Apr 20, 2015
2 minutes
The Etam group had a rather good 2014
Apr 20, 2015
The Etam group is maintaining its rank among other distributors. Despite the grim climate and its recurrent problems in Chinese, the French retailer recorded a double-digit net income up 13.3% at 24.1 million euros in 2014. The current operating profit went up 5.4% to 51.7 million. And the gross margin rate increased 1.1 point, to 59%.
A consequence resulting from the favourable net impact of the remaining stocks sold in China and the improvement of the ready-to-wear sales margins in Europe.
Positive data following a very slight growth in revenue, 0.4 point, to 1.220 billion euros.
Of course, all of the chains and regions did not obtain the same results. Etam in Europe recorded a 3.1% growth in its comparable activity. But the chain also recorded a drop, of 3.6%, in China. The 1.2.3 chain remained fairly stable.
Overall, the group recorded a 4.3% increase in its revenue in Europe, at 838 million euros, while the current operating result decreased less than 1%, to 58.2 million euros.
The Etam retail chain (including Undiz), across all of its regions, recorded 679.1 million euros in revenue, a 5.4% real growth and 3.1% comparable growth. The current operating result decreased 1%, to 40.1 million.
The retail group has set a lot of goals for 2015. At Etam, it is notably aiming for an expansion of its international product offer so as to accelerate development, the growth of alternative sourcing zones to counteract the effect of the dollar, and the continuation of the deployment of Etam beauty. The multi-channel and social media networks are of course a central focus.
Finally, still concerning Etam, the retailer is planning on opening new markets through new partners particularly in South-East Asia and South America.
At 1.2.3, the aims revolve around the revamping of the store network, the development of e-commerce, the acceleration of affiliation in France, the pursuance of deployment in Switzerland, and the opening of new territories: Chile, Peru, Colombia, Mauritius and Reunion (Island).
In China, the retailer is planning on creating a specific business unit for the shopping mall stores and the resumption of their development. Although there are still plans to close corners, the system used when Etam first arrived in China, these closures should slow down.
At the moment, Laurent Milchior, leader of the group, does not have any plans for external development. But he is not against the idea, even if the Etam strategy is to take care of its own brands first.
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