Ecco’s net revenues drop by 5%

Last year, in the wake of unsatisfactory results, shareholders had to inject €48 million to reinforce the balance sheet of Ecco Sko A/S, the parent company of the Danish footwear, accessories and leather giant. The cash call “supported the solidity ratio” of the parent company “despite the unsatisfactory results of the Ecco Group in 2024,” Ecco said in its annual report.

In 2024, Ecco posted a net loss of €37.59 million, compared with a net profit of €47.04 million the previous year, as net revenues dropped by 5 percent to €1.487 billion from €1.571 billion. At constant currency rates, the top line fell by 3 percent.

During the year, footwear sales fell to €1.320 billion for the group from €1.409 billion in 2023, while accessory sales rose to €61.99 million from €56.93 million and the leather business grew to €86.63 million from €70.92 million.

Pre-tax earnings were €5.11 million, against €90.0 million in 2023. During the year, cash flow from operating activities fell to €55.23 million from €127.54 million.

The Danish group’s key ratios worsened, with the operating margin narrowing to 2.0 percent in 2024 from 7.3 percent in 2023, the pre-tax profit ratio decreasing to 0.3 percent from 5.7 percent, return on assets dwindling to 0.3 percent from 5.9 percent, and return on equity being a negative 9.8 percent compared with a positive 5.5 percent the previous year.

Ecco cut its net investments by 11 percent to €38.33 million because of “tight capital allocation towards high return markets and strategic enabling initiatives.” It pointed out that store openings were limited to key focus markets offering high returns, while openings in the Americas and Europe were on hold in 2024. 

“The financial year 2024 did not materialize as planned as both sales and profitability were far from satisfactory. The result for the year is significantly impacted by non-recurring costs from initiatives taken to strengthen the core business of Ecco,” according to the annual report.

Ecco’s net working capital increased by 2 percent compared with 2023, mainly because of higher footwear inventory. “Inventory was increased to ensure flexibility and readiness to better meet commercial opportunities,” the group said.

Because of “the unsatisfactory result of the year and the aim to maintain a strong solvency,” the group had to carry out a €48 million capital injection in 2024. The solvency ratio was 29.9 percent at the end of 2024, versus 30.5 percent the previous year.

In 2025, Ecco expects its profitability to increase “significantly” and result in a pre-tax profit of €50 to €75 million, stemming from a “moderate” sales growth to €1.50 to €1.55 billion combined with a “trimmed cost base.” Ecco anticipates the solvency ratio to improve to 30 to 31 percent.

Ecco has been reshuffling its top management lately.

At the end of 2024, the group’s CEO, Panos Mytaros, stepped down and was replaced by the Chief Commercial Officer, Thomas Gøgsig. 

In March 2025, Ecco appointed Neal Taylor as Chief Executive Officer for the Americas. He previously served as Senior Vice President Global Commercial at Hanesbrands. 

“I am so excited and honored to announce that I am starting a new role as CEO Americas for Ecco. It is a privilege to be part of a company with such a rich history of craftsmanship and creating high-quality products. I look forward to partnering with the teams across the Americas, in Denmark and around the world to unlock the potential of the brand,” Taylor posted on LinkedIn.

Taylor’s arrival comes after a thorough overhaul of the group’s top management in the Americas. Last year, Zeynep Gorman was hired as E-Commerce Director for the Americas in March and Seth Heckman joined as Chief Financial Officer of the business area in April. In June 2024, Dan Leonardi joined as Head of Wholesale for the Americas and in February 2025 was promoted to Chief Sales Officer for the region.

The annual report shows that Ecco’s sales in the Americas fell by about 20 percent last year on a reported basis.

Combined revenues from the shoes and accessories categories in the Americas totalled €201.00 million in 2024, down from €250.98 million the previous year. This compares with sales of €630.89 million in Europe, the Middle East and Africa, down from €654.66 million in 2023. Meanwhile, revenues in Greater China rose to €418.43 million in 2024 from €414.52 million in 2023, and those in the rest of Asia-Pacific dipped to €131.88 million from €145.99 million.