016.
Like-for sales increased 2.7 percent during Q1 FY17 and adjusted EBITDA grew 11.4 percent to 17.6 million euros, marking Hema's ninth consecutive quarter of like-for-like sales growth. Online sales increased 44 percent in Q1 FY2017 compared to the same period one year ago, as the number of members in Hema's customer loyalty program rose to 2.2 million.
"We made a good start to 2017, despite the fact that the first half year is traditionally a slower period for retailers," commented Tjeerd Jegen, CEO of Hema. "In the first quarter of the year, we recorded continued growth in net sales and like-for-like consumer sales. Our strategic initiatives are the key drivers behind the higher sales. Our gross margin improved and adjusted EBITDA continued to rise despite higher investments in e-commerce and marketing."
Hema's international sales continued to grow in Q1 FY16, as the retailer continued to open a number of stores across Europe, including two new locations in the UK. The retailer reported the highest net increase in sales in Germany, followed by France. "I am very proud of the success of our loyalty program 'more Hema', which has attracted 2.2 million participants in less than six months," added Jegen. "We have completed our efforts to reduce our inventory. Our online sales were up significantly and sales were higher in all countries."
Photo: Hema, Facebook