Now, the children's brand Mini Rodini has summarized 2019. The company's sales decreased from 197 million Swedish krona in 2018 to 177 million last year. The result plummeted by over 200 percent and landed in the red, namely at minus 3.6 million Swedish krona. This is reported by Breakit.
At the end of 2019, the company reportedly launched a savings program, and in January, CEO Håkan Ström confirmed that Mini Rodini is facing tough times. The company's sales reportedly declined when the pandemic hit. The company then made several investments in, among other things, the organization, all store management and internal processes, as well as increased its focus on its e-commerce to improve growth and profitability.
ALSO READ: Another Swedish brand moves to the Chinese e-commerce giant
And now the negative result is explained by heavy "development costs and restructuring". The e-commerce investment is said to have had an effect, as Mini Rodini states in the report that its own e-commerce has grown strongly during the past year. The company sees that e-commerce operations will be the most driving force going forward.
With the above-described measures, in combination with the company's good prerequisites with a very strong brand, a strong sustainability and quality focus over time, and a strongly growing e-commerce, it is the board's assessment that the company can continue its operations without too much further change, the company writes.
But due to reduced purchasing volumes, short-time layoffs and cost savings during the pandemic, Mini Rodini flags a negative development regarding future results.
Uncertainty naturally exists regarding how long the crisis will last and the extent of any long-term effects.
Mini Rodini was founded in 2006 by Cassandra Rhodin, who together with her husband Joe Sandin owns 66 percent of the company. The remaining part is owned by about 40 shareholders.
The company has, apart from a successful e-commerce, several own physical stores and is available at more than 500 retailers worldwide. Last year, Mini Rodini took the step into China through a launch on the e-commerce site Tmall.