The footwear retailer CCC reported excellent figures for the fourth quarter, with a 50% y-o-y jump in consolidated sales and an even stronger improvement in net and operating profits. The results are very positive and consistent with expectations. On a less favourable note, the company’s operating cash flow deteriorated and its net debt increased by nearly two thirds compared with a year ago, commented Sobieslaw Kozlowski, analyst at Raiffeisen, as quoted by Parkiet.
The integration of the online platform eobuwie.pl - which performed spectacularly in 2016, doubling its sales revenues - contributed to the strong sales rise, as did new store openings. CCC did not provide LfL data for the quarter but said that in 2016 as a whole same-store sales were up in all markets, including +10% in Poland, +4.9% in Central and Eastern Europe and +4% in Western Europe.
CCC continued to develop its store estate in foreign markets in Q4, opening seven new stores in Austria, six in Romania, four in Germany, three in Slovakia, two each in the Czech Republic, Serbia, Russia and Hungary and one each in Bulgaria and Slovenia, the Q4 report notes. A comparison with the Q3 report indicates that the company also added 12 stores on the Polish market in the three months to December.
As of the end of 2016 CCC had 862 stores, up from 759 a year earlier. Its floorspace increased by 24%, year on year, to nearly 459,000 m2.
According to preliminary unaudited figures, in 2016 as a whole CCC recorded a 38% rise in revenues and a 18% rise in net profit.
|CCC store network, Q4 2015 and Q4 2016|
|* CCC acquired its Russian distributor in September 2016|
|Q4 2016||Q4 2015|