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LOTTO LOOKING UP
Despite restricted growth as a result of the recession in the Italian market, Lotto Sport Italia S.p.A. has closed 2005 with total sales of 257 million euro, due to export markets. The end result for the past financial year is therefore in line with the 2004 results, confirms the Company is speeding up its internationalization. The launch of Zhero and the start of the high-end leisure footwear and apparel collection Lotto Leggenda reflected Lotto’s investment in research and development. The company has also been busy expanding its brand presence abroad, with the joint-venture in China and new distribution agreements in Taiwan, Indonesia, Malaysia, Singapore, Vietnam and. The set up of the joint-venture in the USA is part of a project aimed at relaunching the brand in the world of American sportswear.
Italy accounted for for 26% of total sales in 2005 with maintenance of the market position in Germany and Spain coinciding with satisfactory growth in Austria (+3%) and France (+5%), and significant expansion in Belgium and Holland which achieved +44% and +26% respectively. Results were also very good in Greece (+29%) and Turkey (+62%). The countries of Eastern Europe have also been strengthened, with a number of markets exhibiting double digit growth (Romania, Slovakia and and Slovenia). Europe now accounts for 67% of the total sales turnover, Africa – Middle East for 5%, the Americas 13% and lastly Asia and Oceania 15%. In India Lotto has generated a turnover of more than €3 million in just twelve months and a 26% increase in turnover in Japan. on the previous period.
With footwear representing (44%), apparel (51%) and accessories (5%) the brand’s product focus remains essentially unchanged, but the leisure segment now represents at least 50% of the total. Good results (+8%) have been achieved for sales of Lotto brand non-core products (school and stationery, underwear and cosmetics) which have reached 6.5 million euro. The cosmetics line has been particularly successful at the international level.
In 2006, the Company aims to achieve the threshold value of €270 million and in the second half of the year, further employee additions are foreseen in order to strengthen the important American project.
