The Polish footwear company CCC posted sales of 2 billion Zloty (€446.0m-$541.3m), largely unchanged from the previous year, in the fourth quarter, which covered four months including January. Sales were affected by Covid-19 lockdowns, but e-commerce grew by 84 percent year-on-year and generated 55 percent of quarterly sales. In January alone, over 78 percent of its sales were generated through e-commerce.
At the end of January, the company only had 420 stores trading. CCC is present in 30 countries. In 22 of them it operates 1,060 brick-and-mortar stores, with a combined area of 685,000 square meters, and has an online presence in 17 countries. It operates a total of 70 online platforms across Europe.
eobuwie led CCC’s e-commerce business, with fourth-quarter sales at PLN 919 million (€204.9m-$248.7m), up by 69 percent year-on-year, and the Ebitda margin widening by 2.7 percentage points to 8.9 percent. The company’s other e-commerce platforms (ccc.eu, DeeZee, Gino Rossi) also experienced rapid growth, accounting for 16 percent of online sales in the fourth quarter, compared with 9 percent a year earlier. Each platform recorded a triple-digit growth in sales, with ccc.eu surging by 353 percent.
CCC noted that its clothing business “is gaining traction” with Modivo’s revenues up by 137 percent to PLN 268 million (€59.8m-$72.5m).
CCC’s gross margin fell by 1.5 percentage points year-over-year in the quarter, resulting from sales campaigns held prior to the closure of stores and ensuing promotional activities to restore in-store traffic after lockdowns. The online business, however, managed to increase its gross margin by 2.5 percentage points during the period.
The company posted a 14 percent increase in costs due to the expansion of the e-commerce business, but outlays grew less than revenues.
In the full year, which spreads over 13 months, revenues totaled PLN 5.6 billion (€1.25bn-$1.52bn), down by 3 percent from 2019. Online sales rose by 71 percent and represented 48 percent of the total.
CCC said that its new spring/summer collection “puts even greater emphasis” on fashion trends. The company will continue to invest in capsule collections and plans to launch models designed by young artists from the Academy of Fine Arts in Lodz, Poland.