Etam Group net sales rise 0.7 percent in Q2

REPORT_ In the second quarter of 2013, the Etam Group

posted sales of 263.2 million euros (Rs 2,060 crores), including a positive currency impact of 0.7 million euros (Rs 54.8 crores) mainly related to the appreciation of the yuan against the euro. Sales were up 0.7 percent compared with the second quarter of 2012. Like-for-like and at constant exchange rates, sales increased by 1.4 percent.

Over the first half of 2013, the Etam Group generated sales of 596.8 million euros (Rs 4,672.5 crores), including a positive currency impact of 1.6 million dollars (Rs 12.5 crores) mainly related to the appreciation of the yuan against the euro. Sales were up 0.7 percent compared with the first half of 2012. Like-for-like and at constant exchange rates, sales were up 1.6 percent.

In Europe, in the second quarter of 2013, sales went up 1.8 percent or 2.5 percent on a like-for-like basis and at constant exchange rates. Over the first half of 2013, sales were up 2.6 percent or 3.3 percent on a like-for-like basis and at constant exchange rates. In a difficult context for the clothing market and with unfavourable weather conditions on the season, the group’ brands achieved satisfactory commercial performance. During the first week of summer sales in France, sales were slightly up and markdown rates remain stable like-for-like and at comparable period compared to 2012.

In China, the second quarter of 2013 saw sales go down 2.2 percent or down 2.6 percent like-for-like and at constant exchange rates. Over the first half of 2013, sales were down 2.6 percent - including a positive or down 2.3 percent like-for-like and at constant exchange rates. In a less dynamic market and having to face structural difficulties related to the positioning of its brands and the evolution of distribution channels, the group carries out actions on reducing inventories as well as on its product offer, its network and store concepts.

As of June 30, 2013, the Etam Group had 4,376 stores, including 932 in Europe, 3,238 in China and 206 operated by international franchises. In export markets, it opened 7 new franchises. In China, the group has reduced its store network of 117 units in department stores.