No forecasts for 2020. 2019 went well thanks to online sales. That’s the short summary of the recent past and near future of Ecco (and others), Danish manufacturer. Inside the last financial data posted, the brand has announced investments in its supply chain and the support for generational change.
Recent past
Ecco closed 2019 with 1.36 billion euro in sales, +4% in comparison to the previous year. Earnings before taxes decreased slightly, from 201 million to 196 million euro. Online sales grew by 22.2%, and those made in brand-stores were up by 8.2%. Asia performed well (+17.4%), while Europe did not (-7%). “The transformation of the footwear segment continued throughout this last year. Our sector is characterized b limited growth and a shift in retail channels. Ecco took huge steps in the right directions in this challenging environment”, stated its CEO, Steen Borgholm.
Near future
Borgholm is convinced that 2020 will be the start of a decade during which sustainability and digitalization will shape the new footwear industry. CRV permitting, of course. Not by chance, with regards to the near future of 2020, the Danish group explains in a note that “the only certain thing is that the consequences of the pandemic will be serious”.
Supply chain
Ecco manufactures in Portugal, Vietnam, Slovakia, Indonesia, Thailand and China. According to what reported by Schuhkurier, the Danish group is building a new plant in Vietnam which will substitute the existing one. Production should begin within the end of the year. Additionally, Ecco is building a new automated site in Bredebro, Denmark. This stie should also open by the end of 2020. The group’s Slovakian site added a new automated machine capable of producing 2,000 pairs of shoes in 7 hours. “Ecco’s innovation will continue to evaluate the traditional production methods for shoes and leather”, stated Borgholm to the Schuhmart press.
Generational change
Ecco started the generational change process in 2019. Hanni Toosbuy Kasprzak, daughter of the company’s founder, Karl Toosbuy and president of the company’s Monitoring Council, has underwritten the agreement with her two children, Anna e André Kasprzak, both involved in the business. In other words: Ecco is destined to remain a family business in the future.
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