Good evening. Chorus call operator speaking. Welcome to the presentation of the full year results for 2019 of the Brunello Cucinelli Group. I'd like to remind you that all participants are in listen-only mode. Following the initial presentation, you will have a chance to ask questions. Speakers will be Mr. Brunello Cucinelli, Chairman and CEO of the company, Moreno Ciarapica, CFO, and Pietro Arnaboldi, Head of Investor Relations. In order to receive help from an operator during the conference call, press star followed by zero. Now I'd like to give the floor to the President and CEO of the group, Mr. Brunello Cucinelli.
Welcome to you all, dear investors, analysts, journalists. It is with my utmost pleasure that we are about to start this call at a time that I call of insidious apprehension, that is spawning uncertainty and fear.
In these very last few days, our scientists worldwide have somehow confirmed that we have almost gained control over the virus. Our governments worldwide are seeing to it that everything gets done with priority and authority. Well, personally speaking, the human fear that I was feeling about a month ago has calmed down slightly because from the human point of view, I'm slightly less dreading the situation. I have always claimed that creation has its own rules. It is not always up to human beings to rule over them. That's what history teaches us. I'm still here in my office at Solomeo. I'm sure you all know them. This time there's a bit more of us. There are my daughters, Camilla and Carolina, Francesco, the person in charge of the e-commerce, and Michele, you all know, who is in charge of production.
I would say about 10 people gathered here today. We are all here because we have defined, set up this kind of smaller group that we call alertness committee, because our task is that of watching over on a daily basis to be super alert, focused without giving into any distraction, since we have to make very timely decision according to the daily developments of the situation. We are fully aware that we are about to face a crisis that we decided to call an economic crisis or a temporary crisis. Maybe it will last for three or four months, but it has absolutely nothing to do with the 2008 recession. That was a structural recession, and actually you might remember that we didn't really know our way around that. We would like to follow this schedule for this call.
First of all, I'd like to read out all the highlights of the full year 2019 results. I'd like to give the floor to the CFO, Moreno, who will be enlightening you and giving you some insight on important data and numbers. I'd like to resume the floor to give you the highlights of 2019 and also focusing on who we were up until January 19th. A summary of our plan 2019-2023, and also the 10-year plan. Another very important point, mine and my company's take on this two-month period, and also the ways in which we are tackling the present year. Last but not least, some results as of 29th of February, very important ones.
We have an hour available, but as far as we are concerned, I also said to all the other attendees, we are available for all the time you might need, because as usual, your questions and opinions play an extremely important relevant role for us, especially at this time. Now I'll read out. Basically, net revenue, EUR 610.8 million, +9.9% account exchange rate, +8.6% constant exchange rate, vis-à-vis EUR 553 million last year. EBITDA, EUR 106.1 million, +11.5%. Net income, EUR 49 million adjusted, +7.1%. Revenues in international markets, +11.5%, Italian market, 1.7%. Europe, +12.9%, and North America, 9%, China, 14.6%, and rest of the world, 12.4%. Growth in all the different distribution channels, retail, 14.7%, monobrand wholesale, 8%, multibrand wholesale, 4.1%.
Significant investment of EUR 52.6 million to support the brands within the three-year plan with a financial net debt amounting to EUR 30.1 million vis-à-vis 2019. The board will propose to the shareholders meeting on April 23rd, the distribution of EUR 0.35 dividend, some sort of 45% of the profit, which is basically, our target there is 50%. What about my comments on that? We have defined the past year 2019 as an excellent one because of the growth enjoyed by our company, both from a financial point of view, with a sound increase in sales and margins, and in terms of also brand positioning. We are leading our brand with balanced apprehension and collective commitment as we try to implement all of the indications provided by the World Health Organization and our government, fully sharing their strategies and anxiously awaiting reassuring news from the scientists around the world.
With the very same dedication, we are taking care of the relationship with our Italian external production chain. That represents something special for us and for our beloved nation, fully aware that what is happening to the economy is something that will soon be solved and does not resemble the deeply structural 2008 recession that weighed upon us for years. Knowing that the trend in fashion has veered towards a taste that is more suited to our own, and having completed the Spring/Summer 2020 deliveries, as well as the Fall/Winter 2020 order collection, and I have to say with excellent results and with pleasing feedback from buyers and the trade press alike, we look towards 2020 with a positive attitude.
