SOURCE: ECCO

ECCO

March 31, 2017 12:22 ET

ECCO maintains high profitability in adverse markets

BREDEBRO, DENMARK--(Marketwired - March 31, 2017) - At ECCO's upcoming Supervisory Board Meeting, Dieter Kasprzak will step down as CEO. "I am grateful for the significant contribution my husband has made to the increasingly successful operation of the company over the past 13 years," says ECCO's Chairman, Hanni Toosbuy Kasprzak. "Dieter is handing over a healthy and financially strong company, whose products and reputation we are proud of. Furthermore, I am pleased to confirm Steen Borgholm as ECCO's new CEO."

Steen Borgholm says: "Despite generally slow growth in the global shoe industry, increased production costs, and fierce competition in 2016, ECCO has delivered a reasonable financial result and has even gained market shares."

ECCO reached a turnover of EUR 1,251m. This is on par with ECCO's turnover in 2015. The profit before tax was reduced from EUR 183m to EUR 170m, primarily because of currency fluctuations.

"2016 was a challenging year, but taking significant changes in currency rates into consideration, we delivered an acceptable result, which reflects the fine work of our organisation worldwide," says the new CEO.

Other highlights from 2016:

  • Number of pairs of shoes sold: +5%
  • Currency-adjusted sales development:
    • Sales through own shops: +10%
    • Sales through ECCO online: +46%
  • New concept shops (ECCO and partners): 100
  • Equity: EUR 596m
  • Solvency ratio: 58.2%

Looking ahead, Steen Borgholm expects 2017 to be another challenging year. "But, as we have undertaken many initiatives, increased investments, and strengthened the organisation, a result at least on par with 2016 is expected," Steen Borgholm concludes.

About ECCO
ECCO is one of the world's leading shoe brands combining style and comfort. ECCO's success is built on products with a great fit and top-quality leathers. ECCO owns and manages every aspect of the value chain from tanneries and shoe manufacturing to wholesale and retail activities. ECCO's products are sold in 88 countries from over 2,000 ECCO shops and more than 14,000 sales points. ECCO is family-owned, founded in Denmark in 1963, and employs more than 20,000 people worldwide. www.ecco.com

Attachment Available: http://www.marketwire.com/library/MwGo/2017/3/31/11G134687/ECCO_ANNUAL_REPORT_2016_FINAL_LOW-email-52442f09739e896995b76a0294ed5a39.pdf

Contact Information

  • Further information:

    Contact: Søren Kragh Pedersen, Head of External Communication:
    press@ecco.com, or alternatively (+45) 20 25 70 18 (direct), or via
    ECCO´s main number, (+45) 74 91 16 25.