France: what a nightmarish 2016 for Le Tanneur! At this point…

Very tough times for Le Tanneur, the French leather company, whose revenues heavily fell in 2016: -5,2% in profits, compared to 2015, with a 53,8 million euros overall turnover. Exportwise, the company lost profits (-36, 7%), both in their own brands (Le Tanneur and Soco) and in their license manufacturing for luxury brands (which account for half of their turnover). With regard to the own brands of the company, which is held by Qatar Luxury Group, sales have decreased (-3, 4%). Over the past year the company closed 4 shops in France: that was a serious blow for their distribution network (49 franchise retail stores, 29 managed independently). How come? Wrong strategies, they say in France. In a press release Le Tanneur have pointed out that putting into production a few small leather goods, at the end of 2015, “has hindered  productivity and performances whilst taking over skills”. Aiming to offset losses, they have been planning, for 2017, to focus again on exports, searching for new channels especially in Asia, as well as on development of their own brands. On top of that, they want to “improve their productivity and performances, especially through a careful flow control”, as they will boost Soco. Yet the current rumor is that they might even take a sale deal into consideration. Analogous rumors were going round last year as well.


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