Yeah! AG, the parent company of McTrek, the German prize-driven outdoor chain, posted total sales of €30.5 million last year, up from €26.2 million in the previous year. The gain in sales was partially reached through an increase of comparable store sales in addition to three openings of new points of sale last year.
In return, Yeah! AG finally closed the last store under the Sine banner, a quality shop in the heart of Frankfurt, on Sept. 1. That's the store where Sine's and McTrek's founder, Ulrich Dausien, started his career of more than three decades in the German outdoor industry. Dausien was also the founder of Jack Wolfskin. Recently, the Sine store faced growing competition in downtown Frankfurt from 15 other retailers including department stores, sports and outdoor stores, and single-branded shops.
Partly due to the shutting-down of the Sine store, the sales increase in 2012 was not as high as projected, after Yeah! had planned an increase of 21 percent for the period. The mild first quarter followed by a rather rainy and cold summer in Germany led to lower margins due to necessary discounts. The fourth quarter, in return, was good though; turnover was up by 25 percent compared with the same period in the previous year, and the margins improved. The net result of the group for the entire year is expected to be around €1 million before taxes and non-recurring expenses.
The improved results were partly a consequence of a policy of a trading-up of the assortment and increased traffic in the online shop. In the fourth quarter, the company increased its equity capital by €600,000, which allows Yeah! to expand inventories that could be sold for better margins. For the current year, four new stores under the McTrek banner are on the agenda.