Etam Développement: Net Sales of € 924.3 Million at 30 September 2016

Regulatory News:

Etam Développement (Paris:TAM):

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

I. BUSINESS TRENDS

In the third quarter of 2016, the Group net sales amounted to €290.5 million, including a negative currency effect of €4.9 million mainly due to the depreciation of the Yuan against Euro. Net sales decreased by 4.4 % compared to the third quarter of 2015, and by 6.0 % like-for-like and at constant exchange rates.

Over the first nine months of 2016, the Group net sales amounted to €924.3 million, including a negative currency effect of €14.3 million mainly due to the depreciation of the Yuan against Euro. Net sales decreased by 2.6% compared with the first nine months of 2015, and by 3.2% like-for-like and at constant exchange rates.

1. In Europe

In the third quarter of 2016, net sales were €215.4 million, up 0.4%. Like-for-like and at constant exchange rates, net sales decreased by 3.3%.

Over the first nine months of 2016, net sales came to €659.2 million, rising by 2.6%. Like-for-like and at constant exchange rates, net sales decreased by 1.1%.

Since the beginning of the year the decline in net sales like-for-like and at constant exchange rates is mainly due to the ready-to-wear business from Etam and 1.2.3, in sharply declining markets*. The growth in turnover and margin in Europe is due to the development of the lingerie businesses in Europe, e-commerce and export.

*Source Institut Français de la Mode and Eurostat

2. In China

In the third quarter of 2016, net sales were €75.1 million, down 15.8% including a negative currency effect of €4.8 million due to the depreciation of the Yuan against Euro. Like-for-like and at constant exchange rates, net sales were down by 15.5%.

Over the first nine months of 2016, net sales amounted to €265.1 million, up 13.5%, impacted by a negative currency effect of €13.9 million due to the depreciation of the Yuan against Euro. Like-for-like and at constant exchange rates, net sales decreased by 9.3%. These results can be primarily explained by the sharp decline in traffic and sales in, main distribution network of the Group.

In front of an accelerating drop in consumption in department stores since the beginning of the year, the Group continues to implement its action plan in three directions: the repositioning of its brands, the evolution of its branch network and the development of E&Joy and the lingerie business in shopping malls.

The Group’s financial position and results at September 30, 2016 do not require specific comments.

II. NETWORK DEVELOPMENT

At 30 September 2016, the Group had 3,967 points of sales, of which 976 in Europe, 2,701 in China and 290 in international franchise.

Since January 1, 2016 the Group opened 45 additional stores in its lingerie activities Etam and Undiz and in ready-to-wear with 1.2.3, in France and internationally. In China, 176 units were closed during this period.

The Etam Group is an international retailer of women’s lingerie, beauty, ready-to-wear clothing
and accessories with 3,967 points of sales at 30 September 2016

Next releases:
Q4 2016 and 2016 net sales, on 26 January 2017 after the market close in Paris

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

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