Etam 2013 net sales rise 1.4 percent

REPORT_ The Etam Group generated sales of 1,215.2 million euros (1,679.2 million dollars) in 2013, including a negative currency impact of 3.3 million euros (4.5 million dollars) relating mainly to the depreciation of the yuan against the euro – almost stable compared to 2012.

Like-for-like and at constant exchange rates, net sales increased by 1.4 percent.

Gross margin went down 0.6 point year-on-year to 57.9 percent, mainly due, in Europe, to less favourable purchasing costs in US dollars, and in China, to a sales mix evolution favourable to franchise and e-commerce. The contrast between the operating zones observed in 2012 continued in 2013. Europe has improved its profitability with an operating income of 58.8 million euros (81.2 million dollars) versus 39.6 million euros (54.7 million dollars), i.e. an increase of 48.6 percent, mainly through Etam brand. China has recorded a significant decline of its profitability, with a operating loss of 9.8 million euros (13.5 million dollars) against a profit of 1.5 million euros (2 million dollars) in 2012.

Consolidated

net income came to 19.6 million euros (27 million dollars) compared with 12.8 million euros (17.6 million dollars) in 2012. The group will propose at the next shareholders' meeting to pay a dividend of 0.30 euros (0.41 dollars) per share for 2013.

The Etam Group generated net sales of 326.7 million euros (451.4 million dollars) in the first quarter of 2014. This represents a decrease of 2.1 percent. Like-for-like and at constant exchange rates, sales grew 0.6 percent compared to March 31, 2013. In Europe, sales were up 7.3 percent or 6.2 percent like-for-like and at constant exchange rates. The group’s brands continued to grow through a range of attractive and innovative collections.

In China, sales were down 15.2 percent or 9.4 percent like-for-like and at constant exchange rates. The management team has been strengthened. A new management organization was set up in the first quarter of 2014 and a large-scale action plan is being deployed. In March, sales increased like-for-like and at constant exchange rates.