Footwear company expecting greater growth this year
Shui-Mu, which operates 179 outlets nationwide, opened its first “new-style” store in Taipei’s Neihu District (內湖) in September last year, with the number of transactions at the outlet increasing by 15 percent compared with the level before renovation.
The company attributed the stronger contribution from the new-style store to its larger space and the company’s strategy to introduce more products beyond shoes, such as socks and bags, helping to diversify its product lineup.
“Following the success, the company plans to pick 10 more outlets across the nation this year to upgrade to new-style stores,” company chairman Joseph Lo (羅榮岳) told reporters on the sidelines of the firm’s annual year-end party in Taipei.
That would be part of Shui-Mu’s broader NT$98 million store renovation plan this year, Lo said, adding that throughout the year, the shoemaker will be revamping 148 of its outlets, Lo said.
Lo said enhancing e-commerce sales channels would also be a key focus.
Shui-Mu has launched trial operations of its online store and plans to officially launch the business on March 20, Lo said.
With the launch of the Web venture, revenue from online sales is expected to double this year from last year, Lo added.
Last year, revenue from online sales rose more than 50 percent annually to more than NT$35 million, company statistics showed.
Improving the e-commerce sales channel might help Shui-Mu’s development in China, Lo said.
Sales from online shopping is expected to account for two-thirds of the company’s revenue in China this year, he added.
The company posted NT$2.64 billion in consolidated sales last year, down 17.87 percent from 2013, after it shut down more than 20 stores over the past three years.
Net income totaled NT$88.49 million, or NT$1.45 per share, for the first three quarters of last year, compared with NT$44.1 million, or NT$0.73 per share, during the same period in 2013, statistics showed.