Polish shoe retailer CCC sees Q1 loss, keeps 2016 targets

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WARSAW / Reuters

Poland’s CCC, Eastern Europe’s largest shoe retailer, swung to a net loss in the first quarter of 2016 due to poor weather and an earlier Easter than last year, but still expects a big rise in 2016 sales, its deputy chief said.
“March was indeed very weak and there will be a net loss in the first quarter,” Piotr Nowjalis told daily Parkiet in an interview. “But we approach it calmly, we’re accustomed to seasonality in the sector.”
CCC, which accounts for about 20 percent of the local market and sells more than 28 million pairs of shoes a year across the region, is to publish its first quarter results on May 12.
A year ago, CCC booked a net profit of 6.4 million zlotys ($1.7 million) in the first three months of 2015, or only 2.6 percent of the group’s overall 2015 net profit.
The blue-chip group, which competes in Poland and the region with Germany’s
Deichmann, sells in 16 countries around central and Eastern Europe, as well as the Baltics and the Balkans.
Controlled by Polish billionaire Dariusz Milek, the group’s current chief executive, CCC is worth about 6.14 billion zlotys on the Warsaw bourse and plans to raise its 2016 sales by up to 1 billion zlotys, or 43 percent. “We reiterate our target of raising our overall net selling space this year by 100,000 square meters, or by 27 percent,” Nowjalis said.
He added CCC would pay out a dividend from its last year’s earnings. A year ago, the group paid out 115.2 million zlotys or 3 zlotys per share as a dividend.
CCC is the market leader in the Polish footwear retail and one of its biggest manufacturers in Poland. The CCC Group comprises 700 stores located in modern shopping centres in 14 countries, own leather shoes factory, 7.000 employees and 25 million pairs of shoes sold within one year.
Fashionable and attractively priced products are offered in own stores in Poland, Slovakia, Hungary, Czech Republic, Austria, Slovenia, Croatia, Turkey, Germany and in franchise stores in Baltic countries, Russia, Ukraine, Romania and Kazakhstan.

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