Ecco footwear brand faces continued losses, closes factories in Portugal and Vietnam, and shifts production to Thailand, Indonesia, and China.

Key summary

The Danish footwear brand Ecco is facing a business crisis after reporting losses of 280 million Danish kroner (US$42 million) in 2024 and 180 million Danish kroner (US$27 million) in 2025. Sales have declined in both the Americas and Europe. The company announced a restructuring plan, which includes closing factories in Portugal (650 employees) and Vietnam (1,400 employees), and shifting production to Thailand, Indonesia, and China. This is expected to reduce costs by 80 million euros, or 600 million Danish kroner, annually. The company will also close 60 unprofitable stores, focusing on e-commerce and wholesale. The founding family is injecting an additional 50 million euros (370 million Danish kroner) in capital. Following the resignation of CEO Thomas Gøgsig, the company will begin recruiting a new CEO from outside the company in 2027. The company continues to operate in Russia despite the war in Ukraine. The shift in production may reduce the value of finished goods exports from Europe, but it will increase the company's manufacturing role in Asia.