Negative exchange rates
Not only did it manage higher margins, the company did also realize increased growth in its retail and wholesale activities. Nevertheless, company turnover dropped 1 % to 1.14 billion dollars (1 billion euro) because of exchange rates: if those unfavourable exchange rates were not present, turnover would have grown 7 %. Mainly its women’s collection performed well with double-digit growth.
Retail turnover grew 8 % in the third quarter, thanks to the store network expansion in Europe and Asia, which is why European turnover grew 2 %. American turnover grew 18 % and Asian turnover even grew an astonishing 50 %.
CEO Chip Bergh expects the like-for-like turnover to drop in the fourth quarter, because the quarter has a week less than the same quarter last year. He does have faith yearly turnover and gross profit will grow compared to last year.