We are fully aware that the coming year will call for a very careful reading, and we will see it as a standalone year because it will not affect our 2019/2022 plan and the 10-year one, 2019/2028, in which we expect to double our turnover and achieve healthy, balanced and sustainable profits. This is what we have written. We have called 2019 as an excellent year. I'd like to convey to you what we felt, our sentiment, so to speak, on January the 18th, 2020, just to make a comparison. Well, undoubtedly, what we are most pleased with is that the taste of fashion in general has veered very much towards our own taste, and this was very strongly confirmed during the fashion shows in Florence first, during the Men's Fashion Week, and then in Milan with the Ladies Fashion Week.
As you know, these can be considered some sort of five-year cycles. We have the feeling that the image enjoyed by our boutiques really shows this idea, very dear to us, that whoever enters into our doorstep, you basically feel at home, where you experience a very serene and pleasant experience while shopping, and where you basically buy something that could last for a long time, especially for women. Something that you can mend, that you can recondition. These items and garments are produced at places where we try not to harm creation. This idea of absolute luxury brand made in Italy, synonym of craftsmanship, quality, exclusivity, and contemporary taste, this is basically the core of what we do.
We are very particularly pleased with the image that we have been able to convey in our e-commerce, and we have Francesco here who is in charge, both as a presentation of the company and also in terms of sales results. In these very days, we have increased our staff by 60% approximately, but we're just talking about staff because the space was already fully fitted because we think that there has been an increase in demand in the last few weeks. Another important thing is the fruitful relationship with the community. They have confidence in us, and we have esteem and regards of them, and this enables us to work in serenity, creativity, and foresight. This is the sentiment we felt back then.
In terms of numbers, we think we are a pretty sound company, almost debt-free, although we have EUR 30 million net financial position with equity around 55% of revenues, more or less. We have always nurtured the idea to work in order to achieve healthy, balanced, and sustainable profits. In 2012, we went public. It has been a great experience that we would be ready to do it tomorrow morning. It has been eight years now, eight years down the road. From the first year since the listing, our turnover has slightly more than doubled, at an annual average of 11%. EBITDA stabilized between 17% and 18%. We feel this a healthy number. This is how we felt until a couple of days ago. We don't want to change any of this. Let's now talk about the great theme today, the coronavirus.
Towards the end of January, when rumor about the virus started spreading around in a strong manner, we immediately convened a general meeting of the company. We usually hold these meetings once every three months. Back then I said No, just a second. Just one minute backwards. I'd like to give the floor to Moreno, the CFO now. He will give you some insight on 2019, then we will talk about the rest. Thank you.
Good evening, and thank you, Brunello. I'd like to start immediately from slide 10, the income statement. I'll try and be as brief as possible so we can leave room for the further discussion. I am definitely available for any further requests you might have, any detail you want to receive more in-depth after the conference call.
The full year numbers have been processed, neutralizing the effect generated by the application of the new IFRS 16 principle in effect since January the 1st, 2019, in order to make comparison with December 31st, 2018, as it had been already the case for the numbers as of 30th June 2019. The impacts IFRS 16 are anyway referred to in slide 17 and 18. EBITDA EUR 106.1 million with +11.5%, vis-a-vis EUR 95.1 million last year. Margins improved by 20 basis points, moving up from 17.2%- 17.4%. This increase is driven by the first margin development, whose margins moved from 65.9%- 68.5%, with +260 basis points additional thanks to the favorable business development, the increase by 4.2% of like-for-like sales, very positive sell-out rates, favorable price mix, increase of retail from 53%- 55.8%.
Operating costs increased by 240 basis points from 48.7%- 51.1%, and driven by the business development and the strengthening of facilities in terms of staff, services, communication, investments for ongoing initiatives, including the digital world and the new projects, including the natural extension of the Kids line and the bespoke men's suit. There is also the increase in the cost of rents driven by the development of the network. In 2019, six monobrand retail boutiques were opened, with some extension of existing boutiques and five new spaces directly managed in concession inside malls and luxury department stores. The growth in staff costs was impacted by the business development, by the new boutiques, and the increase of staff to support new projects. Investments in communication, very relevant to support the allure of the brand, and the setting up of customized relations with each customer.
