26 October 2016. Moscow, Russia. Detsky Mir Group ("Detsky Mir" or "the Group"), Russia's largest children's goods retailer, announces its unaudited operating results for 9 months of 2016, which ended on 30 September 2016.

KEY OPERATING RESULTS FOR 9 MONTHS 2016

• Group unaudited revenue increased by 36% to RUB 54.2bn, vs. RUB 40.0bn for the same period in 2015
• Like-for-like sales at Detsky Mir stores in Russia grew by 12.7%¹, with the number of checks growing by 4.2% and the average check increasing by 8.2%
• Group stores increased to 465 with total retail floor space of approximately 535,000 sq.m. as a result of the opening of 40 new Detsky Mir stores in 9 months 2016

Vladimir Chirakhov, CEO of Detsky Mir Group, said:

“Detsky Mir Group again confirmed its position as the leader on the Russian children's goods market in terms of volume and revenue growth. For 9 months 2016, we achieved a strong revenue growth rate of 36%. The approximately 12.7% growth in comparable sales (like-for-like) continued to be the main driver of revenue growth; it was achieved thanks to an increase of the average check size of 8.2% and an increase in the number of checks of 4.2%.

 “E-commerce continues to demonstrate solid financial performance. The Group's revenue from this segment more than doubled year on year for 9 months 2016. One of the main drivers of improvement in e-commerce is the successful integration of online and offline platforms, as well as the widespread presence of Detsky Mir stores in all key regions of the country, that allowed us to provide customers with timely deliveries“.

Detsky Mir Group continues to rapidly expand its retail chain. For 9 months 2016, we opened 40 Detsky Mir stores and one Early Learning Centre store; of these, 21 are in the Moscow region and two are in Kazakhstan. Detsky Mir is represented in 157 Russian cities and five Kazakh cities. At least eighty stores will be opened in dozens of cities in FY 2016, including at least five in Kazakhstan. 

The sales geography of the new product line for expectant mothers increased nearly six-fold in September. Now more than 200 stores provide customers with about 90 SKUs of the new products, most of which are produced in Russia. The product brands are Just Mom Ulla (Private label of Detsky Mir), FEST and SUCCESS. Maternity clothes can be purchased in the online store: www.detmir.ru.

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