Business News February 2018

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

Lacoste and Pentland form joint venture

The French sportswear label Lacoste and its shoe licensee Pentland have formed a joint venture in which both partners have equal shares. The new enterprise is located in the Pentland headquarters in London. Lacoste’s motivation for the joint venture is its aim to achieve direct control over the brand distribution. After garment, shoes are the second most important sector for Lacoste. Between 10 and 20 percent of the total turnovers of two billion Euros are achieved with shoes. Since 1991, Pentland has been Lacoste’s shoe partner. While the new unit in London will in future execute the development and design of the shoes, the worldwide distribution – except Great Britain – will be directly made by Lacoste. In Germany and Austria, the Lacoste Germany GmbH in Munich lead by Marko Dippe will take over the distribution. “The smooth transition for our partners is our most important short-term goal.” says Dippe. That’s why the contact person in the sectors distribution, marketing and customer service will remain available. So far, the distribution of Lacoste Shoes has been executed by P.B. Footwear in Bad Reichenhall.

Schuhe24 achieve record turnover

Online platform Schuhe24 has ended the year 2017 with a record turnover. In total a turnover of 26 million Euros has been achieved in 2017 with corresponds to a doubling of previous year (13 million Euros). Dr. Dominik Benner, founder of Schuhe24, mainly sees the range and internationality as cause for the growth: “We have successfully occupied niches, that players like Zalando do not serve. Furthermore, our foreign shares top thirty percent for the first time.”

Leder & Schuh on growth course

The Leder & Schuh AG has closed its first fiscal year after the strategic re-orientation with a plus in turnover of 3.6 percent (374 million Euros) for its two retail brands Humanic and Shoe4You. In the fiscal year 2016 the group turnover amounted to 413 million Euros, however, therein was still the turnover of the closed distribution line Jello. “After years of corporate structuring we have been growing again since 2016”, says Werner Weber, Managing Director of Leder & Schuh AG. “In total roughly ten million Euros have been invested in brand growth.” The major part was invested in the new opening of seven stores and numerous store modifications as well as the advancing digitalisation of the business model (inter alia the introduction of the “your Humanic-Club”). The enterprise employs roughly 2,300 workers and currently operates 206 stores.

Steve Madden increases turnover

In the past fiscal year, the American shoe brand Steve Madden has increased its turnover by 10.5 percent to 1.5 billion Dollars. The growth mainly results from increased wholesale turnovers that have risen by 12.1 percent to 1.3 billion Dollars. Without the take over of the shoe label Schwartz & Benjamin the plus amounted to 5.0 percent and 1.2 billion Dollars. Retail turnovers only rose by 3.6 percent to 272.2 million Dollars; actually on a like-for-like basis there was even a loss of 3.2 percent.

Kering separates from Puma

The French luxury brand group Kering divest its majority interest in the Franconian sports goods manufacturer Puma. Kerig will distribute roughly 70 percent of the total Puma equity as dividends in kind to its shareholders. In future the group wants to focus on the luxury segment with brands like Gucci, Yves Saint Laurent or Brioni.

European shoe exports rise significantly

The shoe exports of the European Union have risen by 7 percent to 20.56 billion Euros in the first half-year of 2017. In total the 28 EU countries have exported a billion pair of shoes and thus 3.6 percent more than in previous year’s period. Eight countries amounted to more than 83 percent of the exports. Most important exporter was Italy (4.59 billion Euros) leading before Germany (3.18), Belgium (2.97), France (1.58), the Netherlands (1.52), Spain (1.43), Portugal (0.96) and Great Britain (0.91). Besides Great Britain (minus 4 percent) all other countries registered a plus in exports. The strongest increase in export registered Germany with 26.2 percent in the first half-year 2107.

Expo Riva on previous year’s level

The 89th edition of the Expo Riva Schuh taking place from 13th to 16th January has ended with more than 13, 000 visitors. Thus, about the same amount of buyers as in previous year came to the Garda Lake. In total, 1,455 exhibitors from 37 countries showed their collections for autumn/winter 2018/2019 as well as current goods for spring / summer 2018.

Zalando tops 4-billion turnover limit

According to preliminary figures, online dealer Zalando has achieved a turnover of 4,478 – 4,500 million Euros, a plus of 23.1 to 23.7 percent. The enterprise expects an adjusted EBIT of 209 – 222 million Euros for the same period, which corresponds to a margin of 4.7 to 4.9 percent (2106: 216.3 million Euros, 5.9 percent margin).

Salamander remains on growth course

In 2017, the Salamander Ltd, Langenfeld, has increased quantity and turnover of the Salamander wholesale by 17 percent each compared to previous year. Thus, for the first time a sales quantity of one million pairs of Salamander and Lurchi shoes has been reached. The company did not mention any turnover figures. Salamander informed that also in the pre-order spring /summer 2018 significant growths have been achieved – domestic as well in the relevant export markets.