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Tag: Etam

  • Etam Sells China Ready-to-Wear Operations to Hong Kong Investor

    Etam Sells China Ready-to-Wear Operations to Hong Kong Investor

    The majority of the crippled Etam China retail business has been transferred to a Hong Kong investor.

    While the terms of the sale agreement have not been disclosed, French media refer to the Chinese business as being “ceded” and financial incentives may have been included to help offload the business.

    The deal includes the local businesses of brands Etam Weekend, ES and E & Joy, as well as a license agreement for the use of trademarks using the name Etam. However, the French textile company will retain its lingerie business, which is trading well, internationally, including in China.

    Etam China’s sales slumped 28.7 per cent in the second quarter of last year, to €48.4 million. Globally, Etam’s turnover for the first half of last year was €600 million, down 5.3 per cent. Since then, the company has delisted from the Paris stock exchange, so the current status of the business is unclear.

    Zhou is the founder and CEO of Jaoboo Fashion Group and is described as “a distribution expert in China,” according to French newspaper Le Figaro. He takes control “with immediate effect”.

    In a statement, Etam Group said the transaction reflects its strategy to focus on its core business internationally, the development of its lingerie brand.

    “Thanks to Mr Zhou’s experience, Etam’s ready-to-wear brands will continue to grow and win new customers throughout China,” said Laurent Milchior, CEO of Etam Group.

    Zhou added: “The Etam RTW brands are well known to consumers across China and I am excited to have reached an agreement with Etam Group to take the brands and business forward. With Etam’s strong customer base, its brand heritage and our expertise in China, I am confident we have a bright future ahead of us.”

    The transfer follows the an “exceptional” action plan implemented in July last year to put Etam China back on track, including closing outlets, reorganising logistics to a single warehouse, cutting costs and accelerating the sale of off-season products.

    Etam China closed 154 shops in the first six months of last year, leaving it with 2442 points of sale.

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  • Retail closures add to Wing Tai woes

    Retail closures add to Wing Tai woes

    Costs related to the closure of retail stores were among the factors contributing to reduced second-quarter earnings for Singapore’s Wing Tai Holdings.

    Store closures caused a 12 per cent rise to S$23.8 million in administrative and other expenses quarter-on-quarter, according to a stock exchange filing by the company.

    Lower rental income and depreciation from its Singapore retail outlets also resulted in a 20 per cent fall in distribution expenses to S$22.2 million from S$27.7 million. No dividend was declared for the quarter.

    Wing Tai’s retail division represents the brands Adidas, Fox Kids and Baby, Topshop, BCBGMaxazria, G2000, Topman, Burton Menswear London, I.T., Uniqlo, Dorothy Perkins, Karen Millen, Warehouse, Etam, Pumpkin Patch and Yoshinoya. The company also has hospitality, residential and commercial property interests.

    Also contributing to the second-quarter net profit fall of 85 per cent year-on-year to S$1.08 million were lower contributions from the property development segment and a higher tax rate. These were partially offset by a stronger share of profits from associates/JVs, and lower distribution expenses.

    Overall, the group said earnings had come in below expectations as its operating and sales environment had proved tougher than anticipated. However, it is confident it is well-positioned to ride out the current down-cycle with its portfolio of prime residential and investment assets.

    Cooling measures will continue to weigh on market sentiment in Singapore this year, the group expects, while economic conditions in Malaysia will probably keep sales soft.

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  • French lingerie brand Etam opens first China store

    French lingerie brand Etam opens first China store

    French lingerie brand Etam has opened its first retail store in Super Brand Mall, Shanghai.

    The 100 sqm store features a tasteful black, white and pink color scheme, displaying the sophisticated array of elegant French-designed underwear for women marketed under the tagline “so sexy, so chic”. It also stocks Etam’s swimwear, sportswear and legwear.

    Etam started selling its clothing in China in 1994 through wholesale channels and the market now accounts for about one third of its total sales.

    But despite the importance of the country to its business, it has not until now opened its own stores there.

    Founded in 1916, Etam is now sold in 4400 stores in 48 countries. The Shanghai store will sell the same lines as in Paris.

    China marks a major strategic expansion for the company which to date has only opened stores in Asia in the Philippines. Its store network is largely concentrated on Europe and the Middle East.

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