Business News February 2017

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

Portuguese shoe industry on record track

In the first half-year, the Portuguese shoe industry has exported 40.1 million pairs of shoes worth 902.2 million Euros and thus 1.8 percent more compared to the same period of previous year. If this trend continues, it would be the 7th year in succession during which the southwest European country was able to raise its shoe exports. Most important markets for the Portuguese shoe industry remain the countries of the European Union where 87.4 percent of all Portuguese shoe exports go to. EU exports rose by 2.8 percent to 788.7 million Euros. However, Portugal could also raise its exports to several markets outside the EU. Exports to the USA, China and Australia grew above average. Shoe exports to Russia and Angola have declined.

Legero wants to cross the 5 million limit

Austrian shoe manufacturer Legero featuring the brands Legero and Superfit wants to cross the “5 million limit” during this year. Managing Director Rudolf Hampi announced this number of pairs at the presentation of the collection in Graz. In 2016 more than 4.968 million pairs of shoes of both brands have been sold. According to the market panel of EBG data, the German market share of the children’s shoes brand Superfit was 20.15 percent, of Legero 3.41 percent.

Turkey plans export increase

The Turkish shoe industry has increased its exports in 2016 by 5.5 percent to 708 million US Dollars. Most shoes were exported to Germany. Until 2023, Turkey wants to increase its foreign sales to 2.5 billion Dollars and thus more than triple it. Biggest buyers of Turkish shoes in the past year were Iraq with 11.5 percent, Germany with 6.2 percent and Saudi Arabia with 5.2 percent. Due to the normalization of the relationships with Russia further exports growths are expected.

Record year for CCC

Polish shoe group CCC S.A. has increased its turnover in the past year by 38.3 percent to 3.191 billion Zlotys (730 million Euros). In December turnovers rose by more than 50 percent to 335 million Zlotys (77 million Euros). In 2016, the retail industry achieved the biggest share in turnover. In this sector, CCC achieved proceeds of 2.735 million Zlotys 8626 million Euros) and thus 25.1 percent more than previous year. The shoe enterprise listed at the Varsovian stock exchange operates more than 800 shops in 17 countries.

Gabor achieves slight plus in turnover

Gabor shoes ltd has increased its turnover of 2016 by one percent to 396 million Euros (including licenses, Gabor Shop & Store Ltd and Gabor Footwear Ltd). The company sold 9.1 million pairs of shoes of all brands. The core brand Gabor achieved 347 million Euros in turnover, a plus of 2.3 percent. The Gabor sales quantity remained steady at 8.3 million pairs. Export share (turnover) rose slightly by 51.7 percent. The camel active brand achieved a turnover of 38 million Euros, the licenses contributed 11 million. Towards the end of 2016 there were 629 Gabor surfaces worldwide, managed mainly by independent dealers as monostores or shop-in-shops. The number of employees rose to 3257 at 31st December 2016, 470 of which in Germany and scarcely 2,800 in the two European plants in Portugal and Slovakia.

Zalando: First turnover billion within a quarter

Online fashion dealer Zalando SE has firstly reached the billion-turnover limit within a quarter. According to current figures the group turnover of the fourth quarter was at roughly 1.09 billion Euros and thus approximately 25 percent above previous year’s quarter. Zalando expects an adjusted EBIT in the amount of 81 to 104 million Euros for the same period. In the fiscal year 2016 Zalando generated a group turnover of more than 3.6 billion Euros. Thus, the company was 23 percent above previous year’s result. Zalando has thereby significantly increased its profitability. In the expired fiscal year the online dealer has doubled the adjusted EBIT to approximately 202 to 225 million Euros. “We have completed 2016 successfully. For the first time we have turned over more than a billion Euros within a quarter”, co-CEO Rubin Ritter rejoices. “Hence, clearly focussing on our customers has paid off. We are focussing on further growth and will thus continue to invest in the improvement of the customer experience in all our markets.“ In the course of 2017, Zalando is planning the opening of a logistics centre in Sweden, which is similar in size and scope to the logistics sites in France and Italy. The logistics centre is to be operated by a contractor and to improve Calando’s customer service the important North European markets in Sweden, Norway, Finland and Denmark. All published figures are provisional and unverified. Zalando will publish the final business figures for the fourth quarter and the fiscal year 2016 together with the management forecast for the fiscal year 2017 on the 1st March 2017 as planned.