After-tax profits at Danish footwear maker ECCO Sko A/S broke the $100 million mark on a 16.8% increase in sales to nearly $1 billion in 2007. The company said it sold 16.9 million pairs, up 14.5%.
“The 15,000 employees at our tanneries, shoe factories, centralised functions, distribution centres, wholesale and retail organisations can all take credit for our outstanding performance,” said ECCO CEO Dieter Kasprzak.
Operating profit (EBIT) was DKK 833m ($155.7mm), against DKK 759m ($141.9mm) the year before, corresponding to a 9.7% increase. Consolidated profit before tax rose by 6.5% to DKK 756m ($141.4mm) from DKK 709m ($132.6mm) in 2006. Profit after tax excluding minority interests was DKK 538m ($100.6mm), against DKK 489m ($91.4mm) the year before, corresponding to an increase of 9.8%.
As of Dec. 31, 2007, total assets stood at DKK 4,215m ($830.4mm), representing an increase of 15.5% or DKK 565m ($111.3mm).
Equity grew by 20% from DKK 1,730m ($306.2mm) at year-end 2006 to DKK 2,073m ($408.38) as of Dec. 31, 2007. The solvency ratio rose from 47.4% to 49.2%, supporting ECCOs overall goal of retaining the greatest possible financial independence.
Despite a challenging global economic setting, ECCO said its current order intake and sales indicated growth would continue, albeit at a subdued pace, in 2008. The company said it expected an operating margin on a level with 2007.
Ecco will invest significantly more in 2008 than last year, with an emphasis on concept sales, including selected owned shops and expansion of its franchise shop network, and infrastructure. In addition, the company said it would invest heavily in the expansion of our production capacity, particularly in a new tannery in