In 2019, they amounted to EUR 35.5 million, up EUR 3.2 million vis-a-vis last year. The incidence of D&A, depreciation amortization, moved from 4.7% to 4.8%, highlighting a gradual growth in relation to the important investment plan that is ongoing, that will carry on into the coming years. The incidence of net financial expenses amounted to 0.9%, unchanged vis-a-vis the 0.8% of last year. Adjusted net income, excluding the tax benefits ensuing from the so-called patent box, reached EUR 49.3 million, up 7.1% vis-a-vis the EUR 46.0 million in 2018. Including the benefits of the patent box in the tax burden amounting to EUR 5.6 million in 2019 against EUR 5 million in 2018, net income improved by 7.7%, thus achieving EUR 55 million. As to the net working capital, slide 13, there is an increase of its incidence from 23.4% to 25%.
Mainly, the incidence on sales of inventory amounted to 33.7% vis-a-vis 31.3% as of June 1st, 2019, due to the development of the network, the expansion, high growth of production levels because of very positive order intake and new initiatives, including Kids line and a strengthening of the bespoke men's suits and the development of the digital channel. Trade receivables decreased thanks to the usual careful management of cash-ins and with the impact of the wholesale channel sales. Trade payables increased mainly because of the increase in production in the second half of the year, following very positive order intake. Let's now move on to investment and net financial position. Slide 14.
Investments, EUR 42.6 million. They are part of the multi-year plan, whose target is to maintain our company on the cutting edge in the long term, support our presence on the market, and have the most innovative production logistics and IT research available. Trade investments amounted to EUR 37.7 million. Another investment achieved EUR 14.9 million. Finally, slide 15, net financial position, EUR 30.1 million. That is sound and healthy, thanks to the positive cash generation of the operating activity of the healthy management of the networking capital, and the significant ongoing investment plan. I give the floor back to Brunello.
"I apologize," Brunello says, "but I was so much focused on the current topic, Pia, Lorena, and Peter were actually staring at me, so I then realized." Let's now move on to 2020. Towards the end of January, when rumor about the virus started spreading around, we convened a general meeting with the company. We usually do it once every three months. Back then, I said that I did not know what was going on. We had to proceed in two ways, business-wise. The first thing was to go along and comply with all the indications ensuing from the WHO and our government, and implement all the good practices that we knew.
Now they have become common knowledge. Disinfect as much as possible to keep more distance and avoid close contact. Then also we have large workspaces, going to the restaurant in three shifts to favor air circulation. We are in the countryside anyway, and we use technologies instead of personal meetings, and also anxiously awaiting the results of our science. We hopefully then find a solution soon.
The second aspect of business. Up until a few days ago, the world economy was proceeding and faring pretty well, with good fundamentals. We still consider this to be a cyclical, non-structural moment. I said, this is very important. Mind you, it is a lighter, more lighthearted way of looking at a problem, which we believe is temporary. Hopefully this large issue, big issue, will last as short as possible, three months, six months, maybe a year, hopefully not. At the end of the general meeting, we agreed that we would definitely throw a huge party as soon as we defeat the virus. I asked all my staff, as we did in September 2008, I asked them to be fully available, to be concentrated, focused, creative, respectful, graceful, understanding towards every human being, wherever they may come from.
We said, "Let's work in a focused manner, devoting all of our time to creativity, and let us not spend too much time discussing what we cannot change and that instills fear and negative attitude." As my great master, Thomas More, said, "My God, help me change what I can change. Help me accept what I cannot change." This is the truth. As in 2008, a few days ago, we spoke with all our 500 multibrand accounts, and we told them that we can mutually support each other. Like back then, you should believe me, we received very moving answers. I believe that 5% of today's revenues actually stems and ensues from those letters that we wrote in 2008.
We have this great relationship with them, and there is no doubt that if you stand by me when I'm in difficulty, I will never give up on you. We have been receiving really fascinating letters as a sort of response to what I wrote years ago. These letters are moving to us, but at the same time, this really reasserts what the great value of our company is. Let's now move on to the operating part and the results as of February the 29th. As we say in Italy, we say that a skip year is usually a very unsafe and unfortunate year. On February 29th, we have a like-for-like of the first two months that was very, very positive, as in line with expectations, and of course, excluding China, because we started with two types of management.
Our business in China accounts for more or less 10%, and 2% out of this 10% is accounted for by multibrand customers. In this market, the first two months, we have basically delivered 50% less. Honestly speaking, in the first 10 days of March, we have witnessed a clear improvement. As of today, we have no closed store. No store is shut over there. As you might know, we have not yet started with the travel retail initiative, which is part of the new future projects we are working on. Our revenues is currently broken down as follows: 45% wholesale and 55% retail. We have already completed the Spring/Summer 2020 deliveries, where we have enjoyed a great season. We have basically completed the order intake for the winter 2020, with particularly pleasing results.
