Private equity firm Lion Capital has announced strong sales for Dutch retail chain HEMA as part of a strategic review.
HEMA registered €287m in net sales in Q2 of this fiscal year, which represents an increase of 3.3% compared to the corresponding period last year.
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In addition, the company witnessed a 40% increase in online sales over the same period last year, while adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at €24.8m, marking a 13.2% increase.
It posted a loss of €29.1m in Q2 due to one-off costs of €20.1m towards refinancing.
HEMA CEO Tjeerd Jegen said: “This past quarter was the tenth consecutive quarter that we increased like-for-like consumer sales. We attracted more customers on the back of our continued investments in our product range, stores, and online sales activities.
“Existing stores are performing well and we are opening more and more new stores. Today we announced that we are starting to explore strategic options for HEMA's future.”
The company attributed the lower net sales growth to the temporary closure of stores for refurbishment, as well as the reduction in the number of temporary outlet stores.
Credit Suisse has been appointed as advisor to look into various options and chart a business course for HEMA.
Founded in 1926, HEMA operates more than 700 stores in seven countries.
