Etam Développement : Net Sales of €1,220.4 Million at 31 December 2014

Regulatory News :

Etam Développement (Paris:TAM) :

¹ like-for-like and at constant exchange rates including internet
² including export sales
³ including Undiz

I. BUSINESS TRENDS

In the fourth quarter of 2014, the Etam Group generated net sales of €338.0 million, including a positive currency effect of €8.5 million relating primarily to the appreciation of the yuan against the euro. This represents an increase of 2.9% on a real basis or 1.6% like-for-like and at constant exchange rates relative to the fourth quarter of 2013.

During the full year to 31 December 2014, the Etam Group generated net sales of €1,220.4 million, including a positive currency effect of €1.8 million relating primarily to the appreciation of the yuan against the euro. This represents an increase of 0.4% on a real basis or 0.7% like-for-like and at constant exchange rates relative to 2013.

1. In Europe

In the fourth quarter of 2014, net sales totalled €226.1 million, up 3.1% or 1.5% like-for-like and at constant exchange rates.

During the full year to 31 December 2014, sales came to €838.0 million up 4.3% or 2.5% like-for-like and at constant exchange rates.

In 2014 the Group achieved satisfactory global sales performance, as a result of the strengthening of its brands image, the transformation of its stores’ network and the roll-out of its multi channel strategy. In France, the Group’s brands outperformed the clothing and textile market* in terms of sales.

In the fourth quarter of 2014, sales growth like-for-like and at constant exchange rate was maintained despite unfavourable weather conditions and a poor Winter 14 season at 1.2.3.

2. In China

In the fourth quarter of 2014, net sales totalled €111.9 million, up 2.6 %, including a positive currency effect of €8.5 million relating primarily to the appreciation of the yuan against the euro. Like-for-like and at constant exchange rates, net sales increased by 1.9%.

During the full year to 31 December 2014, net sales totalled €382.4 million, down 7.1%, including a positive currency effect of €1.7 million relating primarily to the appreciation of the yuan against the euro. Like-for-like and at constant exchange rates, net sales fell by 3.6%.

The decline in revenues in 2014 was mainly due to the closure of non-profitable corners in department stores for a net number of 236 sales points. Like-for-like and at constant exchange rates, sales downturn for the full year results from a drop in the first quarter (-9.4%) and nearly stable sales in the last nine months.

II. NETWORK DEVELOPMENT

At 31 December 2014, the Etam Group had 4,122 points of sales, including 943 in Europe, 2,935 in China and 244 international franchises.

In 2014 the Group streamlined and developed its store network in its lingerie activities in France and abroad with new footprint of the Etam brand in Latin America and of the Undiz brand in Belgium, Morocco and in overseas French territories.

III. OTHER INFORMATION

On December 5, 2014, the Group issued a new variable rate private placement of € 50.0 million maturing June 5, 2019 and repaid the variable part of the previous one dated July 2011, namely € 31.5 million, which maturity date was July 2016 and whose borrowing conditions were less attractive.

The eight Etam Lingerie fashion show, a highlight of the Paris fashion scene, will take place on 6 March 2015 and will open the Paris Fashion Week.

The Etam Group is an international retailer of women’s lingerie, beauty, ready-to-wear clothing and accessories with 4,122 sales points at 31 December 2014

Next releases:
2014 Annual Results & 2015 Q1 net sale, on 16 April 2015 after the market closes in Paris

Information for analysts and investors: www.etamdeveloppement.fr / Tel.: 01 55 90 72 79
Etam Développement: ISIN code: FR0000035743 / Reuters: TAM.PA / Bloomberg: TAM FP

Etam Développement €10 961 739 - R.C.S. PARIS 308 382 035
Registered office: 78, rue de Rivoli, 75004 Paris – France

* Source Institut Français de la Mode at the end of December 2014