JYSK reports record turnover
Despite many challenges, JYSK attained its highest-ever turnover during the FY2019/20, announcing a record turnover of €4.1b (+7.6% YoY).
The number of customers is close to the same level as the year before, despite the fact that the majority of JYSK’s stores were closed in March and April due to the coronavirus.
”I am very satisfied that, despite the challenges, we have been able to increase turnover by +7.6%,” says CEO and president of JYSK, Jan Bøgh. “It is a combination of good sales before coronavirus spread in Europe and Asia, and a significant increase in number of customers compared to previously, after we were allowed to reopen our stores.”
Among other things, Jan sees the increased turnover as a result of many Europeans choosing to invest in their homes, as borders closed and many people prepared for a summer at home.
”I am sure that a lot of people spent the travel budget buying new furniture for their house and garden, which has of course had a positive effect on the sales for JYSK. Furthermore, it has provided us with an opportunity to show even more customers what JYSK has to offer,” he says.
JYSK has also seen a significant increase in online sales, especially in countries where most of the retail stores were closed for a longer period.
It is expected that the full FY2019/20 results will be published within the next two months, and Jan expects that it will develop in a positive direction. ”Coronavirus does mean that we have seen a lot of extra costs in a number of areas,” he says. “On the other hand, it also means that we postponed planned investments, because a number of store activities could not be carried out. Therefore we have not rearranged or opened as many new stores as originally planned.”
With that in mind, he expects earnings to be “satisfactory”, and to further strengthen JYSK’s ability to invest more and regain a higher level of activity – while JYSK opened 106 new stores in 2019/20, the retailer plans to open more than 150 during the current financial year.
However, Jan underlines that the challenges JYSK faces in the current financial year will be even bigger than in the previous one. “As European governments have supported jobs and economy, a lot of companies have not met the real economic consequences of coronavirus during the previous financial year,” he comments. “I expect that this will affect a lot of companies in 2021, and if unemployment increases significantly, this also affect JYSK.” However, he also points out that JYSK has generally proven to robust during periods of economic crisis, thanks to its overall offering.