MILAN — Despite the challenge looming as a consequence of the coronavirus pandemic, Replay closed 2019 on an upbeat note, recording a 30 percent increase in earnings before interest, taxes, depreciation and amortization, which reached 28 million euros, or 11 percent of revenues.
Last year the Italian denim specialist brand, controlled by parent company Fashion Box SpA, posted a 10.3 percent increase in sales to 262.3 million euros, compared with 237.9 million euros in 2018.
The year 2019 “ended in line with our expectations, with significant improvements in all the parameters of the previous year,” said Matteo Sinigaglia, chief executive officer of Fashion Box. “We are preparing to face an extremely difficult 2020 due to the ongoing pandemic but we are however determined to implement the path already undertaken in terms of product innovation and to invest adequate resources to communicate our brand values to end customers. We are working to ensure we will be ready to go as soon as we are given the go-ahead.”
Exports last year accounted for 89 percent of sales and the brand is available in 50 countries globally.
Europe represented 73 percent of revenues, while the rest of the world, driven by the Middle East and Asia, accounted for 16 percent of sales.
All markets contributed to the growth. In particular, Southern Europe was up 8.1 percent; Asia grew 10.6 percent, and Eastern Europe jumped 36 percent. Sales in the Middle East climbed 49 percent. The company pointed to an “excellent performance of the Israeli market on all sales channels.”
The wholesale distribution network includes 4,000 stores and this channel grew 14.1 percent last year, or by 21.5 million euros. There are 105 single-brand stores and 125 corners and shop-in-shops. Retail and like-for-like sales were up 6.4 percent and the e-commerce channel was up 8 percent.
The company in 2019 opened stores in Croatia, Bosnia, Ukraine and Serbia. In India, Replay unveiled five new banners, of which three were in Delhi and two in Mumbai.
The Italian group, based in Asolo, in the province of Treviso, creates and distributes casual wear, accessories and footwear for men, women and children under the brands Replay, Replay & Sons and We Are Replay brands.
In October, Replay signed a four-season tie-up with the Paris Saint-Germain soccer team, becoming the Paris-based team’s official denim partner. A co-branded capsule collection will make its retail debut later this year. In addition, the collaboration encompasses a number of marketing initiatives to be promoted across both entities’ social media and digital platforms.
The collection is workwear-inspired and features two pairs of jeans — one in stretch denim, the other part of Replay’s Hyperflex Bio line, made with biological cotton and recycled polyester and available in three washes; three indigo shirts, three denim jackets and one boxy denim trench coat in a smoky blue hue. All the pieces feature the PSG logo in a new, pared-back design.
Set to drop in June and to be sold worldwide in PSG stores as well as Replay retail points, the collection was set to be photographed on the PSG players as part of the capsule’s campaign.
As reported, Replay has also inked a four-year agreement with New Zealand Rugby to become the official formalwear and denimwear partner of the national rugby teams All Blacks, All Blacks Sevens and Maori All Blacks, known also for the signature haka dance they perform ahead of each game.
As part of the deal, the company said it would develop a co-branded capsule collection, flanked by a range of marketing initiatives, including commercials and promotional activities to be fronted by Beauden Barrett, with whom Replay also sealed a deal for four years. The 28-year-old All Blacks fly-half has received the World Rugby Player of the Year accolade for two years in a row, in 2016 and 2017.