German retailer Metro Group has said it is on track to meet expectations in 2014, despite booking lower first-quarter sales dented by currency exchange and “soft” Christmas trading.
The company saw net sales decline 3.3% in the three month period due to adverse currency effects in many parts of Eastern Europe and Asia as well as discontinued sales of Real Russia, Romania, Ukraine and Media Markt China.
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Nevertheless, CEO Olaf Koch emphasised that adjusted sales were “in line” with expectations. “All in all, our new financial year got off to a solid start in spite of the still challenging economic conditions; soft Christmas sales prevented a better development. Our like-for-like sales development as well as our sales growth (adjusted for currency effects and portfolio changes) are nevertheless in line with our guidance.”
Adjusted sales, which strip out the impact of currency and portfolio fluctuations, rose 1.1%. Like-for-like sales were down 1.4% in the period, but adjusted like-for-like sales dipped just 0.2%, the company added.
During the period the company opened a total of 36 new stores across nine countries.
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By GlobalData
