Le Tanneur & Co. improves in 2015

By

Sarah Ahssen

Published
Apr 12, 2016

In the 2015 fiscal year, the Le Tanneur & Co. group generated a revenue of €56.71 million, equivalent to a modest 1.4 % rise. In the same period, the French leather goods label's net losses amounted to €200,000, an improvement over the €2.68 million they had reached a year earlier.

Manufacturing activity for luxury labels recorded a 7.9% growth, reaching €31.3 million. The growth was notably due to a more settled social climate, allowing a normalisation in productivity and consumption, both in raw materials and components.

However, given the economic situation in France is still complex, business for own brands (Soco, Le Tanneur, etc.) has declined by 5.5% and 2.9% in like-for-like terms, down to €25.4 million. The group explained the sales downturn with re-stocking orders that were late in coming, due to a bad retail spell during the 2014 year-end festivities, as well as with the terrorist attacks which hit Paris in January and November 2015.

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Nevertheless, the Le Tanneur brand's revenue grew by 2% in the course of the year, with a 10.2% increase in retail sales. Sales were undoubtedly boosted by the installation of a new retail corner concept in department stores, and by the launch of an e-booking system from the website to the Le Tanneur stores, which in 2015 made it possible to generate sales for nearly 2,000 items and a value of €300,000. The brand also benefited from a strengthened media and communications plan.

Le Tanneur's retail network has been streamlined, and now it operates 52 branded stores, 32 of which are directly owned and 17 of which are franchised (including one in Luxembourg). The label also operates two franchised stores in Algeria and a website.
 
The majority shareholder, Qatar Luxury Group, has however frozen the development of its Qatari brand, and its leather goods production at the Belley workshop was stopped last May. The workshop, which employs about ten people, is now dedicated to manufacturing for other buyers.
 
However, while rumours of a sale have once again cropped up last month, Le Tanneur & Co. stated that the majority shareholder has renewed its financial support for the group, with a new cash advance of €8.5 million.