Bestseller 'unsatisfied' with 2012/2013 earnings increase of 6%
Danish group Bestseller – parent to brand Vero Moda, Jack&Jones and Only – has said it is unsatisfied with its 2012/2013 end of year results, despite posting a 6% increase in sales to 2.6 billion euros and a net profit of 192 million euros, up 17% on the previous year.
Though the group managed to post a sales increase despite a highly competitive market, Bestseller said that its performance was ‘unsatisfactory considering [our] expectations’, with factors including logistics and the group’s stores cutting into profits.
Results did not meet expectations and investments in logistics, technology and stores had cut into profit. Bestseller also encountered problems in its South European, Middle Eastern and Indian market.
Though the group reported healthy results in terms of wholesale, the annual report states that retail earnings were unsatisfactory.
"It is important that we invest more in developing our retail business. We need to be faster at delivering our products to the stores,” said CEO Anders Holch Povlsen. “This requires a sharp focus and a close cooperation with our store partners and suppliers to simplify and streamline our procedures. All in all, we must focus on reducing our costs throughout the entire value chain to ensure a healthier balance between revenue and expenses," he continued.
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