04-08 FOOT MAR10 news :Footwear_Jan10_p4_8 04/03/2010 10:59 Page 5
NEWS
WORTMANN turnover more than 830 million euros
Growth over 4 % despite economic crisis
Wortmann Schuhproduktionen Holding KG, based in Detmold, Worldwide 30,000 workers are involved in manufacturing for the
Germany, has released the figures for the first half of the current Detmold-based group of companies.
financial year, together with an estimate for the entire financial year The current financial year 2009/2010 has been influenced by a
2009/10 (ending on 31 May) on the basis of the currently existing number of extraordinary events, which – in the company’s opinion –
orders. In the first six months (1 June to 30 November 2009) a clearly demonstrates the critical importance of anticyclical action,
turnover of 407.6 million euros (GBP 361,2 million) (an increase of particularly in periods of crisis. Highlights of the past months were,
3.5 %) was achieved. among others, the start of the Tamaris TV campaign with over 1,500
A consolidated group turnover of over 830 million euros (GBP 720 advertisements per season, the award as best shoe manufacturer of
million) is expected for the current financial year. In the previous 2009 and the marketing prize OWL 2010 for the dynamic and
year the total turnover amounted to 798.9 million euros. This innovative development of the Tamaris brand. Progress on the
corresponds to a growth of more than 4 %. In the retail footwear building of the new logistics centre in Detmold, (with approx. 35
business the company expects a break-even for the financial year million euros the largest investment project in the company’s
2009; this would put Wortmann in a position to detach itself from history) is on schedule, despite the unusually hard winter. The
the development in the industry, as in the past years. opening is planned for this year November, when distribution starts
The export ratio is expected to be approximately 51 % (previous for the spring-summer season 2011.
year 53.9 %). Due - among other things - to the strong marketing The Tamaris system partnership continues to expand its market
campaign, e.g. the new TV advertisements, domestic business is share. Currently there are already 261 Tamaris retail-outlets in
excellent with two-digit growth rates. Countries like France, Belgium operation, of which 122 are single-brand stores and 139 shop-in-
and the Netherlands are further driving forces for growth. As shops. A further 21 stores and 21 shop-in-shops are under contract.
expected, trade was weak in the Baltic States, Hungary, Poland, and Thus Tamaris will have a total of 303 controlled retail outlets. In
Great Britain, due to the currency situation. The Russian market February the first two-day workshop for Tamaris partners was held
appears stable despite all apprehensions, and with the subsidiaries in the frame of the newly established Tamaris Academy. More than
established in 2008 Wortmann was even able to improve its 100 attendees received comprehensive information on all subjects
position here. Wortmann’s footwear is sold in over 70 countries related to the Tamaris brand. Owing to the extremely positive
worldwide. response, in future several workshops on diverse subjects will be
With a pair sales volume of almost 27 million pairs in the fashion carried out each year.
segment and approximately 40 million pairs in the standard At the moment there is not enough conclusive data available
segment, Wortmann Group is one of the largest footwear regarding the coming autumn-winter season 2010/2011 to make
manufacturers and distributors in Europe. reliable forecasts.
In Europe, the group’s business includes the brands Tamaris, It is expected that consumption will generally stagnate in 2010;
Marco Tozzi, Caprice, Jana and s.Oliver-shoes, and in Asia Novi this is also likely to apply to the footwear industry. The long winter,
Footwear Far East Ltd., Hong Kong/Singapore. Figures are not yet which is drawing to an end, has led to very good sales; however, the
available for Salamander, the planned joint venture with Ara. uncertainty in the market is still noticeable, due to the continuing
Wortmann is represented in twelve European locations and a further economic crisis. With ongoing large investments in consumer-
ten in the Far East. The Group currently employs 850 employees effective marketing activities the Wortmann Group wants to provide
worldwide (820 the previous year), of which 470 are in Europe. positive sales momentum for its brands.
China applies to the WTO
Boot sales power
Timberland in Europe
The Chinese government recently announced its decision to request consultations
with the World Trade Organization to challenge the process by which the European
Union decided last Dec to extend its anti-dumping measures on leather shoes from The strong boot trend that has been prevailing
China and Vietnam for 15 more months. It is the second time that China is in Europe in the last months has strongly
approaching the WTO to settle an anti-dumping dispute. benefited Timberland, which saw its sales rise
Taking note of this request, the European Footwear Alliance, which represents shoe by 17.1 % to $128.4 million in Europe for the last
importers, argued that the extension of the duties opened the door to retaliatory quarter. This is equivalent to an increase of 8.3
measures on EU exports to China. Last year, when the EU imposed antidumping on % in constant currencies. This European surge
imports of iron and steel fasteners from China, the latter’s government responded was also boosted by growing sales of women’s
with an appeal to the WTO and, last Dec, announced similar anti-dumping measures footwear in all categories, and the opening of
on carbon-steel fasteners from the EU. The Chinese government has been criticized nine retail stores since the fourth quarter of
for granting subsidies to the shoe sector that contrast with international rules on fair 2008. This strongly contributed to an increase
competition. Last December, the Chinese government decided to reduce certain of 23 % in European retail sales, but
economic incentives it had been using to help exporters during the financial crisis. comparable store sales also jumped by 10 % in
The incentives, which include cash awards, preferential loans, and subsidies for the region. Retail sales enjoyed the strongest
research and development, were condemned by the U.S. at the WTO for being against comparable sales rise in the Middle East, the
international rules and hurting American companies’ chances of exporting. UK and Spain.
www.shoeintelligence.com www.shoeintelligence.com
www.footweartoday.co.uk MARCH 2010
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FOOTWEAR TODAY
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