Fashionable development

The first quarter of the year brought Empik Media and Fashion (EM&F) Group zł.296 million in sales revenue - 35.8 percent more than in Q1 2006. EM&F Group is the leading lifestyle-goods distributor on the Polish market, operating in the media, entertainment, fashion and cosmetics sectors. It also runs two language-school chains.

Still, the rise in revenue did not translate into profits, as the company posted a net loss of zł.2.8 million - a drop of 195.4 percent over the Q1 2006. "We have made a substantial amount of development investments," explains Jacek Bagiński, EM&F Group's chief financial officer.

In Q1, the group opened 22 outlets, comprising a total area of 7,700 sqm. In addition, EM&F Group launched franchise distribution points of brands such as Hugo Boss, Mexx, Spring, and Palmers as well as P4, the new mobile-phone operator. In Q2, the company has so far opened eight shops and two language schools.

"The affluence of Polish society is growing, and so is demand for our products," says Maciej Dyjas, EM&F Group's president. By the end of the year, the group wants to open 70-90 new shops, including up to eight outlets in Ukraine, with a total area of 25,000-30,000 sqm. The company's investments in its sales network will reach zł.80-90 million.

The group also plans to continue expanding its brand portfolio. It is launching a clothes brand for teenagers called Jennifer, and is negotiating other franchise brands. It will also continue developing its language-teaching business and its internet sales. The group will additionally continue with its foreign expansion, mainly in Germany and Ukraine.