Business News November 2018

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

MarthaLouisa.com closed down

After not even a year the luxury shoes online shop MarthaLouisa.com ended. In October, the online shop that had started on the 15th March has been closed down. With their latest project, mytheresa.com founders Susanne and Christoph Botschen wanted to exclusively focus on the distribution of luxury shoes and products. However, this was obviously not appreciated by the consumers. Four years ago, Susanne and Christoph Botschen have sold their luxury fashion shop for 150 million Euros. “We have ventured an exciting experiment. The turnover development stayed behind expectations.”, says Christoph Botschen. The orders for spring/summer 2019 have already been cancelled.

Spain’s shoe exports remain stable

According to information by the manufacturers association FICE, Spain has exported 84.7 million pairs of shoes worth 1.39 billion Euros in the first half-year. This corresponds to an increase in value of 1.2 percent as well as a decline in numbers of pairs of 2.6 percent. The EU remains the most important market for Spanish shoes with a share of 79 percent in total volume and 72 percent in value. In the first six months of 2018 the exports to the EU achieved 1.00 billion Euros and 67 million pairs. France, Italy, Germany, Portugal and Great Britain were the most important export countries. Spanish shoe exports to non-EU countries rose above average by 7 percent.

Online shoe trade grows by 5.8 percent

The online turnover with shoes in the third quarter of 2018 has grown by 5.8 percent compared to previous year. This is the result of the consumers’ study of the federal association e-commerce and mail order Germany e.V. . According to that an online turnover of 951 million Euro including VAT has been achieved during the third quarter. Thus, the online shoe trade showed a slower development than the entire online trade, that rose by 11.6 percent in the third quarter. Cumulatively, the e-commerce turnover has risen by 11.3 percent since the beginning of the year and compare with the first 9 months of 2017.

Schuhe24 increases turnover forecast

The online platform Schuhe24 has increased its turnover forecast for the current year. “For this year, we had forecasted 40 to 50 million Euros in Volume, this, however, will be topped i.e. more than 55 to 60 million Euros. Our growth rate is approximately 113 percent compared to previous year, which is significantly above our expectations and branch average.” founder Dominik Benner says. Currently more than 900 specialist shops participate to Schuhe24, what is more since 2018 enterprises of the leather and textile branches are connected to Schuhe24. The cause for the increasing growth lies mainly in the expanded channel strategy and the increasing user numbers of the web shops operated by Schuhe24. “The TV campaign starting as of end of October will further contribute to expand our brand and popularity significantly.” Florian Brodersen, Head of Marketing at Schuhe24, says.

Skechers stays successful

The turnover of the American shoe manufacturer Skechers has risen by 7.5 percent in the third quarter 2018, the benefit, however, declined by 1.7 percent compared to the same period of previous year. In the third quarter, the turnover of the enterprise amounted to 1.17 billion US Dollars compared to 1.09 billion US Dollars in previous year, while the net profit declined to 90.7 million US-Dollars. The profit margin of the enterprise fell to 7.7 percent compared to 8.4 percent a year ago.

Dr. Martens grows strongly

A strong growth in Europe and the Middle East have boosted the turnovers of the British shoe company Dr. Martens. The turnover increased by 20 percent to 348.6 million pounds (394.7 million Euros) in the fiscal year 2017/18 that ended in March. The result before taxes, interest and depreciation (EBITDA) rose by 33 percent to 50 million pounds (56.6 million Euros).