* First nine months revenue: EUR433,6m (-7.6%)
* Inflection of third semester trend (-5.6%):
- good performance on September and October : -4.5% on the French market
down of -7.8% (source: Institut Français de la mode)
- November not representative because of social movements in France
* Key strategic priorities have been confirmed: inventory reduction policy
and a record high recruitment of new Club members.
FIRST NINE MONTHS OF 2018-2019 REVENUE (unaudited data)
(March 1, 2018 to November 30, 2018)
IFRS - In EURm first 9 months first 9 months 9 months 2018/2019 vs.
Unaudited 2017/2018 2018/2019 9 months 2017/2018
Branches 251,9 232,4 -7,7%
affiliation 193,9 176,9 -8,8%
Internet 14,3 15,0 4,5%
Trading & Misc. 9,1 9,4 3,8%
revenue 469,1 433,6 -7,6%
of which France 296,5 271,0 -8,6%
of which Belux 59,4 54,3 -8,4%
(excl. Belux) 113,2 108,3 -4,4%
During the first nine months of 2018/2019, i.e. between March 1 and November
30, 2018, the Orchestra-Prémaman Group posted consolidated revenue of
EUR433.6m, down -7.6% relative to the year-earlier period.
This decline in revenues was in step with generally tough economic climate
(-8.6% compared with 2017): France witnessed the worst first-half period in
terms of consumption in five years (source: Kantar Worldpanel survey H1 2018 -
France textiles/shoes/accessories). Top-line performances also suffered
considerably from the renegotiation of the Group's debt financing.
September decreased by -18.6% in comparison with 2017 due to adverse weather
conditions with high temperatures during the back-to-school period which wasn't
conductive to consumption. However, the Group recorded a good performance for
October mainly thanks to better transformation rates (revenue +13.7% compared
with 2017) starting an upward trend combined with a cumulated performance of
-4.5% vs 2017 on the first two months of this quarter, validating sales plans
developed during summer time. Unfortunately, this trend reversal has been
disrupted by social movements in France since November despite the Group
achieved around 40% of its revenue abroad (revenue: -8.4% at Group level and
-10.2% in France).
Third quarter cumulated revenue was down -5.6% at Group level impacted by the
weight of France of which performance declined by -6.1% vs 2017. This trend
nevertheless remains higher than the market with a decrease of -7.5% vs 2017
Cumulated performance in France at November end was -8.6%:
- The textile business saw a 10.4% slide revenue, reflecting the market trend
of the specialist children's clothing chain sector (-7.5%, source: IFM)
- The Childcare Products business continued to chalk up strong momentum, with
sales increase +4.8%
In France, social movements did not result in an increase of purchase online as
compensation (source: Fevad). Yet, there was a noteworthy performance related
to online sales, especially during Black Friday; the online business continued
to deliver growth (+4.5%), driven by the marked acceleration in online sales of
childcare products (+115.2%) and the development of the following websites:
Greek (+58.5%), Swiss (+39.6%) and Belgian (+9.4%).
Trends in Belgium and international (excluding Belgium) markets were similar,
ending the period down -8.4% and 4.4%, respectively.
As a mean to secure future sales, the Group aimed to actively recruit new Club
members following sales plans developed last summer. At November 30 2018, the
Group had a record high 2.1 million Club card-holders, an increase of +14.8%
compared with 30 November 2017. Note that around 90% of Group revenue stems
from sales to Club card-holders.
THIRD QUARTER 2018-2019 REVENUE (unaudited data)
(September 1st, 2018 to November 30th, 2018)
IFRS - In EURm 3rd Quarter 3rd Quarter Q3 2018/2019 vs.
Unaudited 2017/2018 2018/2019 Q3 2017/2018
Branches 87,8 83,0 -5,5%
Commission-affiliation 68,4 63,4 -7,3%
Internet 6,4 6,8 6,4%
Trading & Misc. 1,8 2,0 9,3%
Consolidated revenue 164,4 155,2 -5,6%
of which France 104,5 98,1 -6,1%
of which Belux 19,2 18,3 -4,5%
of which International
(excl. Belux) 40,7 38,7 -4,8%
During the third quarter of 2018/2019, i.e. September 1 to November 30 2018,
the Orchestra-Prémaman Group posted consolidated sales of EUR155.2m, down 5.6%
relative to year-earlier period on a market with a -8.9% performance.
All effects have been mentioned above which are:
- September impacted by adverse weather conditions with high temperatures
leading to a negative effect on back-to-school campaigns
- However, October showed good results mainly thanks to higher transformation
rates compared with 2017
- Although 40% of the revenue is made abroad, November suffered from social
movements in France
STORE NETWORK (unaudited data)
in number and
thousands of m2 28/02/2018 30/11/2018 Change
unaudited Number Surface Number Surface 30/11/2018 vs. 28/02/2018
area area Number Surface area
The Group pushed ahead with the transformation of its retail network in the
first nine months, with:
- A major shift in store format towards mixed stores and megastores,
- The opening of four new clearance stores, reflecting the Group's goal of
actively reducing inventory levels.
Large format stores (mixed and megastores) now represent 55.4% of the network's
store space and a total of 145 stores.
The Orchestra-Prémaman is committed to a strategy of reducing inventory by
developing Large Format stores combining children's clothing, maternity wear
and childcare products all under one roof.
Fourth quarter revenue of 2018/2019, on April 11 2019 after market close
A public limited company with capital of EUR12.159.825
Head office: 200 avenue des Tamaris, Zac Saint Antoine, 34130 Saint-Aunès.
Registration n° : 398 471 565 in the Montpellier Trade and Companies Register