Cautious buying among German retailers squeezed Chiemsee’s sales by about 5 percent to €24.2 million for the fiscal year ended in November 2007. Some German accounts slashed their pre-orders by as much as 30 percent during the second half, reducing Chiemsee’s sales by about 10 percent in its home market and stimulating the company to push ahead with its international expansion.
After a deal with Green Point in Malaysia to open stores in several Southeast Asian countries last year, Chiemsee signed another such agreement for China and South Korea this year. The rights were attributed to Douglas Sheridan, who previously ran a Diadora license in the region. The contract with Green Point has already led to the opening of five stores in Malaysia, with another one to follow in Singapore later this year.
At the same time, the brand is steadily building sales in several European countries, from Switzerland to the Benelux and France. After setting up two mono-brand stores in Germany last year, Chiemsee opened a store of 300 square meters in Innsbruck with Schöffel, which shares the same distributor in Austria. All in all, German sales have been reduced to about 55 percent of Chiemsee’s sales, while international sales have grown to a share of 45 percent.
In spite of the small decline in Chiemsee’s own sales, the company’s turnover for the year remained flat at €34 million, due to heightened revenues from licenses. They rose to about €9.8 million for the last fiscal year, up from €8.5 million, and a new license is kicking in this year for jewelry and watches.
