Russian retailer X5 Retail Group has reported a fall in margins in the first quarter as it embarked on a promotional offensive to lure in customers.
Russian retailer X5 Retail Group saw its net profit jump by almost a quarter year-on-year in the first three months of 2014.
Go deeper with GlobalData
However, gross margin dipped from 24.4% in the first quarter of 2013 to 24% this year. X5 pointed to an increase in promotions at its Perekrestok and Karusel stores. Shares in London-listed X5 had fallen almost 3% today.
X5’s net profit increased 24.7% to RUR2.47bn (US$66.5m) for the first quarter of the year. Operating profit was up 11.8% at RUB5.9bn.
Sales were up 13.9% to RUB144.17bn as a result of space expansion and “the positive performance of maturing stores added over the past two years”. Like-for-like sales were up 6%.
X5 GDRs listed in London were down 2.92% at US$16.65 at 12:57 BST.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataClick here for the full results.
