Investor Relations
The English version of Hemtex Investment Relations site is not being updated, due to the current shareholder structure. Please visit our Swedish Investment Relations site for updated information

Business concepts, goals and strategies

Vision

Hemtex’s vision "Inspiration and renewal for all rooms" guides the Group’s development. Hemtex aims to ensure that customers in all countries find Hemtex so inspiring that they are enticed to refurbish their homes. This is a challenge that forces Hemtex to continuously improve its product range, store concepts and capacity to generate inspiring and marketable exposure.

Business concept

Hemtex’s business concept is to sell affordable home decor products that appeal to a broad spectrum of people. Accordingly, Hemtex’s product range shall comprise modern, up-to-date products that are highly affordable and offer excellent value for money. Hemtex focuses on a broad target group, regardless of the customer’s purchasing power, form of housing and area of residence.

Goals

Hemtex’s overriding goals were introduced in the 2006/2007 fiscal year. Several of the goals relate to targets over a business cycle. Hemtex’s overall goal is to retain its position as the leading home decor chain in Sweden and one of the leaders in the Nordic region and to achieve favorable growth and profitability. The objective is to achieve a market share of 15% in the Nordic market for home textiles. The company’s long-term financial targets are:

  • annual, average total sales growth exceeding 15%
  • an operating margin exceeding 15% over a business cycle
  • an equity/assets ratio of 30 to 40%
  • net debt/EBITDA that does not exceed 3

Given the current priorities as regards profitability within the existing store network, the Board of Directors decided to reduce the pace of new establishments. For the 2009/2010 fiscal year, four to six stores will be established, of which half will be owned by the Group. A review of the store structure is expected to result in a net reduction in the number of stores. During 2008/2009, a decision was taken to discontinue five stores, and about ten discontinuations will take place during 2009/2010. Combined, the announced measures will improve the operating margin to 13–15% over a three-year period.