Redan confirms financial forecast for 2010

2010-09-06

After the first six months of 2010, Redan clothing group, which manages the Top Secret, Top Secret & Friends, Troll and Textilmarket chains, significantly improved its profitability. In H1 2010, net profit totaled to PLN 0.3m versus PLN 17.1m (€4.25m) of net loss in the analogous period of the previous year, while sales revenues totaled to PLN 142.2m (€36m) in comparison to PLN 137.5m (€34.4m). The improvement in results is the effect of higher profit margins that went up by 8% and lower costs that also decreased by 8%.
After publishing the results, Redan’s management confirmed the financial forecast for 2010, envisaging making PLN 334m (€83.5m) of sales revenues and PLN 5.8m (€1.5m) of net profit.
From January to June 2010, Textilmarket discount chain was enlarged by 23 stores to 179 establishments. In total, the chain is to be enlarged by 51 new outlets in 2010. In the first half of 2010, the discount chain, which appeared to be resistant to the crisis, increased its sales by PLN 12m (€3m) year on year to PLN 75.2m (€18.8m), while net profit grew from PLN 3.4m (€850,000) in H1 2009 to PLN 5.4m (€1.35m) in H1 2010.
By the end of June 2010, Top Secret consisted of 53 own stores and 130 franchise establishments, while Top Secret & Friends had 14 stores. Moreover, Redan is expanding on foreign markets such as Ukraine, Belearus, Russia and Bulgaria. The sales generated abroad increased from PLN 3.4m (€850,000) in H1 2009 to PLN 5.2m (€1.3m) in H1 2010.