Etam Iger, the prominent French retailer specializing in women’s wear and lingerie, recently released its interim financial results. The European market remains highly competitive, with intense price wars continuing to pressure margins. Conversely, Etam’s performance in China has demonstrated impressive resilience and growth potential. Following strategic reorganization efforts and the launch of innovative product lines, the company experienced robust expansion within the Chinese market during the first half of the year, achieving significant increases in both sales and profitability.
For the first half of this year, Etam reported total sales of €500 million, marking a 1.5% decline compared to the same period last year. Meanwhile, operating profits dropped sharply by 29.6%, reaching €7 million. In Europe, pre-tax profits tumbled significantly to €2.5 million from €17.8 million in the previous year, while overall sales across its 1,155 stores in Europe contracted by 8%. Despite these challenges, Etam expressed intentions to reinforce its presence in Europe by focusing on more affordable clothing offerings to appeal to cost-conscious consumers.
On the other hand, the Chinese market delivered much stronger results. During the first half of the year, operating profits surged to €4.6 million, reversing a loss of €7.8 million from the prior year. Sales skyrocketed by 60%, climbing to €125 million. Since entering the Chinese market in 2009, Etam has pursued an aggressive expansion strategy. By opening 271 new stores over the past year, the brand now boasts a total of 2,400 locations in China. This aggressive rollout underscores the company's confidence in tapping into the vast consumer base and growing demand for quality fashion products in the region.
Looking ahead, Etam aims to capitalize further on its success in Asia while also exploring ways to stabilize its operations in Europe amidst challenging economic conditions.
Shaoxing Silver Coast Import and Export Co Ltd , https://www.silvercoastfabric.com