Etam hit by declining Europe market, ready-to-wear sales
The Etam Group recorded net sales of 633.8 million euros (US$709.54 million) for the first half of 2016, a 1.8% downswing compared to 2015. Like-for-like sales were also down 1.8% on constant exchange rates, said the French firm, adding sales were impacted by a negative currency effect of 9.4 million euro mainly due to the depreciation of the yuan against the euro.
The Parisian undergarment and apparel group, which operates the Etam, Undiz and 1.2.3 brands, said consolidated net income was 6.7 million euros, down 1.7 million euros for the six month period, after "taking into account non-controlling interests" of -0.4 million euros against -€0.6 million in the first half of 2015.
The Etam group generated earnings before tax of 36.6 million euros, up 9.6 million euros compared to last year. Etam said operating income was affected by "negative changes in stock provisions and in the value of assets" reaching 15.2 million euros, down 1.3 million.
Europe proved to be a declining market for the group, while Etam’s ready-to-wear business was affected by the scaling back of its offering. Operating income totalled 17.8 million euros, down 3.3 euros million, Etam said in a press release.
In China, operating income came to -2.6 million euros compared with -4.6 million euros last year, reflecting a slight improvement against the backdrop of a fall in sales in department stores, it added.
In other news, Etam said the ninth edition of the Etam lingerie live show, marking the 100-year anniversary of the brand, will open Paris Fashion Week on September 27.
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