Growth for Ecco: continued but slowing
The Danish shoe company Ecco has celebrated another record-breaking year as net revenue increased by 4.4 percent on 2012.
But the rate of growth represents a deceleration seen in the context of the astronomical advances in recent years (13.7 percent in 2012 and 16 percent in 2011).
Børsen reports that the development in the company’s fortunes can be explained by changes in fashion. Brands like Ecco, which produces primarily black and brown leather shoes, are facing new competition.
“There are more and more brands like Nike, Puma and Asics from the world of sports that now have a subcategory of product called lifestyle shoes,” Kasprzak told the newspaper.
High hopes for high heels
The slowdown in growth requires focus on selling higher value products, according to Ecco’s press release accompanying the annual report.
Børsen also notes that the brand is widening its product range to include, for example, ladies high heel shoes with an emphasis on comfort.
Despite the falloff in growth, the CEO was happy with the company’s results.
“It’s a very pleasing performance," said Dieter Kasprzak. "We have been successful in reorganising our production footprint whilst growing our business and profits."