Redan saw net loss of PLN 17m in 2009 despite good results in Q4

2010-02-26

Redan, the operator of the Textilmarket, Troll and Top Secret clothing chains, despite healthy results in the fourth quarter of 2009, reported an annual net loss of PLN 17.3m (€4.3m), whereas sales revenues came to PLN 294.6m (€73.8m). What had a negative impact on company's whole-year preformance, was closing its subsidiaries in the Czech Republic and Slovakia and also liquidating own shops of the Troll retail chain in which Redan has previously invested PLN 12.7m (€3.2m). The Troll brand name collections are now being sold at Top Secret multi-brand establishments.
In Q4 2009 the company earned sales revenues of PLN 86.3m (€21.6m) and made a net profit of PLN 2.7m (€676,100). Good results were possible thanks to the fact that the company’s profit margins improved at its Top Secret chain in Q4 2009, which had been through a process of restructuring.
In 2010, the company intends to set up around 60 stores, both its own establishments and some on a franchise. The group also intends to abandon its wholesale clothing sales to large retail chains. Redan expects to earn sales revenues of PLN 333.7m (€83.5m) and to make a net profit of PLN 5.8m (€1.4m) in 2010.