(Filed Under Financial and General Interest News). The Etam Group, the French lingerie retailer with a huge presence in China, reported a tiny 0.3% decline in net worldwide sales in 2016, dropping to €1,292.1 million (about $1.4 billion at current exchange rates).
But a huge fall off in China in the first three months of 2017, caused worldwide sales for the company to drop by 7% in the quarter.
In 2016 “The Group’s performance varied significantly by region: In Europe, net sales increased thanks to the solid performance of the lingerie activities, both online and offline and in all countries. In China, net sales were severely affected by the decline in footfall and the slowdown in consumer spending in department stores.”
In the first quarter ended March 31, 2017, China sales dropped 23.9% compared to the same three months last year, while sales in Europe were up 2.1%. As of March 31, 2017, Etam Group had a total 3,854 sales outlets: 986 in Europe, 331 international franchises and 2,537 in China.
“Due to the aggravated decline in sales and operating losses at Etam China, changes were made to the management team with the departure of the chief executive officer, replaced by a tandem constituted of a retail president arrived on 8 February 2017 and a brands director to join in May, a team whose mission is to refocus priorities on the product. The situation in China affects significantly the Group’s results at 31 March 2017.” — NM
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