Deichmann, having received 132 million in aid, buys a supplier

Deichmann, having received 132 million in aid, buys a supplier

Deichmann benefitted from 132 million in government aid during 2021, as a result of the pandemic. German media discussed the matter after having reviewed the 2021 financial statement of the footwear company. Deichmann sold 160.5 million pairs of shoes in 2021 (+7% on 2020) for an average price of 31.40 euro (+8.8% on 2020), and the company closed the year with a profit. The company headquartered in Essen also recently bought 51% of third-party manufacturer Pirmansens’ Supremo Shoes + Boots.

The aid to Deichmann

Deichmann benefitted from 132 million euro in aid during 2021. Westdeutsche Allgemeine Zeitung noted it, when it examined the company’s financials for 2021. There is “aid” for 52 million euro, additional state benefits tied to the EU for 16.8 million, and another 37.5 million euro of salaries’ reduction thanks to the support received for temporary layoffs. Moreover, Deichmann received 14.5 million euro to cover rent on various buildings.

Germany with a loss

German conglomerate closed 2021 with 316.3 million euro of profits (from a revenue of 6.2 billion euro), compared to the net loss of 73.9 million euro recorded the previous year. This national newspaper though, points out how the result was also achieved thanks to the government’s aid, which allowed Deichmann to have a better year than expected. The same forecasts had shown a worsening of the company’s financials compared to 2020.

The acquisition of Supremo

During 2021, Deichmann had forecasted investments for 326.7 million euro for 2022. The amount was to be used to increase the number of retail points (specifically Poland and the USA), and to develop e-commerce. The German group acquired 51% of footwear manufacturer Supremo Shoes + Boots in Pirmasens via its controlled subsidiary, Fasbra. Together with Hong Kong’s Supremo Oriental, says Shoez, the company sells over 8.5 million pairs of shoes for women, men and children of the entry-level and medium segment.

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