Etam Développement : Net Sales Of € 600.1 Million At 30 June 2017

Regulatory News:

Etam Développement (Paris:TAM):

¹ like-for-like and at constant exchange rates including internet sales
² including export sales
³ including Undiz

I. BUSINESS TRENDS

Over Q2 2017, the Group’s net sales amounted to €275.5 million, including a negative currency effect of €1.2 million mainly due to the depreciation of the Yuan against Euro. Net sales decreased by 3.2% compared to the second quarter of 2016. Like-for-like and at constant exchange rates, net sales decreased by 3.5%.

Over the half year to 30 June 2017, the Group’s net sales amounted to €600.1 million, including a negative currency effect of €2.7 million mainly due to the depreciation of the Yuan against Euro. Net sales were down 5.3% on a real basis or down 6% like-for-like and at constant exchange rates compared to 30 June 2016.

1. EUROPE

During the half year to 30 June 2017, the Group stepped up its digital and international expansion with the opening of 92 stores in a year, 81 of which are outside France, and focused its efforts on the shopping experience, generating additional net sales of 3.4% over the period. Like-for-like sales were down 1.2% against the backdrop of margin improvement.

Etam delivered a strong performance, while 1.2.3’s performance was disappointing. On a like-for-like basis in the second quarter, the increase in Etam’s net sales more than made up for the decline in net sales at 1.2.3. A new head of collection joined the 1.2.3 brand in July.

Over Q2 2017, net sales totalled €227.1 million, up 4.7% or up 0.3 % like-for-like and at constant exchange rates.

Over the half year to 30 June 2017, sales came to €458.7 million, up 3.4%. Like-for-like and at constant exchange rates they were slightly down, by 1.2%.

2. CHINA

Following on from the management changes announced in April, promoting more strongly product and design, a strategy review has been initiated that will help to clarify the Group’s strategy in China in response to the challenges of a fast-changing market.

An exceptional action plan is in the process of being implemented, the main aspects of which are the closure of points of sales, the reorganisation of logistics at a single warehouse, the reduction of costs and the acceleration of the sale of off-season products.

Over Q2 2017, net sales totalled €48.4 million, down 28.7%, including a negative currency effect of €1.3 million relating to the depreciation of the Yuan against the Euro. Like-for-like and at constant exchange rates, net sales fell by 20.2%.

Over the half year to 30 June 2017, net sales totalled €141.4 million, down 25.6%, including a negative currency effect of €2.9 million relating to the depreciation of the Yuan against the Euro. Like-for-like and at constant exchange rates, net sales decreased by 21.1%.

As stated in the first-quarter net sales press release, the situation in China continued to have a significant impact on the Group’s results in the period to 30 June 2017.

II. NETWORK DEVELOPMENT

At 30 June 2017, the Etam Group had 3,767 points of sales, including 987 in Europe, 2,442 in China and 338 international franchises.

During the first half of 2017, the Group opened 21 additional points of sales mainly abroad in its lingerie activities. The 1.2.3 store network, in France and abroad, was expanded by 5 points of sales. In China, the store network was reduced by 154 points of sales over the period.

III. OTHER INFORMATION

On 7 June 2017, the Milchior, Tarica and Lindemann families signed a shareholders’ agreement, as a result of which the families act in concert with regard to Etam Développement. This has resulted in the threshold of 30% of the Company’s share capital and voting rights being passed, triggering the obligation to make a public offer to buy the Company’s shares.

On 30 June 2017, Finora – the Milchior family’s holding company – acting on behalf of all of the families acting in concert, submitted to the AMF a public takeover bid followed by a squeeze-out. The offer was cleared by the AMF on 18 July 2017 and will open on 21 July 2017 for a period of 10 trading days. All documents and information relating to the offer are available on the Etam Développement website (www.etamdeveloppement.com).

The Etam Group is an international retailer of women’s lingerie, beauty, ready-to-wear clothing
and accessories with 3,767 points of sales as of 30 June 2017

Etam Développement: ISIN code: FR0000035743 / Reuters: TAM.PA / Bloomberg: TAM FP

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