Le Tanneur: Qatar Luxury Group could sell its stake
The Qatar Luxury Group may be about to sell its interest in French leather goods manufacturer Le Tanneur. The news was reported in French financial magazine Les Echos on 22nd March, citing corroboratory sources. The magazine explained that the Qatari company, which became a shareholder in Le Tanneur & Co. in 2011 and currently owns 85.6% of the stock, may be willing to sell its stake or to review its strategy, with new management and a fresh injection of capital.
As for Le Tanneur, the company stated it has had no indication of any sale or managerial change whatsoever, pointing out how such rumours are a frequent occurrence. It also pointed out that work on the evolution of the Le Tanneur brand started just recently. "Le Tanneur's brand has more of a fashion orientation, and we wish to move towards products featuring a greater functionality," stated the director of communications for the Le Tanneur & Co. group. Such changes ought to be visible as of the winter 2017 collections.
However, although a strategic evaluation of the brand's direction is under way, the group's results still remain weak, even if there seems to be some slight improvement. Thus, in the first six months of 2015, closed at the end of June, Le Tanneur & Co. recorded a loss of €1.35 million, compared to one of €2.72 million a year earlier.
For the whole of 2015, the group generated a revenue of €56.7 million, equivalent to a 1.4 % rise. Yet it was the group's manufacturing activity for luxury labels which generated growth, since it rose by 7.9% to €31.3 million. The own brands' segment (Soco, Le Tanneur, etc.) on the other hand recorded a 2.9% decline, to €25.4 million. Yet, revenue for the Le Tanneur brand taken by itself grew by 2%. The brand however remains very much France-centred, and suffered from the country's difficult economic situation, as well as from competition from several luxury leather goods labels.
The Les Echos magazine also mentioned an internal option, that of Philippe Spruch who, through his company Diversita owns 9.8% of Le Tanneur & Co.. Spruch has also invested in French label Guy Degrenne, after recently acquiring a stake in socks specialist Kindy.
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