Oct 21, 2014
Etam records a decline in its sales in the third quarter
Oct 21, 2014
The French clothing retail store announced on Thursday a 2.1% drop in its sales in the third quarter due to "disappointing" summer sales and a September that was too mild in Europe, while China remained a difficult market.
The group has not given any forecasts for the end of its financial year.
Between July and the end of September, Etam recorded 284 million euros in sales, down by 2.1%.
This number includes a negative exchange rate of 0.2 million euros due to the depreciation of the Chinese yuan faced with the euro. The group saw its sales drop 7.4% in China (-4.1% constant exchange rate) in a context of half-mast consumption.
Etam has for several months now been reorganising its activities in France, with a repositioning of its offer and fleet of stores.
In Europe, the retailer remains stable (+0.3%) at 200.3 million euros. France is experiencing a slight decline (-0.1%) while the rest of Europe is on the rise (+2.7%).
In France, "the summer sales were disappointing. Growth compared with the fall/winter sales was slowed down by the exceptionally mild weather in September," the group pointed out in a press release.
Per brand, Etam (ready-to-wear, lingerie and the Undiz label) remains in the black at +0.9% but with a decline in growth compared to the previous quarter (+8.1%). The group's other brand 1.2.3 saw a 2.7% drop in its activity.
Over nine months, the group's turnover stands at 882.4 million euros, slightly down (-0.5%) as reported (+0.4% excluding exchanges). Europe remains positive (+4.7%) while China is still in a marked dip (-10.6%) since the beginning of the year.
On 30 September, Etam had 4,141 retail stores, including 944 in Europe, 2,966 in China and 231 in international franchises.
In the first nine months of 2014, the group continued with the development of its network of lingerie activities in Europe and for export, with 28 store openings.
In France, a portion of the Etam ready-to-wear stores were transformed into expanded lingerie retail stores to welcome the new range of cosmetics (600 items) launched by the group at the beginning of October.
In China, the "fleet of concessions was reduced by 213 unprofitable units and the group opened 8 shopping centre stores," said Etam.
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