Deichmann-Sko Aps

The general footwear market in Denmark declined by 6% in 2023 vs 2022, which also impacted Deichmann negatively in terms of not achieving the expected sales targets for the full year. Inflation decreased to a relatively low level in 2023, but the customers generally held back on consumer spending, which also affected the fashion retail business.

The company had generally increased costs on purchase prices of shoes, rent, wages etc. and in the autumn, there were general challenges in stock capacity to get the right shoes to the stores in due time. This meant that 4th quarter did not turn out as expected and the company lost momentum in shoe sales compared to competitors due to low inventory levels when the weather turned cold and snowy.

The company opened 1 new store in 2023 and made investments in renovations and relocation of existing stores to better locations to secure its market position in the future.
Overall, this means that the company ends with a loss of 8,55 M DKK for 2023, which the management does not considers satisfactory. However, given the external factors and new investments, we need to consider 2023 as a year for consolidating and optimizing the business for further growth.