Munich posts 40% revenue growth in 2022
Spanish footwear brand Munich recorded a remarkable result in fiscal 2022-23. The Catalonia-based sneaker and fashion footwear brand, active also in handbags and eyewear, has confirmed it will show again at Pitti Uomo, and indicated that, in fiscal 2022-23 (closed on March 31 2023), it recorded a revenue of €74.3 million, up 40% over the previous year and well above its pre-Covid figures.
Italy was once again Munich's top European market outside Spain: revenue for the brand's Italian subsidiary grew from €3.3 million in 2021-22 to €3.9 million this year, a 20% rise. With the commercial campaign for Fall/Winter 2023-24 in its closing stages, Munich is set to top the €5 million revenue mark in Italy, and will expand the range of products distributed in the country, introducing also fashion, sport and padel shoes, as well as accessories and bags. Overall, Munich's assortment is well-balanced between girls’ and women's shoes, accounting for 55% of the range, and boys’ and men's shoes, with the remaining 45%. The children's segment is growing revenue-wise, and currently accounts for 25% of total sales. In a press release, Munich indicated that its best-selling models are the Clik, Ripple, Legit, and the newly introduced Road, alongside its evergreens Massana, Sapporo and Wave. Sales of non-sneaker models have increased by 35%, and currently account for 52% of the brand's wholesale revenue. In its domestic market, Spain, Munich's revenue grew by 69%, reaching €44.2 million.
Global design hub
Munich is investing heavily on product design, and is busy exploring new segments as well as consolidating existing product categories. The brand's new design centre, located in Barcelona's hip [email protected] district, is hiring new staff, and working on new models featuring fabrics that are trending in the footwear sector. Munich is developing a new line, to be commercialised in the Fall/Winter 2024, that will allow it to "make its fully fledged entry in the fashion industry, integrating all product categories in the same hub," said the brand, currently led by CEO Xavier Berneda.
Retail revenue doubles, new stores in Spain
In 2022-23, Munich's direct retail sales increased significantly compared to the previous year, reaching €16.1 million. The brand opened several new monobrand stores and entered the travel retail segment, opening shops at the Madrid Barajas and Barcelona El Prat airports. Munich currently operates 29 monobrand stores in Spain, in Barcelona, Madrid, Malaga, Valencia and other cities, and will soon open two new addresses, in Barakaldo and Marbella. Munich products are also available at various El Corte Inglés department stores throughout the country.
Fashion accessories are becoming a significant revenue source for Munich. After opening the ‘Only Bags’ store at The Style Outlets shopping mall in Viladecans (near Barcelona), selling men's and women's accessories only, the brand's revenue in the category grew 28% over the previous year.
Expanding outside Europe
In 2022-23, Munich's European revenue outside Spain grew 45% over the previous year to reach €9 million, with Portugal and Ukraine notably doubling their sales, while Italy remains the top-selling country. But the brand has grown most significantly outside Europe, where it is present in 64 countries, which account for 67% of its export revenue. Munich sneakers are especially well positioned in Latin America. Sales have "trebled in many Latin American countries, and padel and futsal shoes are increasingly popular, both at the professional and amateur level," said Munich, adding that it intends to "continue to expand in the Americas, selling its products in countries like Chile, Costa Rica, Colombia and Guatemala." Notably, Munich said that it is now "successful also in Africa (Tunisia) and in Asia, posting record sales in countries like Malaysia and Thailand."
Padel shoes (and rackets) a growth driver
A growing number of padel shoes and rackets are featured in Munich's sport range, and have become one of the brand's main growth drivers. After improving its padel shoe technology, Munich has introduced four new padel racket models, the X-Faith, X-Flow, X-Heal and X-Soul. It has also signed up as brand ambassadors two stars of this emerging sport, Franco Stupaczuk, number 5 in the World Padel Tour ranking, and Verónica Virseda, number 12 in the women's ranking. In 2022-23, padel products generated a revenue of nearly $2.8 million, up 52% over the previous year, equivalent to 150,000 pairs of shoes sold. Besides having a solid presence in the futsal category, Munich has strengthened its position in hockey, becoming the official sponsor of the Spanish Hockey Federation (RFEH). As for football, Munich (founded by Luís Berneda in 1939 in Sant Boi de Llobregat - initially known as Berneda, and since 1964 as Munich) has become an official partner of the Spanish Football Federation (RFEF), supplying sport footwear to the refereeing teams in the men's and women's leagues’ top two tiers. Finally, Munich emphasised the growth of its STB lifestyle line, which has become "in a short period of time one of the brand's main elements," for its casual-streetwear style consistent with the preferences of the younger generation and the latest urban fashion trends.
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