An “exceptional” action plan is being implemented to put Etam China back on track, including closing outlets, reorganising logistics to a single warehouse, cutting costs and accelerating the sale of off-season products.

China has been dragging back the group’s revenue despite the Etam Group’s growth in Europe in the second quarter. The French apparel and lingerie group says Europe accounts for three-quarters of the group’s overall business.

Etam, which also owns the 1.2.3 brand, had a 3.2 per cent decline in global revenue for its second quarter to the end of last month, and 5.3 per cent for the first half.

In China, its second-quarter revenue continued falling, by 28.7 per cent compared to 20.2 per cent for the same period last year. This led to a 25.6 per cent shortfall for the first six months (down 21.1 per cent last year).

Net sales totalled €48.4 million for the second quarter, including a negative currency effect of €1.3 million relating to the depreciation of the yuan against the Euro.

Over the half-year, net sales totalled €141.4 million, down 25.6 per cent, including a negative currency effect of €2.9 million.

Etam’s new management team in China closed 154 shops in the first six months. The reorganisation concerns the group’s ready-to-wear business, as its newest lingerie retail concept has actually spawned new openings in China.

For the second quarter, the group’s overall net sales amounted to €275.5 million (US$321 million), including a negative currency effect of €1.2 million, again through the yuan depreciation which also affected half-year sales of €600.1 million by €2.7 million.

At the end of last month, the Etam Group had 3767 points of sales, including 987 in Europe, 2442 in China and 338 international franchises.

During the first half the group opened 21 more points of sales, mainly abroad in its lingerie segment. The 1.2.3 store network was expanded by five outlets.

Meanwhile, Etam is busy this month with a takeover bid that seeks to delist the group.