From Denmark, Ecco’s 2020: loses 20% of turnover, but does not give up on investments. Distribution, digitalisation, product innovation and sustainability are the sectors in which Ecco continues to allocate resources. “2020’s results reflect the unprecedented impact of the pandemic. However – says Steen Borgholm, Ecco’s CEO -, our business model and our organisation have once again proved solid. They have enabled us to act quickly in times of change”.
Doesn’t give up on investments
In 2020, Ecco recorded a turnover of 1.1 billion euros, down 19.7% on an annual basis. Pre-tax profit fell by 77% to 44.7 million euros. In the note, the company underlines the strong growth in online sales (+34%) and a reformulation of the product offer towards a more versatile line, such as sneakers and athleisure. Ecco, which has over 21,000 employees worldwide, invests heavily in its distribution. During the year, for example, it acquires business in Russia and a large number of stores in the Middle East and the Netherlands. Other major investments come in digital platforms, advanced marketing capabilities and infrastructures that enable product innovation. Overall, investments reached a record level of 195 million euros.
The Danish group also continues to invest in its sustainability path. In 2030, Ecco plans to rely completely on renewable sources, the use only bio-based chemicals for leather, as well as closed-cycle water systems. “This would be a real step forward in our sector” emphasises Ecco in the press release.