Esotiq&Henderson: cost-cutting and online sales growth save results

The Esotiq&Henderson network ended Q1 2020 with a net loss of nearly PLN 2 million. Revenues amounted to over PLN 38 million and were slightly lower year-on-year. 

The results for the second quarter, i.e. the period when the trade lockdown caused by the coronavirus pandemic occurred, could be more problematic. 

"During the first quarter of 2020 and up to the date of the financial statements, the COVID-19 pandemic had a very significant negative impact on the socio-economic environment and on the Group's operations. Until 4 May this year, when the stores previously subject to the sales ban resulting from the epidemiological situation resumed operations, the main source of the Group's revenues was an online store and sales made through that part of the stationary franchise stores whose operations were not restricted as a result of the pandemic," reads Esotiq&Henderson.  

Decrease in sales during lockdown

"During the period of showroom closing, the Group recorded a decrease in sales by 60% compared to the corresponding period of the previous year. In order to prevent a deep negative impact of the pandemic, the Company's Management Board took a number of actions leading to a quantitative and valuable increase in sales in the online store, reduction of operating costs, obtaining government assistance and increasing health protection of employees and partners. As a result of these measures, between March and April 2020, compared to the same period of the previous year, sales of goods in the online store increased by 125% and the Group's operating costs were reduced by approximately 50%". - according to the Esotiq&Henderson Group report.