2018 Was A Record year for shoe brand Ecco
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Shoe brand Ecco reported record sales last year and its highest profit in its 55-year history.
Net sales reached €1.31 billion (US$1.49 billion) and profit before tax reached €201 million ($228.1 million).
“It is very satisfactory for the employees to see all their hard work and enthusiasm rewarded with such a good result, particularly when taking into account that the retail industry is going through a disruptive period and is facing many challenges,” said Ecco CEO Steen Borgholm.
The gains correspond with the launch of several new products last year, within both the firm’s shoe and leather divisions.
Direct-to-Consumer sales continued the fast growth of previous years, recording a 10-per-cent growth in brick-and-mortar retail and 36 per cent online. In particular, North America and Asia recorded strong overall market growth with 13 per cent and 11 per cent respectively. More than 50 per cent of Ecco shoes were sold in concept stores – online and offline.
“In a year Ecco connects with millions of consumers,” said Borgholm. “We still have a lot to do to take full potential of this in our marketing, sales, and operating model. Further investments in the development of new products will continue and help us generate a sustainable and healthy growth for Ecco also in the years to come.”
Questions & Answers
Q.Which specific regions contributed most to Ecco's overall market growth last year?
Which specific regions contributed most to Ecco's overall market growth last year?
North America and Asia showed strong overall market growth. North America grew by 13 per cent and Asia by 11 per cent, contributing significantly to Ecco's record results.
Q.What proportion of Ecco's shoe sales were made through its own concept stores, both online and in physical locations?
What proportion of Ecco's shoe sales were made through its own concept stores, both online and in physical locations?
More than 50 per cent of all Ecco shoes were sold through concept stores last year. This includes both the company's online retail channels and its physical brick-and-mortar locations.
Q.What was the growth rate for Ecco's direct-to-consumer sales last year, specifically for its online and brick-and-mortar channels?
What was the growth rate for Ecco's direct-to-consumer sales last year, specifically for its online and brick-and-mortar channels?
Direct-to-consumer sales grew significantly. Online sales increased by 36 per cent, while brick-and-mortar retail saw a 10 per cent growth during the record-breaking year.
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