Regulatory News:

Etam Group (Paris:TAM):

?m   Q3-2011   Change   Change lfl 1   30/09/2011   Change   Change lfl 1
Group sales 269.4 -3.8%-10.7% 862.4 4.5%-2.0%
             
Europe 180.1 -7.2% -13.2% 562.3 1.5% -2.8%
China 89.3 3.9% -2.8% 300.1 10.4% 0.1%
             
Europe by country
France 2 155.0 -7.2% -14.3% 487.7 2.4% -2.8%
Other 25.1 -7.0% -6.6% 74.6 -3.7% -2.6%
Europe by brand
ETAM 3 145.7 -5.1% -12.7% 446.3 4.1% -1.2%
1.2.3 34.4 -15.1% -14.9% 116.0 -7.3% -7.8%

(1) like- for-like and at constant exchange rates

(2) including export sales

(3) including Undiz

I.BUSINESS TRENDS

In the third quarter of 2011, the Etam Group posted sales of ?269.4 million, including a negative currency impact of ?3.6 million mainly related to the depreciation of the yuan against the euro. Sales decreased by -3.8% compared with the third quarter of 2010 and by 10.7% like-for-like and at constant exchange rates.

Over the first nine month of 2011, the Etam Group generated sales of ?862.4 million, including a negative currency impact of ?2.5 million mainly related to the depreciation of the yuan against the euro. Sales rose by 4.5% compared with the first nine months of 2010. Like-for-like and at constant exchange rates, sales were down 2.0 %.

1.Europe

In the third quarter of 2011, sales came to ?180.1 million, down 7.2%. The Group's performance was severely impacted by the first week of the end-of-season sales in France being brought forward to 22 June in 2011 versus 30 June in 2010, which accounts to a significant extent for the fall of 13.2% on a like-for-like basis and at constant exchange rates compared with the third quarter of 2010.

Over the first nine month of 2011, sales were up 1.5% to ?562.3 million, and decreased by 2.8% on a like-for-like basis and at constant exchange rates compared with the first nine months of 2010.

After disappointing end-of-season sales, sustained by a higher level of markdowns than in 2010, the autumn/winter season began under unfavourable economic conditions, accentuated by an exceptionally mild weather inadequate with winter ready-to-wear collections. Against this backdrop, the Group is paying considerable attention to the level of its inventories and purchase commitments.

2.China

In the third quarter of 2011, sales came to ?89.3 million, including a negative currency impact of ?3.6 million, an increase of 3.9%. Like-for-like and at constant exchange rates, sales were down 2.8% compared with the third quarter of 2010. This decline relates to the Golden Week Holiday falling in October in 2011 as opposed to September in 2010, as well as a more focused participation in department store promotional campaigns.

Over the first nine month of 2011, sales rose by 10.4% to ?300.1 million, including a negative currency impact of ?2.5 million. Like-for-like and at constant exchange rates, sales were up 0.1%.

II.NETWORK DEVELOPMENT

At 30 September 2011, the Etam Group has 4,466 sales outlets, including 992 in Europe, 3,297 in China and 177 operated by international franchises.

  • In Europe and exports, the Group is continuing to expand the store network for its lingerie businesses.
  • In China, the Group opened 253 stores on a net basis during the first nine month of 2011 (including 108 during the third quarter) vs 223 net openings during the same period in 2010.

III.MARKET AND OUTLOOK

Although negative, the Etam Group's sales evolution on Winter 2011 collections in France (August-September) outperformed the French women's clothing market in specialist chains, which sustained a sharp fall throughout the third quarter.

The Etam Group has geared itself up to deal with uncertain consumption in Europe in a challenging economic climate and to benefit from China's growth. It is taking the commercial and management steps needed to uphold all its commitments.

The Etam Group is an international retailer of women's ready-to-wear clothing, lingerie

and accessories with 4,466 sales outlets at 30 September 2011.

Next release:

Fourth quarter & 2011 annual sales on 2012, January 26 after the market closes in Paris

Information for analysts and investors: www.etamdeveloppement.fr / Tel.: 01 55 90 72 79

Etam Développement: ISIN code: FR0000035743 / Reuters: TAM.PA / Bloomberg: TAM FP

Etam Développement ?12,169,313 - R.C.S. PARIS 308 382 035

Registered office: 67/73, rue de Rivoli, 75001 Paris - France

Etam Group