Ecco Sales up by 30% for Ecco in 2022 Annual Report
Including consolidated European sales entities, growth for the year was 18%. Profit before tax was up by 106% year-on-year to €88.2 million.
Ecco noted that shoe sales in 2022 grew due to stronger price realisation, easing higher costs from freight and raw materials.
Revenue for the company’s wholesale channel was up by 4.5% year-on-year to €601.5 million, while the retail channel achieves growth of 63.5% to €880.4 million.
In Europe, the Middle East and Africa, Ecco saw sales increase by 64.4% to €694.3 million while the Asia Pacific was up by 30.7% year-on-year to €141 million.
Greater China up by 9% to €392.7 million in 2022 and, finally, North America saw net revenue increase by 18% to €248.6 million.
By product, Ecco had a sales increase for footwear of 32.7% to €1.42 billion while accessories were up by 80.1% to €57.5 million and its leather business dropped by 0.6% to €103.8 million.
In its report, Ecco noted that it has four tanneries in Europe and Asia, primarily sourcing its hides from Europe and the U.S. and mainly using bovine hides.
Environmental achievements and goals were a key part of the report and Ecco highlighted that it reached 66% of waste recovered, reused and recycled in its tanneries in 2022, with 76% for its shoe factories.
Meanwhile, Ecco tanneries achieved three Leather Working Group Gold ratings and one Silver in 2022 while three were ECO2L re-audited and certified.
Looking forward to its 2023 fiscal results, Ecco said in the report: “The volatility and uncertainty in the world have increased substantially in recent years. Geopolitical developments could bring renewed challenges in 2023.
“Overall, Ecco is, however, anticipating improving supply chain circumstances with declining freight rates and improving transportation schedules. This will also affect working capital levels positively.
“Investment levels will be lower as the retail store portfolio is expected to decrease slightly in 2023. As a result, Ecco’s net sales and profitability are all expected to increase moderately, while free cashflow is expected to increase significantly in 2023.”
You can find the full Annual Report 2022 on the Ecco website.