Etam Développement: Net Sales of €882.4 Million to 30 September 2014

Regulatory News:

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

I. BUSINESS TRENDS

In the third quarter of 2014, the Etam Group (Paris:TAM) posted sales of €284.0 million, including a negative currency impact of €0.2 million mainly related to the depreciation of the Yuan against the Euro. Sales were down 2.1 % compared with the third quarter of 2013. Like-for-like and at constant exchange rates, sales decreased by 2.1 %.

Over the first nine months of 2014, the Etam Group generated sales of €882.4 million, including a negative currency impact of €6.7 million mainly related to the depreciation of the Yuan against the Euro. Sales were down 0.5 % compared with the first nine month of 2013. Like-for-like and at constant exchange rates, sales were up 0.4 %.

1. In Europe

In the third quarter of 2014, sales came to €200.3 million, up 0.3 % and down 1.3 % on a like-for-like basis and at constant exchange rates.
Summer end-of-season sales were disappointing. The like-for-like sales growth of the autumn/winter season was slowed down by exceptionally mild weather conditions in September.

Over the first nine months of 2014, sales came to € 611.9 million, up 4.7 % or 2.8 % on a like-for-like basis and at constant exchange rates.
In France at the end of September year-to-date, the Group’s brands outperformed* the women’s clothing and textile market in terms of sales evolution.

* Source « Institut Français de la Mode » at end of September, 2014

2. In China

In the third quarter of 2014, sales were €83.7 million - including a negative currency impact of €0.2 million - down 7.4 % or 4.1% like-for-like and at constant exchange rates.

Over the first nine months of 2014, sales were €270.5 million - including a negative currency impact of €6.8 million - down 10.6 % or 5.5% like-for-like and at constant exchange rates.

In the third quarter of 2014, sales evolution like-for-like and at constant exchange rates was impacted by the negative performance of one of the brands.

The Group’s financial position and results at September 30, 2014 do not require specific comments.

II. NETWORK DEVELOPMENT

At 30 September 2014, the Etam Group had 4,141 stores, including 944 in Europe, 2,966 in China and 231 operated by international franchises.

Over the first half, the Group expanded its lingerie businesses in Europe and in export markets with 28 net openings. In China, as part of the strategy to streamline the network, the counters network was reduced by 213 non-performing units and the Group opened 8 standalone stores.

III. POST-CLOSING EVENTS

October 2nd, Etam launched an extended offer of cosmetics constituted of about 600 references, initially through about thirty stores in Europe, within its strategy to become a global brand.

The Etam Group is an international retailer of women’s ready-to-wear clothing, lingerie, cosmetics,
and accessories with 4,141 sales outlets at 30 September 2014

Next release:
2014 Net sales on 22 January 2015 after the market closes in Paris

Etam Développement: ISIN code: FR0000035743 / Reuters: TAM.PA / Bloomberg: TAM FP