• FY profit up 3.9% to EUR23.9m
  • Sales rise 6.2% to EUR1.30bn
  • Gross margin drops to 58.7% from 59%
Positive currency effects helped to drive growth at Etam

Positive currency effects helped to drive growth at Etam

European women's wear, lingerie and accessories retailer Etam Groupe has posted full-year earnings and sales growth thanks, in part, to positive currency effects. 

Net income reached EUR23.9m (US$26.9m) for the 12 months to 31 December, compared to EUR23m in the same period of the prior year. 

Net sales increased 6.2% to EUR1.30bn from EUR1.22bn the year before. This included a positive currency impact of EUR60.7m relating mainly to the appreciation of the yuan against the euro. Like-for-like sales climbed 1.6%. 

In Europe, like-for-like sales were up 2.9%, helped by the lingerie activities of Etam and Undiz despite difficult market conditions. 

But in China, like-for-like sales declined 2.5% as the group chose to focus on improving the margin rate versus the volume of activity. 

Gross margin slipped 0.3 percentage points to 58.7% from 59%, due to higher markdowns in sales and the negative impact of a more expensive dollar on costs of goods. 

During the first quarter of 2016, net sales have edged up 0.9% to EUR349.2m, and like-for-like sales up 0.3%. In Europe, sales grew 5.6% to EUR226.9m, while China posted a 6.8% fall to EUR122.3m.