Le Tanneur, a French brand specialized in the manufacturing of high-end leather goods accessories, has been boosting sales. Nevertheless, losses have been going up as well. The first six months of 2019 turned out to be discrepant for the brand, whose overall turnover reached 30.94 million euros, therefore increasing by +14.3% on annual basis. Yet, we need to analyse the company’s performance very closely.
Great news from contracting production
The brand’s business boost lies on a specific reason: Le Tanneur’s manufacturing activity, serving luxury fashion houses, has been increasing by 20.8%. In contrast, “their own” production has been rising “just” by +1.4%. Such trend is not that much surprising to French people. Aiming to tackle the increase in production (currently underway and expectedly in the months to come), the company decided to take on more staff.
Losses go up
Yet, despite higher revenues, profits have not gone up. On the contrary, compared to 2018 first half-year period, losses have increased. In fact, the company consolidated operating profit proved negative, -2.43 million euros. Consequently, such figures brought to a 2.29-million-euro net loss: in the same period of 2018, losses amounted to -2.18 million euros. In their official announcement, made public on October 30, Le Tanneur emphasized that in the second half-period of the year (the forthcoming one) the group’s financial performance traditionally gets better, mostly thanks to Christmas and New Year sales. The company announced they are going to launch new investments in marketing and electronic commerce. They are also planning to develop a global channel solution to enhance and boost sales on digital media. Aiming to take advantage of “a luxury market that is considerably expanding”.