COLLECTIVE EFFORT SECURES POSITIVE RESULT FOR BESTSELLER
Following a Spring defined by massive challenges, BESTSELLER is thankful and proud to announce that its annual report for the financial year 2019/20 includes an unexpected positive bottom line and only a small reduction in turnover.
BESTSELLER’s Annual Report shows a net turnover of DKK 24.1 billion (-6.5%) and a result before tax of DKK 776 million (-72%).
“With this year’s result, we find ourselves a long way from where we should have been under normal circumstances. Taking into consideration the current global situation and the massive challenges both society and we as a business have faced, we can only be proud and satisfied to report a profit,” says Anders Holch Povlsen.
“A positive result has only been possible thanks to a wholehearted collective effort from all our wholesale customers, partners, landlords, suppliers and – last but not least – the colleagues in our stores and at our offices. We are proud that this close cooperation has meant that we have been in a position to provide extraordinary support to our suppliers and wholesale customers, as well as pay back the support package we received from the Danish government.”
Retaining stores despite market challenges
“The global challenges have left a clear mark on large parts of our business. Certain markets – for example India, North America and South America – are to a certain extent at a standstill business-wise. We are, however, seeing that central and northern Europe is quickly finding its feet again, while southern Europe is also moving forward. Generally, it will require significant hard work to get back to where we were,” Anders explains.
“Following a difficult Spring, our store portfolio is more or less unchanged – both in terms of our own stores and partner-owned stores. One of the primary reasons for this is the close dialogue we have with our landlords, which has meant that we could maintain more leases than expected. We will, as always, adjust our store portfolio depending on each market’s profitability.”
E-Com, digitalisation & sustainability
“Compared to last year where our online business didn’t live up to expectations, there is a more positive feeling this year. We are good at reacting to the market and during the past six months we have managed to markedly increase our digital turnover. The collaboration we have with our talented partners has played a significant role here,” Anders says.
“In the current financial year, we expect further growth in this area of the business, just as we will continue to accelerate and invest in sustainability and digitalisation, which – to a great extent – sets the course for BESTSELLER’s development.”
An extraordinary effort
“I want to say thank you to our talented colleagues for an extraordinary effort in 2019/20. An effort that has meant we – despite great challenges – managed to achieve a positive result. In every section of our business, I have seen fantastic fighting spirit and a will to succeed – even in difficult circumstances. I look forward to regaining momentum and achieving further positive results together,” Anders concludes.
FY 2019/20 – KEY NUMBERS
Net turnover: DKK 24.1 billion (-6.5%)
Result before tax: DKK 776 million (-72%)
No. of stores (own and partner-owned): 2,600 (-14)
The latest Sustainability Report for 2019 is available at about.bestseller.com/sustainability.
ECONOMIC CONTRIBUTION 2019/20
The contribution presented below is the sum of the direct and indirect taxes generated by BESTSELLER in the countries and regions where the company does business.
Total contribution: DKK 5.1 billion
(Includes VAT, employee taxes, corporate income taxes, custom duties and excise duties).
Contribution in Denmark: DKK 1.1 billion
(This corresponds to 21% of our total contribution. By comparison, Denmark accounts for 7% of our total turnover.)