Steinhoff integration protect margins amid falling sales
Steinhoff International has seen sales fall at its UK furniture operations but the integrated business model has protected margins.
The group said Sterling sales fell by 6% in the six months to 31 March at its chains Harveys and Bensons and its UK upholstery and bed operations, including Myers and Relyon, as ‘a result of a challenging post-Brexit trading environment and store closures.’ Like for like sales fell by 2%.
‘Margin in this territory increased by 60 bps [to 7.1%], driven by a resilient bedding market combined with the long-term strategy of optimising and reducing the size of the store estate,’ said the group.
However as the group reports in Euros, operating profits fell by 12% to €23m as sales dropped 19% to €325m.