May 17
pm-operating-profit2017

NKD Group: Adjusted Operating Profit nearly Doubles in 2017

  • Sales increased by 2.5% to EUR 697.6 million, while the number of stores was nearly constant
  • The adjusted operating result (EBITDA) reached EUR 37.9 million, an increase of EUR 17.5 million compared to the previous year
  • Over 90% of NKD shops are profitable
  • NKD achieved a net result of EUR 12 million in 2017; its first positive net result since 2013
  • Investing in growth: Mid-term expansion of store network to 2,500 stores and investments in E-Commerce planned

Bindlach, May 17, 2018 – The discount clothing retailer NKD continued its positive development in Fiscal Year 2017 and has further improved sales and net results, while specifically investing in the modernization of its store network. Sales grew by 2.5% to EUR 697.6 million despite a nearly constant number of stores and a weak market environment especially in the second half of 2017. NKD continued its like-for-like growth for the fourth consecutive year with a calculated annual growth rate (CAGR) of 6.0% (2013 to 2017). The adjusted operating result (EBITDA) improved by EUR 17.5 million compared to the previous year, reaching EUR 37.9 million. For the first time since 2013, NKD achieved a positive net result of EUR 12 million.

“We have further improved our profitability in a challenging market and competitive environment. Furthermore, we closed the year – for the first time in four years – with a positive net result“, commented Ulrich Hanfeld, CEO of NKD Holdings GmbH. “On this solid basis we plan a mid-term expansion of our store network, in particular in our core markets, to 2,500 NKD shops.”

Profitable store network

Going forward, NKD plans to grow its store network that currently comprises 1,776 stores in Central Europe, of which approximately 1,300 are located in Germany, with a new store concept. The discount clothing retailer has continued to improve the profitability of its store network in the past fiscal year and has increased store space productivity by 26.2% since 2013. Over 90% of NKD stores are profitable today. “We have a very healthy store network”, said Rüdiger Hartmann, CFO of NKD Holdings GmbH. “Based on our own resources, we have invested substantially in the modernization of our store network in 2017.”

NKD will complement the planned expansion of store space with investment in its E-Commerce business and launch its new web shop in the second quarter.

 

About NKD

The NKD Group boasts a total of approximately 1,800 stores in Germany, Austria, Italy, Slovenia and Croatia, as well as its own online shop. It employs 8,000 people, making it one of the largest companies in the clothing retail industry. At the end of its Fiscal Year 2017, NKD had approximately 6,200 employees in Germany. The range of the retailer founded in 1962 includes everything from the latest fashion for the whole family and functional athletic apparel to household textiles, seasonal decorations and a select assortment of brands.

About OpCapita

Founded in 2006, OpCapita is a European private equity firm specialising in the retail, consumer and leisure industries. OpCapita advised funds actively invest in companies where there is an opportunity to deliver improvements in profitability and create long-term, sustainable value. OpCapita’s team of in-house operating partners has decades of experience in consumer-facing businesses and a widespread network of contacts and specialists. The team adopts a hands-on approach to the companies in which it invests, drawing on exceptional management talent to deliver on its investments. Over the past twelve years, OpCapita has invested c.€550 million in businesses in the UK, France, Spain and Germany including the takeover of NKD a few years ago.

 

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