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Melon Fashion Group (the “Group”), one of the leading Russian fashion retail companies operating ZARINA, befree, LOVE REPUBLIC, and sela stores, announces revenue and key operating results for 9 months of 2021.
Highlights for 9 months of 2021:
• The Group's revenue for 9 months ended 30 September 2021 increased by 66.0% year-on-year and amounted to RUB 28.3 billion, surpassing revenue for the entire 2020.
• Total online revenue for 9 months of 2021 amounted to RUB 8.7 billion, an increase of 46.1% year-on-year.
• As at 30 September 2021 the number of stores reached 815 (including 238 stores operating under a franchise) in 178 cities across Russia and CIS compared to 809 as at the end of 2020.
Mikhail Urzhumtsev, CEO of Melon Fashion Group:
“We believe we entered 2021 with confidence and a solid background, having made it through a tough lockdown and having shown a great deal of flexibility and adaptability; we were able to maintain our performance in key metrics. We set an ambitious goal for ourselves: to surpass our previous results. And so, in the first nine months of 2021, the Group’s total revenue increased by 66% year-on-year to RUB 28.3 billion, exceeding the total revenue for full year 2020.
We continued to drive new business through expansion and innovation: we opened 67 stores over nine months 2021, introduced fundamentally new concepts for our ZARINA and LOVE REPUBLIC stores, and launched our first-of-its-kind fashion hypermarket, befree, with a gross area of 1,200 square metres. As of 30 September, the Group was managing 815 retail properties.
The Group’s other strategic priority is online: it continued to enjoy strong growth and, as of 30 September 2021, total online revenue accounted for around 30% of Melon Fashion Group’s sales as compared to 7% in 2017. The Group has taken strong positions on the Wildberries and Lamoda marketplaces.
Despite new challenges amid the pandemic and global logistics chain disruptions, Melon Fashion Group has demonstrated steady growth, and we intend to continue working to bolster our market positions and broaden our footprint.”
This announcement does not constitute an offer of securities for sale in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (“Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold within the United States absent an effective registration statement under the Securities Act or an exemption from, or a transaction not subject to, the registration requirements of the Securities Act, in each case also in accordance with any applicable securities laws of any state of the United States. Any public offering of securities in the United States, if and when made, will be made by means of a prospectus that may be obtained from the Company or the selling security holder and that will contain detailed information about the Company and management, as well as financial statements.
This announcement does not constitute an offer of securities to the public in any member state of the European Economic Area (the “EEA”) (each a “Member State”). No prospectus has been or will be approved in any Member State in respect of the Shares. This announcement is only addressed to and is only directed at persons in Member States who are “qualified investors” (“Qualified Investors”) within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (such Regulation, together with any applicable implementing measures in the relevant home Member State under such Regulation, the “Prospectus Regulation”). This announcement and the information contained herein must not be acted on or relied upon in any Member State by persons who are not Qualified Investors. Any investment or investment activity to which this announcement relates is only available to, and any invitation, offer or agreement to purchase, subscribe or otherwise acquire the same will be engaged in only with, Qualified Investors.”
This announcement does not constitute an offer of securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the Shares. This announcement is only addressed to and directed at persons in the United Kingdom who are “qualified investors” within the meaning of Article 2(e) of Regulation (EU) 2017/1129, as amended, as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the “U.K. Prospectus Regulation”). In addition, in the United Kingdom, this announcement is being distributed to, and is only directed at, such qualified investors (i) who have professional experience in matters relating to investments falling within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “FPO”), (ii) who fall within Article 49(2)(a) to (d) of the FPO or (iii) to whom it may otherwise lawfully be communicated (all such persons, together with “qualified investors” within the meaning of Article 2(e) of the U.K. Prospectus Regulation, being referred to as “Relevant Persons”). This announcement and the information contained herein must not be acted on or relied upon in the United Kingdom by persons who are not Relevant Persons. Any investment or investment activity to which this announcement relates is available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire the same will be engaged in only with, Relevant Persons.
Securities of the Company have not been and will not be registered under the applicable securities laws of Australia, Canada or Japan and, subject to certain exceptions, may not be offered or sold within Australia, Canada or Japan except under circumstances which will result in the full compliance with the applicable laws and regulations promulgated by the relevant regulatory authorities in effect at the relevant time.
Information contained in this document is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in Russia or to or for the benefit of any Russian person (including legal entities incorporated, established or having their usual residence in the Russian Federation) or to any person located within the territory of the Russian Federation, does not constitute an advertisement of any securities in Russia.