Etam net sales down by 2.1% in FY 2011

The annual result of the Etam Group shows it generated sales

of €1,184.1 million (Rs 8,107 crores) in 2011, including a positive currency impact of €4.2 million (Rs 28 crores) relating mainly to the rise of the yuan against the euro. This constitutes an increase of 5.1% versus that of 31 December 2010. Like-for-like and at constant exchange rates, net sales decreased by 2.1%.
 
The Gross margin went down by 1.4 points year-on-year to 57.8% - as a result of a deterioration of 1.8 points in Europe and 0.5 points in China - mainly due to higher mark-down rates at 1.2.3 and the rise in commodities prices, which theEtam Group has chosen not to pass on fully in its selling prices.
 
The Group generated an EBIT of €41.5 million (Rs 284 crores) in 2011, down 21.3% versus 2010. EBIT was €16.1 million (Rs 109 crores) in Europe and €25.4 m (Rs 171 crores). The Group continued its streamlining in 2011, in particular with an adaptation to the 1.2.3 store network and the exceptional write-off of store fittings, representing total non-recurring costs of €7.0 million (Rs 47 crores). 2011 operating income therefore came to €34.5 million (Rs 232 crores).
 
Consolidated net income came to €11.3 million (Rs 77 crores) compared with €24.6 million (Rs 168 crores) in 2010. After China’s minority interests of €5.3 million (Rs 36 crores), net income (Group share) totaled €6.0 million (Rs 41 crores) in 2011.
 
Etam’s EBITDA came to €89.3 million (Rs 611 crores) compared with €110.5 million (Rs 756 crores) in 2010. Gross operating investment came to €49.2 million (Rs 336 crores) in 2011, as opposed to €51.3 million (Rs 351 crores) in 2010, mainly dedicated to development and renovation of the store network in Europe and in China. The Group's net debt stood at €180.5 million (Rs 1,236 crores) at 31 December 2011 and gearing was 57.2%, stable compared with 31 December 2010. The Etam Group based in France is the International retailer of women's ready-to-wear clothing, lingerie and accessories. By March 2012, the Group had 4,478 sales outlets: 974 in Europe, 193 operated by international franchises and 3,311 in China.