The 2016/17 financial statements for the TOP-TOY toy group are not satisfactory. The wet summer was a contributing factor to a disappointing top line. Management has also had to acknowledge that the company’s investments in the future, in the form of a major new IT system, have had a greater impact on the company’s short-term results than was first assumed. The company believes, however, that the required changes have now been implemented, and that TOP-TOY is now well prepared for the future.
TOP-TOY today presents its 2016/17 financial statements showing revenue of DKK 3.4bn and an adjusted operating profit before depreciation and amortisation of DKK 139m. According to CEO Søren Torp Laursen, these results are not satisfactory. One reason for the results is an extensive modernisation of the company’s IT platform in the form of a major new system. The implementation has had greater-than-expected consequences for both revenue and costs. Additionally, margins have been under increased pressure, and the summer season saw lower revenue.
“The spring and summer season, which is very important to us, suffered from the poor weather that characterised the entire Nordic region, resulting in decreased consumer desire for outdoor toys,” explains Søren Torp Laursen.
He continues: “Our strategy is to compete on shopping experience as well as on price. We are still strongly convinced that this is the right approach, and we are therefore working to ensure a great experience for our customers, whether they shop in one of our more than 300 stores or online. We have also introduced new initiatives such as price match and very competitive prices on a number of selected brands. Furthermore, we are seeing a general increase in online sales, which fits perfectly with our focus on increased integration of our physical stores with our online shops, and we stand ready to service our many loyal customers in the upcoming and extremely important Christmas season.”
Over recent years, TOP-TOY has completed a major overhaul of the company. This was undertaken to prepare the group for a future featuring a volatile market, and involves the implementation of a large new IT system, new web shopping platforms and a conversion of the group’s physical stores.
“The Nordic retail market is undergoing fundamental change with consumer shopping behaviour changing rapidly. This is exactly why we have invested heavily in a new IT system which will help us modernise the company and ensure that we can meet future customer needs and offer our customers an excellent shopping experience,” says BoD Chairman Michael Hauge Sørensen.
Read the TOP-TOY’s 2016/2017 Performance report here
Read the press release in Danish here
For additional information please contact TOP-TOY’s Communications Team at +45 3067 3916