ECCO - Best result ever
Strong product performance and increased geographical diversification contributed to yet another record-breaking year for the Danish shoe manufacturer
“2012 became an exceptionally good year for ECCO. More than anything this was secured by an extraordinary effort by the entire global ECCO team along with solid performance in the marketplace by many of our successful products,” says Dieter Kasprzak, ECCO’s CEO.
• Net revenue DKK 8,061 million – an increase of DKK 972 million equal to a growth of 13.7%
• Highest ever profit before tax DKK at 1,140 million – a growth of 26% over 2011
• The year’s result, after tax and minorities, at DKK 684 million is an increase of 23.3%
• Investments increased from DKK 339 million in 2011 to DKK 594 million
• The equity increased from DKK 2,931 billion to DKK 3,122 billion – a solidity of 55.0%
Strong progress in Asian and North American markets together with overall improved results from European markets helped create a very satisfactory 2012 result for ECCO.
“The positive development in several markets strengthened our geographical diversification, which contributed to the improved result,” says Michael Hauge Sørensen, Chief Operating Officer.
The markets in Asia now account for 24% of ECCO’s revenue against 20% in 2011; North America grew to 19% in 2012 against 18% in 2011; and as a result EMEA (Europe, Middle East and Africa) saw its percentage of revenue reduced to 57% - although the region saw its performance improve.
Strong product performance
ECCO saw great demand for its products. The Golf division continued its strong performance and ECCO is now the 4th largest golf footwear brand in the world. In Men’s shoes, ECCO had strong formal products, and in the Ladies’ division the new Sculptured products were much sought after.
The success of the Sculptured range demonstrates that ECCO has been able to develop high-heeled ladies’ shoes without compromising on comfort and design. In ECCO’s Performance division, a range of products became bestsellers. ECCO won the Scandinavian Outdoor Group’s award for the year’s best outdoor product and several other products also won awards.
ECCO’s accessories business, which includes belts, handbags and shoe care products, made good progress with 15% revenue growth. A new line of leather goods was launched utilising ECCO’s Scandinavian design capabilities and leather expertise.
ECCO Leather Group, which supplies ECCO with leather, also sells to external customers. External sales in 2012 grew by 29%, not least to the premium leather goods industry.
“Looking ahead into 2013, market uncertainty remains high and a number of economies will most likely experience difficulties. This might have a negative impact on consumer sentiment and demand. Thus, after several years of high growth, ECCO expects more moderate growth in 2013,” says Michael Hauge Sørensen.
• The ECCO Annual Report 2012 is available for download at ecco.com
• ECCO Group Communication, VP Steen Frentz Laursen; mobile +45 2065 3420