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Half-year net losses widened for Habitat outside the UK as rights-holder Cafom wrote down the value of its now-closed Norwegian arm.

 

The diversified French group booked a €11.5 million loss in the six months to end March for its Habitat division, which compared with a €9.3 million deficit for the same period in 2016–17.


Writing off the goodwill (€4.8m) of its Norwegian subsidiary, which closed in April 2018, had a major impact on Habitat's results, with its underlying EBIT loss narrowing by a third to €3.3 million.


Cafom's Habitat business is made up of more than 80 stores worldwide, half of which are run by franchisees.


The company already disclosed half-year sales figures back in May (see related), with revenue having fallen 4.6 percent to €60.7 million, largely down to the closure of the Norway stores. Underlying sales rose 5.9 percent.


Through franchisees, new stores are opening at Suhr in Switzerland as well as in Morocco, Thailand and Hong Kong (re-opening). It also last month opened a new franchise store in Algeria.


Cafom also owns ecommerce businesses in France as well as operating a wholesale division. It is unrelated to Sainsbury's Argos, which owns and operates the Habitat brand in the UK.


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