leather news from leather industry world wide

Borge Garveri close down

Norway

Published:  07 June, 2010 

Norweigen tannery Borge Garveri have closed down after 120 years of leather making. The bovine tannery located in Karvik, Lonevag were specialists in bridle, leathergoods and high-end bovine leathers. The family owned busines are now in the process of selling the tannery assetts including all the tanning machines including drums which have a capacity of 20 tons of bovine hides per day. The announcement was officially made on June 1 by former managing director, Johannes Borge.

Improved results for Natuzzi

Italy

Published:  09 June, 2010

Total net sales for Italy based leather furniture group, Natuzzi for the first quarter 2010 were €126.4 million with an improvement of 13.6%. Upholstery net sales were €111.3 million with an increase of 14.9% compared to the same period of 2009. The contribution by geographic area was the following: Europe (excluding Italy) 42.4%, Americas 32.3%, Italy 14.1% and rest of the world 11.2%.

Natuzzi said in statement released on May 28 that the significant improvement of the industrial margin is due to a better product-mix sold, and to a constant cost control activity, as well as to a positive euro/dollars exchange rate that affected positively the cost of raw material purchases.

Transportation costs were negatively influenced by a significant increase of the freight fares recorded 

in some transportation routes since January 2010. 

As a result of these figures, the Natuzzi had an operating income of €0.5 million versus an operating loss of €16.6 million

 in the first quarter of 2009, an improvement with respect to the same period last year.

Net group result shows a reduced loss of €1.3 million, with respect to a loss of €10.4 million recorded in the same period 

of 2009, mainly due to some production efficiency savings. 

The net financial position as of March 31, 2010 remains positive for €54.9 million compared to a decrease in December 31, 2009 results.

Pasquale Natuzzi, chairman and chief executive officer of Natuzzi, commented: ‘In the first quarter of 2010 we finally recorded 

a net sales improvement. However, the economic crisis and the worsening market conditions are not yet over and the group

 order flows for the first months of 2010 with respect to the last months of 2009 confirm a slow down as compared to the 

 previous positive trend, even if with diversified trends among the various brands and geographic areas. We promptly reacted, 

from a price point of view, introducing a Natuzzi brand new ‘entry price’ product range that could stimulate consumer demand

 coherently with the brand positioning. The Italsofa and Editions brands are confirming the success achieved during the Colone,

 Milan and High Point (USA) fairs and the enormous potential of this new offer .

Along with these commercial initiatives, we have in progress an internal restructuring plan that aims at simplifying the management 

of company activities, at achieving further cost reductions and innovation in order to improve the quality of products and 

customer service.

We are confident that the strength of our brands and business model, based on integration between production and distribution, could help us face the adverse market situation. Furthermore, thanks to the perseverance, enthusiasm, ethic values, and commitment of all people working within our group, we will be able to achieve our goals in terms of service, quality, competitiveness and profitability.’

                Office awarded UK footwear buyer of the year

United Kingdom

Published:  07 June, 2010

The Draper’s Footwear Awards 2010 were presented June 3 at a gala dinner at the Grosvenor House hotel in London. The awards are among the most prestigious prizes presented by the British footwear industry. The awards honour the achievements of the most innovative and passionate footwear retailers, brands and young designers from the UK and Ireland. The category ‘Footwear Buyer of the Year’ was sponsored by GDS – International Event for Shoes, the German footwear show and was awarded to Helen Povey of the Office retail chain by GDS director Kirstin Deutelmoser in front of 400 guests.

The jury’s verdict for awarding this prize was because Povey worked tirelessly to stamp her authority on her segment of the market.
Also nominated were Sheila Barry of Donaghys from Northern Ireland, Nichola Carrol and Oliver Tezcan of Asos, Neil Steptoe of Kurt Geiger and Michelle Vaughan of Poste Mistress and Office.
Kirstin Deutelmoser said: ‘All finalists stood out with their strong commitment and special performance. In so doing they helped the sector survive difficult times. I especially congratulate the winner Helen Povey – who also regularly attends GDS in her capacity as a buyer – on her great success.’
The next GDS / Global Shoes trade fair will be held September 10-12, 2010.