Deichmann-Obuwie emphasizes that last year was not an easy period. The company continued to face post-pandemic difficulties in the delivery of goods. High sales plans and the ongoing inflation crisis
did not facilitate their implementation.
Deichmann notes cooler consumer moods
– High inflation made our customers carefully analyze their expenses and, as a result, bought fewer pairs of shoes. Despite unfavorable economic factors and the ongoing armed conflicts in Ukraine and between Israel and Palestine, which affect the entire world economy, including our business, the company generated a profit – the company comments in the financial report.
PLN 26 million profit of the Deichmann chain in Poland
The company recorded a gross profit of PLN 26,171,154 for 2023,
thus maintaining a high level of own cash, without the need to use external sources of financing.
In 2023, the company achieved EBITDA (PLN 41.5 million) and net profitability at a lower level than last year, this was due to the deterioration of the margin compared to 2022 and cooler consumer sentiment.
Source: Report of the DEICHMANN-OBUWIE company
The financial situation was stable enough for the company to pay a dividend of PLN 20,000,000. There was no need to reduce employment or eliminate jobs. Moreover, the company's stable financial situation and prospects for further development resulted in the extension of lease agreements in shopping centers and parks.
The company finances its operations from current financial proceeds from sales. Due to the nature of the business (retail sales for cash), additional sources of financing are not needed. Investment purchases and the costs of further expansion can also be financed from current funds without the risk of loss of liquidity.
Deichmann wants to open 17 stores in retail parks
In 2024, the company plans to open 17 stores in retail parks in smaller towns such as Nowy Targ, Rawicz and Oleśnica, where so far residents have not been able to take advantage of the offers of Deichmann-Obuwie. All new investments are implemented in the new arrangement concept 3.0. A gradual increase in profitability is planned, in particular thanks to economies of scale resulting from the company's expansion and development.
Purchases of non-financial fixed assets in 2023 amounted to PLN 39,832,654 and planned expenditure on new openings, relocations and reconstructions amounts to approx. PLN 48,361,000
Deichmann-Obuwie was established in 1996. The main activity is retail sale of footwear, clothing, textile and leather products. The sole shareholder of the company is the German company DEICHMANN-SCHUHE Service GmbH. The company operates in 31 countries around the world and employs over 48,000 employees.
The history of the company dates back to 1913, when in the working-class district of Essen-Borbeck, in the heart of the Ruhr area, Heinrich Deichmann opened a shoemaker's workshop, which he ran with his wife Julia.
