Etam net sales down by 2.1% in FY 2011

Wednesday, 18 April 2012

The annual result of the Etam Group shows it generated sales of €1,184.1 million in 2011, including a positive currency impact of €4.2 million 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 the Etam Group has chosen not to pass on fully in its selling prices.
The Group generated an EBIT of €41.5 million in 2011, down 21.3% versus 2010. EBIT was €16.1 million in Europe and €25.4 M€ en China. 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. 2011 operating income therefore came to €34.5 million.

Consolidated net income came to €11.3 million compared with €24.6 million in 2010. After China’s minority interests of €5.3 million, net income (Group share) totaled €6.0 million in 2011.
Etam’s EBITDA came to €89.3 million compared with €110.5 million in 2010. Gross operating investment came to €49.2 million in 2011, as opposed to €51.3 million 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 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.