Leonardo, 85% turnover growth since start of the year

Leonardo, an international footwear retailer headquartered in Oradea, in the first six months of this year generated turnover worth above 54.6 million euros (184m RON), up 85% against the same period last year.
During the same period, the company’s net income rose by 25%, from 2.8m euros (10.16m RON) to 3.6m euros (12.12m RON).
“The heavy increase is due to the expansion of the store network and also to commercial policies that determined the positive trend of sales in each store,” Gratian Ivan, commercial manager of Leonardo, told ZF Transilvania.
According to him, by yearend Leonardo expects to operate 150 stores in Romania, 45 in Hungary and 2 in Bulgaria, which means Leonardo will open another 30 stores domestically, as well as 5 in Hungary, over the coming months.
This year, Leonardo’s budgeted turnover stands at 120m euros, up 70% on last year. The figures refer exclusively to the Romanian business, while for Hungary the company estimates 15m euros and 2m euros for Bulgaria.
In 2006, Hungarian stores generated turnover worth 11.2m euros, while the Bulgarian market, on which Leonardo has been present since last August, derived turnover worth 1m euros.
Besides Leonardo SRL and Leonardo Hungary Kft, Leonardo group of firms includes Leonardo Design, a producer of commercial furniture and interior design. Leonardo SRL and Leonardo Hungary Kft generate 99% of the group’s sales.
Another strategy Leonardo applies is the development of a network franchise, which according to the company’s management; is a natural development for Leonardo’s business. The management believes the advantage of a franchise system is that it would allow Leonardo to have stores in smaller cities.
The products sold through Leonardo’s network come from both domestic and foreign suppliers, with the latter accounting for 60%.
Leonardo was set up in 1994, in Oradea, with Florin Panea and Pavel Dan as partners. In 2004, Florin Panea bought his partner out of the business and became the single shareholder and manager of the group.
Leonardo’s rivals on the domestic market include Benvenutti, Musette and Otter.