PARIS — Longchamp posted consolidated turnover of 495 million euros, or $658 million, in 2014, up 8 percent year-on-year, in line with its guidance.
“We continue to see the fruit of our long-term strategy of opening wholly owned, high-quality stores across an increasingly strong global retail base,” said Jean Cassegrain, chief executive officer, of the independent, family-run firm.
While Europe accounted for 60 percent of sales, the French leather goods company plans to continue investing in new markets to shield itself from the impact of economic shocks. In 2014, it launched a subsidiary in Russia and this year will see it entering Austria, Canada, Cambodia, Peru and Paraguay.
“[This year] is set to be challenging with an uncertain economic and political backdrop. However, we will maintain our agile approach, working with diversified product ranges and different geographies. This sense of optimistic movement has driven our growth in the past and is key to our stability in the future,” said Cassegrain.
Longchamp will unveil stores in Florence, Vienna, Macau, Toronto and two cities in China this year. It also plans to integrate its existing five stores in Singapore into its network of directly operated units and open subsidiaries in Canada, Singapore, Austria and Macau.
In 2014, the company invested 22 million euros, or $29 million, in a logistics center in Segré and launched a new SAP management system, which will roll out across the business over the next two years. It also opened new training workshops in western France.
“These are vital elements in meeting the demands of our growing global marketplace, allowing us to increase our export levels and turn orders around in the shortest possible times,” said Cassegrain.
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