Wonders of Elche and the Danubio footwear group navigate a cautious rebound
Shoe company from Elche continues to face the hangover of last year when covid left a lingering impact on demand across European markets. The ongoing pressure weighed on the company’s progress in Spain and in the non-EU territories where it operates. As a result, the Carbonell family business concluded the year with a turnover of 19.2 million euros, reflecting a 2.15% correction, as disclosed in the balances filed at the Commercial Registry under the corporate name Calzados Danubio.
Even so, the decline was notably softer than the 2020 downturn, which saw a 32% drop due to strict lockdowns and the suspension of social life worldwide. Francisco Oliver, the company’s managing director, describes the trend as largely anticipated: two years of downturn followed by two years of improvement. Current data point to a 2022 close around 24 million euros in sales, marking about a 25% year-over-year rise.
It is important to note that footwear brands spent most of the previous year preparing for a post-pandemic phase. Oliver highlights that orders placed in the toughest period were aimed at stores that would reopen next summer, aligning 2021 figures with expected demand for the season. He also mentions existing warehouse stock tied to products that suffered from muted demand during quarantine, a common reality for many retailers at the time.
The Carbonell family, best known for Wonders, the Elche-based brand, has continued to build on its domestic performance while maintaining a cautious outlook for international markets. The group began to see a shift after the 2020 shock, with the national market showing resilience and a modest recovery in non-EU markets. Specifically, domestic sales rose from 7.9 million to 8.3 million, while non-EU markets increased from 3.3 million to 3.5 million. In contrast, shipments to the broader European Union fell from 8.4 million to 7.5 million euros, highlighting ongoing regional variances in demand and channel mix.
Wonders advances through a generational transition
The revenue pullback translated into a sharper decline in profitability, with the first signs of rising costs observed last year. Profit fell by 35.6%, dropping from 867,000 euros to 558,000 euros. Against that backdrop, Oliver projects that revenue growth for the year will likely translate into higher results, though profits may not rise at the same pace due to accelerating cost pressures—a challenge faced by much of the footwear sector. He also notes that supply chains have gradually normalized, helping stabilize the operating environment.
Wonders confirms that ongoing uncertainty and inflation have yet to derail the rebound in post-pandemic orders. The management emphasizes a couple of strategic points in the latest report: the growth of direct-to-consumer sales and the expanding role of online channels. Online sales, which rose 17 percent last year, now account for about 7% of the company’s revenue, signaling a clear shift in distribution strategy and customer engagement.
Looking ahead, the company continues to emphasize discipline in cost management and the importance of maintaining a balanced portfolio across its store network and e-commerce platforms. The management team points to resilience in core markets while continuing to monitor inflationary pressures that could affect margins and consumer purchasing behavior. The post-pandemic rebound in orders remains a key bright spot, with expectations that supply chains will maintain stability and product availability will align with consumer demand.
Overall, Wonders is navigating a transitional period as it consolidates the generational handover in leadership and product strategy. The firm remains focused on strengthening its brand footprint in Spain and selectively expanding its international footprint, supported by a robust direct-to-consumer plan and a measured approach to inventory and cost control. This approach aims to sustain momentum in the coming years, with the brand seeking to translate market gains into durable profitability and continued growth for its Wonders label in the European and global markets.