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Obuv Rossii Group revenue down by 26.4%

Sep 21, 2020 Russian Federation
Obuv Rossii Group revenue down by 26.4%
The group's unaudited consolidated revenue decreased by 26.4% in the first half of the current fiscal year, reflecting the reduction in revenue during the lockdown period.
The group's unaudited consolidated revenue decreased by 26.4% totalling 3.963 billion Russian Rubles (roughly 44 million euros), compared to 5.384 billion Russian Rubles (approximately 60 million euros) in similar period in 2019. Net loss amounted to 306 million Russian Rubles (roughly 3.4 million US dollars), reflecting the reduction in revenue during the locked down period.

None of the group's stores operated in April, according to Obuv Rossii, and only some of its stores were open in May, which had a significant impact on the financial performance of the first six months of 2020.

“During the first six months, we considerably reduced our operating costs. When our stores were closed, we had negotiations with all leaseholders and agreed upon reduced rental rates or complete amnesty for the quarantine period. As a result, we managed to cut rent expenses in the second quarter by 150 million Russian Rubles, which makes 40% of all lease costs. Also, during the first six years of the year, the company had a planned optimization of its distribution network and closed least profitable stores most of which were located in shopping centres that suffered most from the pandemic. As a result, the group's retail chain consisted of 859 stores as of the end of June 2020 (908 as of the end of 2019)".

Image credits: Christin Hume on Unsplash


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