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Net assets

  • Increase in equity ratio to 53%
  • Strict management reduces inventories
  • Substantial decline in trade net working capital

Statement of financial position as of December 31 (in %) (bar chart)

Decrease in property, plant and equipment and intangible assets due to lower investments

Total assets declined by 4% compared to the prior year. This can be attributed in particular to a decrease in property, plant and equipment and intangible assets. Due to lower capital expenditure on the network of own retail stores and decreased impairments recognized on their property, plant and equipment, this balance sheet item decreased by 9%. Financial Position, Capital Expenditure

At 61%, the share of current assets increased compared to the prior year (December 31, 2016: 58%). Accordingly, the share of non-current assets decreased to 39% as of December 31, 2017 (December 31, 2016: 42%). The equity ratio increased and stood at 53% at the end of the year (December 31, 2016: 49%). Consolidated Financial Statements, Consolidated Statement of Financial Position

Trade net working capital as of December 31 (in EUR million)







Change in %


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Trade receivables









Trade payables









Trade net working capital









Thanks to consistent management the inventories decreased on last year. The trend in trade receivables was mainly due to declining sales in the wholesale channel and continued strict management of receivables. The trade payables recorded a higher increase year-on-year as a result of delays in the receipt of invoices.

Positive development of trade net working capital

Year-on year, trade net working capital was thus 13% lower in the Group’s reporting currency and 8% lower in local currencies. The moving average of trade net working capital as a percentage of sales on the basis of the last four quarters improved by 120 basis points as compared to the prior year and came to 18.6% at the end of the year (2016: 19.8%).

The decrease in other assets is mainly attributable to a decrease in deferred tax assets as a result of lower temporary differences in particular. This resulted in a substantial part from the revaluation of deferred tax assets in connection with the tax reform adopted in the United States. The use of tax losses also contributed to the decrease. Notes to the Consolidated Financial Statements, Notes 6

The decline in provisions and deferred tax liabilities is mainly due to the use and release of provisions that had been recognized in the prior year in connection with the decision to early close around 20 freestanding retail stores worldwide. Other liabilities were roughly on a par with the prior year. Notes to the Consolidated Financial Statements, Notes 17 and 20

Lower amount of debt as of the reporting date

Total current and non-current financial liabilities decreased by 38% to EUR 132 million as of the reporting date (December 31, 2016: EUR 211 million). This was driven mainly by a higher cash inflow from operating activities. Financial Position, Capital Structure and Financing

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