Business News December 2017

TFL publishes every month business news with focus on the leather industry, on a worldwide basis.

Record quarter for Skechers

With a turnover of 1.095 billion Dollars (+16.2 percent) Skechers has achieved a new quarter record. During the first nine months the sports and lifestyle brand made 3.194 billion. Strongest growth factor was the international wholesale business with a plus of 27.2 percent. 53 percent of the total turnover are achieved abroad. The operating result rose by 12.7 percent to 116.5 million Dollars. End of September there were 2, 428 Skechers shops worldwide, 623 were operated by Skechers, the rest were operated by partners.

Primetime.shoes draws positive interim conclusion

The organisers of the new Frankfurt shoe fair Primetime.shoes draws a positive interim conclusion three months prior to its start. Acquisitions as well as presentations are running at full speed. Mainly from abroad positive feedbacks are coming. Shoe associations from Italy, Spain, Poland, the Czech Republic, Turkey and Portugal have confirmed their support. Especially the concept of dividing into country pavilions was welcomed. According to the organisers, several contingents of country pavilions have already been fully booked. The hall on the Frankfurt fair area comprises 10,250 square metres, 7,000 of which are planned as exhibition space. The hosts have set as their goal for the next event in January 200 exhibitors and 5,500 specialist visitors. Mainly Eastern Europe, the Middle East, South Africa and the Asian area are showing interest.

Vietnam continues to sell more shoes

The Vietnamese shoe industry is on a further growth course. According to the shoe industry association Lefaso, shoe exports rose by 13.2 percent to 7.06 billion Dollars during the first half-year. Most important sales market remains the USA to where shoes worth 2.45 billion Dollars have been exported. Further markets are China (522.5 million Dollars), Germany (493.8), Belgium (454.7) and Japan (364.1).

Lineapelle announces autumn date

The Italian leather and components fair Lineapelle has announced the date for its autumn event. The fair will take place from 25th to 27th September in Milan. The spring event will also take place on the fair grounds in Rho from 20th to 22nd February.

Zalando: growth instead of gain

Online dealer Zalando has announced the definite figures for the third quarter. According to these the turnover rose significantly by 28.7 percent to 1.075 billion Euros. During the same time period the online platform for fashion achieved an adjusted EBIT of 0.4 million Euros compared to 19.5 million Euros in the third quarter of previous year. The number of active clients rose compared to the previous quarter by a million to 22.2 million. On average, Zalando customers placed 3.8 orders more than ever before during the past twelve months. “The strong turnover growth underlines our growth ambitions and shows that our investments are paying off already”, Co-CEO Rubin Ritter said. “For the fourth quarter as well as for the coming years we are further focusing on growth. We are pursuing the target to double our business by 2020 and will continue to place investments in order to reach that goal.” During the first nine months of 2017 the capital expenditure of Zalando amounted to 175.6 million Euros excluding acquisitions. The investments were mainly placed into the company own logistics infrastructure as well as in software developed in-house.

Supremo stays on strong growth course

Supremo Shoes & Boots Handels GmbH (Pirmasens) remains on a strong growth course. The company announced that the orders placed at the just terminated order period for spring/summer 2018 are more than 22 percent above previous year’s figures, in terms of value the turnover rose by even more than 24 percent. Also the average price was slightly above the one of previous year’s season.In the coming year the turnover is to amount to about 50 million Euros. This is a pure wholesale trade turnover as the company does not operate an own retail trade – neither local nor online – and wants to keep it that way for the future. Also the affiliates Supremo Oriental Ltd in Hong Kong that supplies major clients both domestic and abroad registers rising turnovers that will again break the 100 million US Dollars limit. A stable and continuing development of the enterprise seems certain, considering that the license agreement with Tom Tailor was extended by a further four years just this summer. Supremo Shoes & Boots Handels GmbH was founded in 1997 together with its affiliate Supremo Oriental Ltd. More than 8.5 million pairs of shoes are sold and delivered yearly in Hong Kong. Besides trade and own brands Supremo exclusively distributes shoes of the license brand Tom Tailor as well as Tom Tailor Denim.

CCC tops previous year’s turnover

During the first ten months 2017 the Polish shoe retailer CCC S.A. has achieved a growth in turnover of 30.9 percent and thus raised its turnover to 780 million. Already now this is more than during the entire 2016 where 750 million were achieved. The turnover increase in the e-commerce, that rose by 114.8 percent compared to the same period of previous year and that is already being operated in ten countries, continues to be rapid. End of October, CCC S.A., whose shares are listed on the Warsaw stock exchange, operated around 900 stores in 16 countreis, 77 of which in Germany and 45 in Austria.