Redan's restructuring leaves room for improvement

"There is improvement, but it is still not to a point which would satisfy the management board," said Bogusz Kruszynski, Redan's financial director.Demand is strong for its 'Top Secret' brand's new collection and, "Thanks to this we did not have to offer unprofitable discounts and the gross margin on sales increased to 33%, from 12% recorded a year earlier,"explained Kruszynski. But this figure is still too low, as this margin allows the company to turn a profit only in franchised stores, while for its own outlets the figure would have to stand at about 40%. Kruszynski refused to reveal any details concerning the company's results in Q3, but in his opinion the restructuring is slowly producing the desired effects. He only assured that the results will not be as bad as in Q1, when the company had a loss of zl.5.6 million. (Puls Biznesu, p.14) M.M.