Etam Group sales increase 7.9 percent in H1

The Etam Group generated net sales of 645.4 million euros (727.1 million dollars) during the first half of 2015, including a positive currency effect of 38.8 million euros (43.7 million dollars) mainly due to the appreciation of the yuan against the euro. This represents an increase of 7.9 percent compared to the first half of 2014 or 2.3 percent like-for-like and at constant exchange rates.

The Group gross margin of 57.2 percent decreased by 1.5 points. In Europe, markdowns increased significantly, due to the poor performance of 1.2.3 collections, the consequences of a drop in activity in Russia and a more promotional competitive context. In China, off season sales had a negative impact on the gross margin. Furthermore, the costs of import of goods were affected by negative currency effects related to the rise of the US dollar against the euro.

Stable EBITDA but 1.2.3 brand sales suffer

In the first half of 2015, the Group generated a nearly stable EBITDA, at 27 million euros (30.4 million dollars). The operating income, affected by changes in depreciation, decreased by 4.8 million euros (5.4 million dollars) to 16.5 million euros (18.5 million dollars). In Europe, in a declining market, Etam and Undiz brands confirmed their strong sales performance while 1.2.3 brand suffered from the lack of attractiveness of its Spring/Summer 2015 collections.

The operating income came to 21.1 million euros (23.7 million dollars) against 22.2 million euros (25 million dollars) at 30 June 2014. In China, despite the improvements realized over the second quarter, the operating income of the first half amounted to 4.6 million euros (5.1 million dollars) against 0.9 million euros (0.10 million euros) at 30 June 2014. This result at 30 June 2014 benefitted from a significant reversal on stock provisions. Excluding the impact of offseason sales, the result has improved compared to the first half of 2014.

Consolidated net income Group share was 8.4 million euros (9.4 million dollars) against 10.2 million euros (11.4 million dollars) at June 30, 2014.