FRANCE: Etam FY sales down on currency effects
Negative currency effects have continued to weigh on Etam, after the French clothing and lingerie brand reported a slight decline in full-year sales.
Net sales reached EUR1.22bn (US$1.67bn) during the year to 31 December, down 0.1% on the same period in the prior year.
The company today (24 January) said this included a EUR3.3m negative currency effect relating to the depreciation of the yuan against the euro.
On a like-for-like basis, however, sales increased by 1.4%.
In Europe, sales rose 3.3% to EUR803.7m, while like-for-like sales were up 3.8%. Etam said its brand sales in France outperformed the overall clothing market.
Sales in China, meanwhile, declined 6.2% to EUR411.6m, and like-for-like sales fell by 4.3%. The company said it closed unprofitable department store concessions during the year, and disposed of stock from prior seasons at a selling price well below the cost price.
I. BUSINESS TRENDS
In the fourth quarter of 2013, the Etam Group generated net sales of €328.4 million, including a
negative currency effect of €2.7 million relating primarily to the depreciation of the yuan against the
euro. This represents a fall of 0.8% on a real basis or an increase of 1.9% like-for-like and at constant
exchange rates relative to the fourth quarter of 2012.
During the full year to 31 December 2013, the Etam Group generated net sales of €1,215.3 million,
including a negative currency effect of €3.3 million relating primarily to the depreciation of the yuan
against the euro. This represents a more or less stable performance on a real basis or an increase of
1.4% like-for-like and at constant exchange rates relative to 2012.
1. In Europe
In the fourth quarter of 2013, net sales totalled €219.2 million, up 5.2% or 4.7% like-for-like and at
constant exchange rates.
During the full year to 31 December 2013, sales came to €803.7 million in 2013, up 3.3% or 3.8%
like-for-like and at constant exchange rates.
In 2013, the Group achieved sales growth in all countries in the European Union like-for-like and at
constant exchange rates. In all regions, growth picked up in the fourth quarter.
In France, the Group’s brands outperformed the clothing and textiles market* in terms of sales.
Source Institut Français de la Mode at the end of December 2013
Etam Développement €10 961 739 - R.C.S. PARIS 308 382 035
Registered office: 78, rue de Rivoli, 75004 Paris – France
2. In China
In the fourth quarter of 2013, net sales totalled €109.2 million, down 11.0%, including a negative
currency effect of €2.6 million relating primarily to the depreciation of the yuan against the euro.
Like-for-like and at constant exchange rates, net sales fell by 5.0%.
During the full year to 31 December 2013, net sales totalled €411.6 million, down 6.2%, including a
negative currency effect of €3.2 million relating primarily to the depreciation of the yuan against the
euro. Like-for-like and at constant exchange rates, net sales fell by 4.3%.
To cope with the difficulties faced in China, the Group closed unprofitable department store
concessions and its network saw a net reduction of 184 points of sales. The Group stepped up its
efforts to dispose of stocks from prior seasons at a selling price well below the cost price.
E-commerce sales saw growth of more than 100% relative to 2012, although this still represents just
a small proportion of net sales. Sales generated by stores in shopping centres increased like-for-like
and at constant exchange rates.
II. NETWORK DEVELOPMENT
At 31 December 2013, the Etam Group had 4,313 points of sales, including 939 in Europe, 3,171 in
China and 203 international franchises.
In Europe and in exports, the Group streamlined and developed its store network in its lingerie
activities in 2013. It established the Undiz brand in Belgium and Morocco.
III. OTHER INFORMATION
On 18 November 2013, the Group obtained the unanimous agreement of its partner banks to extend
its syndicated credit facility in the amount of €200 million by one year from 12 December 2016 to 12
The seventh Etam Lingerie fashion show, a highlight of the Paris fashion scene, will take place on 25
February 2014 during Paris Fashion Week.
Original source: http://www.etamdeveloppement.com/en/finance/documents/2013_Net_sales_release.pdf
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