Leathergoods brand Le Tanneur back on track in 2017
Revenue for Le Tanneur was down 5.2% in 2016, but in 2017 the French leathergoods manufacturer got back on track. In the last financial year, it recorded revenue of €55.9 million, equivalent to a 4% increase year-on-year (+5.1% in like-for-like terms). In summer 2017, Le Tanneur, previously owned by the Qatar Luxury Group, was acquired by French group Tolomei, via a recapitalisation operation.
For the manufacturer, which was founded in 1898, last year's performance was driven by its contractor work for luxury labels, a segment in which revenue grew 9.7%, reaching €32.1 million. The company was happy to have been able to "respond to the increased needs of [its] clients."
But its own-brand business slumped by 2.9% (-0.5% in like-for-like terms), generating revenue of €23.8 million. A weak trend in direct sales and multibrand fashion/accessories stores in France was blamed, although Le Tanneur's department store business grew by 3.8%.
Le Tanneur currently operates a network of 48 monobrand stores, having closed down two of its French shops last year.
As for the forecasts for the current financial year, Le Tanneur said that "the recapitalisation has markedly improved the company's prospects, especially by endowing [it] with the resources to pursue expansion and to tap the expertise and experience in manufacturing and distributing luxury leathergoods for which Tolomei Participations is recognised."
Thanks to the net income produced by the capital increase, to the tune of €3.3 million, in 2018 Le Tanneur will be able to invest in a new IT system, in optimising its logistics capabilities and in a series of marketing initiatives to reposition the brand.
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