Despite a strong first quarter, Fnac Darty upholds its outlook for 2021, targeting slight growth in sales and operating profit compared to 2020.
Lockdown effect
Fnac Darty, which also owns Vanden Borre, had a good first quarter. The French electrical group posted sales of 1.82 billion euros, up 22 per cent over the same period last year. The specialist in cultural, leisure and household items achieved this growth despite the Covid restrictions in just about all the countries it operates. Online sales increased by 45 per cent and now represent 28 per cent of total sales. On the other hand, Fnac Darty also benefited from an advantageous comparison effect. After the first lockdown took effect on March 15 last year, the vast majority of stores had to close their doors for weeks.
Sales in the France-Switzerland region rose by almost a quarter to 1.51 billion euros. All types of household appliances sold very well, as did consumer electronics for home use. Fnac Darty is also increasingly focusing on diversification and recorded double-digit growth in the Home & Design, Urban Mobility and Games & Toys segments. During the quarter, the company ventured on an exclusive partnership with RED Electric, the French leader in electric scooters, for the distribution of its innovative E-model.
In Belgium and Luxembourg, sales rose 16.7 per cent to 168 million euros, driven by strong demand for household products and other technical products. In Spain and Portugal, there was a modest growth of 3.5 per cent.
Caution
Despite the very encouraging start of the year in a continued uncertain health crisis, the group upholds its outlook for 2021, targeting slight growth in revenues and operating profit compared to 2020. In particular, the company refers to the ticketing business, which will not return to normal levels before the second half of 2021, at best. Furthermore, Fnac Darty expects the economic recovery in the Iberian Peninsula to be slower than in the other countries in which the group operates.
