Business news : Ecco Delivers Record-Breaking Year

Ecco, the giant Danish shoe manufacturer, reported revenue climbed 13.7 percent in 2012, to DKK 8.06 billion (U.S. $1.4 bn). Net earnings increased 23.3 percent to DKK 684 million ($119.2 mm). Pre-tax earnings grew 26.0 percent to DKK 1.14 billion ($200 mm).

Total volume for the first time exceeded 20 million pairs with 20.2 million pairs sold.

The performance represents a recovery from the flooding of Ecco's factory in Ayutthaya in Thailand in October 2011 that reduced its capacity overnight by a third.

“2012 became an exceptionally good year for ECCO. More than anything this was secured by an extraordinary effort by the entire global ECCO team along with solid performance in the marketplace by many of our successful products,” says Dieter Kasprzak, Ecco’s CEO.

By product category, Shoes and Accessories grew 13.0 percent to DKK 7.64 billion ($1.33 bn), according to its annual report. The Golf division “continues its strong performance” with the Ecco brand now the 4th largest golf footwear brand in the world. A highlight in Golf was the launch of the BIOM Hybrid.

Also strong on the footwear side were formal products in its Men’s division and new Sculptured products in its Ladies division. Ecco Offroad, BIOM Lite Ladie's and BIOM Grip Men's were bestsellers in its Performance division. The BIOM Hike was named hiking boot of the year by the Scandinavian Outdoor Group.

Ecco’s accessories business, which includes belts, handbags and shoe care products, saw 15 percent growth.

Ecco’s Other category jumped 27.2 percent DKK 425.1 million ($74.0 mm). External sales in the Ecco Leather Group grew 29 percent.

By region, Americas jumped 20.7 percent to DKK 1.46 billion ($250 mm). Ecco said it realized double digit sales growth in the USA, “which reflected increased market share in important product categories.” In Canada, the market position was maintained. By the end of 2012, 87 Ecco branded stores were open in the Americas region, of which 72 were owned and operated by Ecco.

Ecco’s Asia/Pacific saw the largest gains, rising 35.4 percent to DKK 1.85 billion ($320 mm). Its EMEA region increased 3.5 percent to DKK 4.32 billion ($750.0 mm).

In mid-2012, Ecco simplified its management structure. its three regional sales organization in North America, Asia and EMEA were brought together in reorganization. For 2013, Ecco expects a "year of consolidation after the extraordinary growth during 2012. This growth will be lower than in 2012, but Ecco has strong new products in the market and also expects positive results from its reorganization."

( Source SportsOneSource )