odd molly q4 2017...retail •shops run by odd molly •stand-alone stores, shopping malls,...
TRANSCRIPT
ODD MOLLY Q4 2017Anna Attemark, CEO
Johanna Palm, CFO
1
AGENDAI. Intro
II. Q4
III. Full year
IV. Going forward
RETAIL IS CHANGING
…AND SO ARE WE
Design driven
100% wholesale
Deliveries 4 times / year
10% online selling 2012
✓ Customer focus
✓ 50% retail / 50% wholesale
✓ News every week
✓ 40% online selling 2017
DEVELOPMENT OVER TIME
Sales 2017
MSEK
432MSEK
Adjusted
Op. Margin 2017
0.3MSEK
-40,0
-20,0
0,0
20,0
40,0
60,0
80,0
0,0
50,0
100,0
150,0
200,0
250,0
300,0
350,0
400,0
450,0
500,0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales Operating profit
INTRODUCTION
FOURTH QUARTER 2017
6
Q4 2017 OPERATIONAL HIGHLIGHTS
• Market undergoing big transformation – requires adjustments
• Quarter marked by discounted sales periods
• Mid-season sales October
• Black Friday in November all time high
• End-of-year sales from 25 December
• E-commerce continue to drive growth
• CEO announced resignation and deputy CEO appointed as successor – shift latest August 2018
RETAIL
+5%
+1%
FINANCIALS
WHOLESALE
Q4 2017 FINANCIALS IN BRIEF
• Total operating revenue SEK 89.6 million (86.5)
• Gross profit margin 51.6 (60.0) impacted by sales periods
• Operating profit SEK -11.1 million (-0.3),
• Operating margin -12.4 percent (-0.3)
• Net profit SEK -9.2 million (0.8)
• EPS SEK -1.60 (0.14)
SALES GROWTH
+4%
51.6%
FINANCIALS
GROSS MARGIN
JANUARY – DECEMBER 2017 FINANCIALS IN BRIEF
• Total operating revenue SEK 432.1 million (423.2)
• Gross profit margin 53.9 percent (55.6)
• Operating profit SEK -4.5 million (24.5)
• SEK 0.3 million before one-off costs
• Operating margin -1.0 percent (5.8)
• Net profit SEK -6.3 million (17.7)
• EPS SEK -1.09 (3.08)
• Cash flow from operating activities SEK -0.5 million (6.6)
• Investments SEK 4.3 million (22.0)
• Board proposes no dividend for 2017
SALES GROWTH
+2%
GROSS MARGIN
53.9%
FINANCIALS
-12,0
-10,0
-8,0
-6,0
-4,0
-2,0
0,0
2,0
4,0
6,0
8,0
Operating
profit
Adjustments Finance net
and taxes
Changes in
working
capital
Cash flow
from
operating
activities
Investments Dividend Cash flow
Cash Flow Jan-Dec 2017
CASH FLOW JANUARY-DECEMBER 2017
FINANCIALS
MSEKCash Flow Jan-Dec Year-over-Year
Comparison
Cash flow from operating activities Jan-Dec 2016 6,6
Lower operating profit -29,0
Adjustments -0,5
Finance net and taxes -0,6
Change in inventory +0,0
Change in receivables +25,4
Change in current liabilities -2,4
-7,2
Cash flow from operating activities Jan-Dec 2017 -0,5
QUARTERLY DEVELOPMENT
0
50 000
100 000
150 000
Q1 Q2 Q3 Q4
Sales by Quarter
2014 2015 2016 2017
-15 000
-5 000
5 000
15 000
25 000
Q1 Q2 Q3 Q4
EBIT per quarter
2014 2015 2016 2017
0
100 000
200 000
300 000
400 000
500 000
Q4-13 Q4-14 Q4-15 Q4-16 Q4-17
LTM sales
-40 000
-20 000
0
20 000
40 000
Q4-13 Q4-14 Q4-15 Q4-16 Q4-17
LTM EBIT
FINANCIALS
FINANCIAL TARGETS – JANUARY-DECEMBER 2017
FINANCIALS
20%
40%
12%
ANNUAL AVERAGE GROWTH RATE EXCEEDING 20 PERCENT IN COMING YEARS
OPERATING MARGIN OF OVER 12 PERCENT OVER A BUSINESS CYCLE
EQUITY/ASSET RATIO AT LEAST 40 PERCENT OVER TIME
2%
50%
-1,0%
OUR SEGMENTS –RETAIL AND WHOLESALE
AN INCREASED SHARE OF RETAIL OVER TIME
Wholesale
2012
Full Year 2017
Wholesale
Retail
incl. oddmolly.com
Retail
SEGMENTS
• Clear shift in consumer behavior
• Market - campaign driven
• E-commerce growth driver
SALES SHIFT ONLINE
SEGMENTS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total sales split
Brick and mortar channels Online channels
RETAIL
• Shops run by Odd Molly
• Stand-alone stores, shopping malls, shop-in-shops in department stores
• Sweden, Norway, Finland
• Web shop
• Sale in some 40 countries
SEGMENTS
51%49%
2017 Sales
Retail Wholesale
Oct-Dec Oct-Dec Full year Full year
TSEK
2017 2016 2017 2016
Sales 48,762 46,223 221,150 195,142
Operating profit 3,966 10,077 30,972 42,717
Operating margin, % 8.1 21.8 14.0 21.9
WHOLESALE
• Reseller (shops and web shops)
• Some 30 countries
• Shop-in-shops with resellers
• Stores operated by resellers/partners
SEGMENTS
51%49%
2017 Sales
Retail Wholesale
Oct-Dec Oct-Dec Full year Full year
TSEK2017 2016 2017 2016
Sales 40,797 40,235 210,968 228,022
Operating profit 3,123 7,467 34,458 53,435
Operating margin, % 7.7 18.6 16.3 23.4
INTERNATIONAL EXPANSION AND DIGITAL FOCUS
• Increased focus on reaching new customers
• Online sales - no boundaries
• New agents in Germany, France and Austria
• Covering omni-channel resellers
• New representation in Great Britain
• Profitability and cost review throughout organisation
STRATEGY
OUR ASSORTMENT STRATEGY
ASSORTMENT :
NEWS
• Many deliveries
• Small clearcollections
RIGHT GARMENT IN
RIGHT TIME
• Maximumsellthrough
BALANCE
• Fashiontriangle
• Tops/bottoms
• Simple/decorated
• Productgroups
SELLINGFOCUS
• Selling
• Inviting
PRICE = WITHINREACH
• 85% <2000
• 95% ”within reach”
CUSTOMERFOCUS
• Bought lastseason?
• Want thisseason?
SOLID PLATFORM
COLLECTION STRATEGY –FANTASTIC CUSTOMER
OFFER
FOCUSED EXPANSION –CLEAR CONCEPT THAT IS
SUCCESSFUL IN NEW MARKETS
OMNI-CHANNEL OFFERING – CONCEPT THAT
FITS ALL CHANNELS
SALES SHIFT ONLINE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total sales split
Brick and mortar channels Online channels
RETAILL IS
CHANGING…
AND SO ARE WE
THANK YOU!