Macintosh H1 turnover soars 10.1 percent

REPORT_ Macintosh Retail Group witnessed a significant turnover growth in fashion by 29 million euros

(39.4 million dollars) representing 10.1 percent rise to reach 316 million euros (430.2 million dollars). This was chiefly attributable to a higher sales conversion rate and a rise in average sales amount in all countries in which fashion operates.

Living (Kwantum) realised a 3.5 percent lower turnover in the first half of 2014 in a home decoration market that had contracted by 1.9 percent by April despite an upswing in consumer confidence. In the past few weeks however, Kwantum posted a clear increase in sales, realising a turnover in Q2 2014 equal to Q2 2013. Expectations are that this trend will continue into the second half of the year.

Commenting on the results, Kurt Staelens, member Managing Board and CEO as of 1 August 2014 said, “With this new solid financial basis and the excellent first half of 2014, Macintosh can further execute its strategy with drive. I am very motivated to lead this process as CEO.”

Added current CEO, Frank De Moor, “The fact that banks and our majority shareholders are prepared to renew the financing package shows that they are confident about the further implementation of our ‘rebalancing for profitable growth’ strategy. As a result, Macintosh can focus on strengthening its shoe formats, tackling loss-making stores and quickly expanding the cross-channel proposition. As reflected in the substantial increase in turnover from the fashion segment, our strategy already proved successful in the first half of the year.”

Based on current insights and indicative, Macintosh's operating EBIT, exclusive of incidental effects, is expected to land between 13 million euros (17.7 million dollars) negative and 14 million euros (19 million dollars) negative. In qualitative terms this is much better however than in the first half of 2013 when there was also a negative operating EBIT of 13 million euros (17.7 million dollars), which was boosted by a positive 3.9 million euros (5.3 million dollars) effect thanks to the sale of retail properties. The final figures for H1 2014 will be published on 30 July 2014 before market opening.