Hemtex’s net sales up 29 percent

Hemtex’s interim report for the first three months of the 2007/2008 fiscal year reveals continued rapid expansion and profitability. In the financial accounts for the first quarter of the fiscal year, May 1-July 31, 2007, the Hemtex Group reports a sales increase of 29 percent to SEK 386 M (300).

At the same time, operating profit for the period increased to SEK 50.4 M (43.3), corresponding to an operating margin of 13.1 percent (14.4). An increased share of store sales reported in the Group, an advantageous exchange rate trend and lower purchasing prices had a favorable impact on earnings, while establishment costs for new stores and markets had an adverse impact.

”On the whole, our first quarter was characterized by continued expansion and healthy sales in our stores. During the quarter, sales in comparable stores increased in all of our markets”, says Anders Jansson, President and CEO of Hemtex.

The Group opened a total of five new stores, of which three were in Sweden, one in Finland and one in Estonia. In Sweden, stores were opened in Falköping, Nynäshamn and Tyresö. In Finland, a store was opened in Tampere. In Estonia, the Group's first store was opened in Pärnu. The rate of establishment will remain high and Hemtex expects the Group to establish approximately 25-30 stores during the 2007/2008 fiscal year.

”Hemtex is continuing its expansion, both geographically and in terms of products and concepts. We expect to establish two to three franchise stores in our new market, Poland, during the year and could consider franchise establishments in additional markets. As early as in October, we will be opening our first two volume stores, Hemtex & More, in Stockholm. The potential for continued growth is considerable”, says Anders Jansson.