The Dutch Etam group has apparently been losing money these past several years, according reports that have surfaced during a court case between an employee and the Etam group.
Loss in the millions
The latest financial figures the Etam Group has released date back to the fiscal year 2010/2011, when it had a 3.3 million euro loss on a 238 million euro turnover. The fashion group (and Miss Etam's and Promiss' parent company) has apparently been unable to revert that trend in the following years according to a court case report newspaper Het Financieele Dagblad was able to browse.
Apparently, the Etam Group took a 2.8 million euro loss in 2011/2012, extraordinary income not included, and the result for the 2012/2013 fiscal year also was several million euros below zero.
The Etam Group has been in a huge restructuring since last year, with 140 people already shown the door. The company has claimed it was inevitable. "Web shops and the economic crisis have pressurized the results and the net worth of the entire Etam Group. If we did not restructure, we would have had to close down the under-performing stores", the report stated.
It has also invested quite heavily into the online branch, which has made the company the fastest growing web shop of last year, according to market research firm GfK. CEO John van den Ent said late last year he wanted to expand abroad with both physical and online stores. On top of that, a new line of smaller stores or click&collect points is being considered.