Russian retailer Detsky Mir's profit surges in third quarter
Nov 8 (Reuters) - Russia's biggest children's goods retailer Detsky Mir on Monday reported a 57.6% year-on-year increase in third-quarter net profit, benefiting from continued demand for online sales and as customer footfall stablised as pandemic restrictions eased.
Detsky Mir reported third-quarter net profit of 3.67 billion roubles ($51.54 million) compared with 2.33 billion roubles a year ago.
The retailer, which sells toys and baby food among other products, said it benefited from stronger seasonal demand in the quarter as children prepared to return to school, with stronger sales in footwear and stationery.
Sales of direct imports and private labels also supported the company's third-quarter results, as the retailer switched to direct contracts with manufacturers.
But Detsky Mir also flagged uncertainty about future COVID restrictions and new lockdowns imposed throughout Russia in early November, which limited store operations.
Last Wednesday, five Russian regions said they would extend a one-week workplace shutdown that took effect nationwide on Oct. 30 in response to a surge in COVID-19 cases.
Earlier this month, Detsky Mir reported third-quarter sales growth of 16.4% year-on-year as demand for its private labels increased and customer traffic stablised following the lifting of COVID-19 restrictions. Online sales in Russia jumped 43.7% year-on-year.
Detsky Mir faces increasing competition from other online retailers, including Wildberries and OZON, as customers move away from physical stores due to pandemic restrictions and lockdowns.
The company said it plans to pay interim dividends of 5.20 roubles per share for the nine-month period.
($1 = 71.2111 roubles) (Reporting by Caleb Davis. Editing by Jane Merriman)
