Ecco ‘not satisfied’ with 30% sales increase
Danish footwear group Ecco has said although it recorded a 30% sales jump in 2022 to €1.6 billion, its results were “not considered to be satisfactory” because profit was below pre-covid results in 2017-2019.
Disruptions in the global supply chain affected production, resulting in slower deliveries to customers, compounded by “significant” increases in freight rates.
To counter this, the company is building up stock and increasing production. However, this has affected the net working capital and the operational cashflow.
Covid-19 impacted the business significantly as retail operations in China experienced several temporary shutdowns.
Investments remained high at €76.4 million, a large proportion of which went into digitalisation.
However, the company noted strong sales from the third quarter and into 2023. It expects this to continue and profitability to improve.
