Strong performance of Losan and Zippy boosts Sonae's fashion sales

Sonae, Portugal's largest retail group and owner of fashion brands Sport Zone, Zippy, MO, Berg and Losan and reference investor in Salsa through its subsidiary Sports and Fashion, has registered an increase in turnover of 14, 6 percent.

The Portuguese company stressed that the success of its textile division during the first half of this year is largely due to the inclusion of Losan and the positive evolution of Zippy in Portugal.

Sales per square meter (excluding wholesale business, particularly Losan) grew substantially during this period, benefiting from significant improvements in children's fashion brand Zippy as well as from the positive developments in its chain Sport Zone Sport.

"This development took place in a context of unfavourable weather conditions, which influenced the Spring-Summer '16 collection, generally in Iberia," highlights the company in a statement.

Sonae fulfills “strategic goal” of buying half of Salsa´s capital

It is worth recalling that in the second quarter of fiscal 2016, Sonae SR completed the acquisition of 50 percent of the capital of Salsa, "thus starting a promising joint venture with an internationally recognised specialist in jeanswear."

Moreover, in the period just ended, Zippy continued its international expansion, reaching Cyprus and currently operates in 40 countries through its own stores, franchises and wholesale channel.

In total, the Portuguese conglomerate Sonae SGPS won 77 million euros in the first half of the year, this is a 20.9 percent less than the same period last year. Market sources consulted by FashionUnited remind that the group has been immersed in several substantial investments in recent months.

"Despite the large investment made during the semester, debt continued to decline in comparative terms, so we maintain an adequate level of financial strength, coupled with the growing excellence of our teams, what allows us to face with optimism the challenges we have set ourselves for"emphasises in this regard the CEO of the group, Ângelo Paupério.

The results, however, exceeded the forecast by most analysts, stresses Investing.com.

Sonae SGPS stock closed at the rise on Friday, gaining 0.45 percent at the close of the main index of Lisbon, to EUR 0.68 per share.

Imagen:Zippy.es