Byggmax updates, lower growth in quarter 2 The sales growth in the second quarter was lower than in the first quarter. Until June 13, the sales growth in the second quarter was 6% compared to the same period last year, measured in SEK. In the first quarter 2011 the sales growth was 14%. The lower growth is primarily attributable to delayed new store openings and to lower sales growth for existing stores in May. Towards the end of April and during May, Byggmax also experienced problems with the website, when launching the new ordering assortment and the new webpage, which has had a negative impact on sales. Byggmax yesterday communicated that it will open a new store inTrondheimin September. This opening will most likely be the last opening that will be communicated for 2011, which means that the company would reach 13 store openings in 2011, 6 inSweden, 4 inFinlandand 3 inNorway. Byggmax believes that these 13 stores are an attractive addition to the existing store network, but the openings occur later in the year than planned. In total, this would lead to 3 openings in Q1, 5 openings in Q2 and 5 openings in Q3. The primary reason for the delay is that the permit approval process with local authorities takes longer than anticipated. However, the potential for up to 130 stores inSweden,NorwayandFinlandremains unchanged. The sales development in April was favourable, and the growth was higher than during the first quarter 2011. However, May was weak, which was expected, since one of the major holiday weekends, Ascension, occurred in June in 2011 (2-6 June), compared to in May in 2010. This weekend serves as many consumers' DIY kick-off for the season. Byggmax experienced capacity issues with the website when launching the ordering assortment and the new layout of the webpage. Even if the direct sales through the website are modest, it is an important sales communication tool for Byggmax. The problems have therefore impacted sales negatively. The new website, which was launched mid-May, is today functioning satisfactorily. Having analyzed the sales during the Ascension weekend, and the week thereafter, we have concluded that even though the sales development in the beginning of June was satisfactory, it was not at a level where it can compensate fully for the lower growth in May. Therefore, Byggmax has decided to communicate actual sales development already now. Management will provide more detailed comments in conjunction with the report for the second quarter in the middle of July. For more information, please contact Magnus Agervald, CEO Byggmax, mobile: +46 (0)76-119 00 20, e-mail: magnus.agervald@byggmax.se (magnus.agervald@byggmax.se)
Byggmax updates, lower growth in quarter 2
| Source: Byggmax Group AB