Etam 2007 S/S season gets off to good start in terms of gross profit
26 Apr '07
3 min read
Etam Developpement announces 2006 results. Net sales increased by 9.0% to €960.2 million. This includes a positive currency effect of €3.3 million relating to the rise in the Chinese yuan.
Like-for-like (excluding currency effects), sales moved up 4.1% (up 2.8% in France, up 18.3% in China and up 3.9% in other countries).
Gross profit: Gross profit increased at a weaker rate than sales, despite improvement in sourcing conditions, as a result of heavy discounting and impairment in inventories, particularly in Europe. However, the success of the winter end-of-season sales limited deterioration in gross margin, which stood at 60.8% compared with 61.2% in 2005.
Operating profit: Other operating expenses totalled €474.9 million (compared with €434.0 million in 2005), remaining stable as a percentage of sales. This was due to control of staff costs and other external expenses, offsetting the increase in rental charges. Depreciation and net provisions for impairment remained stable at €35.9 million.
As a result, profit from ordinary activities came to €73.2 million, up 5.0% compared with €69.7 million in 2005.
After a non-recurring charge of €1.5 million relating to the impact of the closure of the 123 Rivoli store, operating profit was €71.6 million (compared with €66.4 million in 2005). Operating margin was 7.5% in 2006, equal to that of 2005.
EBITDA increased by 23.3% to €119.2 million in 2006 compared with €96.7 million in 2005. After minority interests, net income (Group share) stood at €34.7 million 2005 compared with €33.2 million in 2005.
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