As we said, what really supports us is the fact that the trend really is in line and very much akin to our taste. Before moving on to production and inventories, I'd like to read out to you a letter that was sent to us. We call him president, but it's a 40-year-old guy who basically leads the Chinese market, Michael. It is very interesting because of the human and economic development of the whole situation. Just a minute and a half, but it's a really beautiful letter. "My dear Brunello, in China, it all started in the last week of January with the lockdown of the Hubei state. Fear first, and the perception of the real danger a second later. This fear has reached all the different provinces of domestic China. Hong Kong and Macao have been overwhelmed by the very same feelings immediately afterwards.
The timely regulatory measures by government have given way to an abrupt and painful change in our living habits. A month and a half down the road, the scenario is already very different. Emotionally speaking, the drive to start again has definitely beaten fear. Practically, I want to give you a snapshot of the current situation because it can definitely offer solid reasons for hope for your country. As of today, all our stores are open. We had as much as 70% of our stores shut when the outbreak was at its peak. My homework travel time is increasing on a daily basis, and I can estimate that the city traffic has already achieved 80% of its regular volume. Of course, this gentleman lives in Shanghai. There are more and more people dining out every day.
Yesterday, President Xi actually visited the city of Wuhan, and his visit played a very important role, has a very important significance for the whole of nation in marking the end of the emergency time. Individual confidence is growing as the number of diagnosed cases declines. This said, in order to give you a fully updated picture, I'd like to tell you that in order to fully go back to normalcy, what is still missing is the following. Well, we are waiting for schools to reopen, the international traffic inbound and outbound from our country. Domestic travel in China are now happening for nearly all regions, but they are discouraged by mandatory quarantine measures on returning home. Of course, we are missing events that usually liven up the calendar of our stores.
Brunello, Luca, Riccardo, I cannot yet carefully predict what time we will still need in order to cover the last mile. You can tell that he studied in the U.S., and he loved the movie "The Last Mile." I can guarantee, however, that this short break that our country has taken in its great race for development has not changed our ambitions, our desires, and our potential. The recovery has already started. It might reach out to Hong Kong a few months later, but we are already feeling confidence. The whole of our team is looking at the future with balance and courage, and we feel fully fit to resume our path. Just a couple of lines.
You will receive a small gift," but very highly from the human point of view, "that has been from our sales associates to show the gratitude for what you have done for them and their families the past month." Of course, during this time, we gave them the very same remuneration as the past year. Once again, in this gesture, I could appreciate the authenticity of the values that our company features and our brand features. I'm sure that all our Chinese friends will appreciate and hopefully choose us for this reason, too. This letter, I was really keen on reading it out to you because hopefully, it can be an inspiration from the human psychological point of view and maybe from the economic point of view, too. As you know, we manufacture everything in Italy.
70% of our production is located in Umbria and the remaining part in Tuscany and the Marche region . We have 364 small businesses. Employing 15 people on average, very high quality, so 5,000 people in terms of third-party contractors. We are working normally, but we are extremely alert because of what we have been saying so far. We have plans with the third-party contractors with this extraordinary event in 2020. We monitor everything on a daily basis. Based upon this, we push or slow down production. However, we are ready at any given time to double, if needed, the work shifts if needed, and maybe postponing our holidays, so maybe in September, October, so that our coworkers can also gain some important rewards and bonuses. I have to say that this extreme flexibility that we have really is sort of a peace of mind for us.
Also what we really want to highlight is the value of our community. In terms of inventory, we have set up a team of reliable people, valuable people, headed by Riccardo and myself, to monitor, together with Michele, the extraordinary daily variations. Our past experience tells us that in the eight years since our listing, our average in terms of inventory has been 31% of revenues. This year we must be very smart and flexible. As far as investments are concerned, well, investments are mainly focused in the first half of the year, with three important openings for us for the image of the brand. London, towards the end of March, Paris, May, and New York opened in January in the Meatpacking District, a charming neighborhood.
We are also working on three new boutique opportunities, and we have just received a confirmation from Tokyo that it might be done, and that we have scheduled between 2021 and 2022. As you know, these beautiful locations in prime streets, you cannot possibly choose when this can happen or not. Where we do have the opportunity, we think that we might open towards the end of this year, i.e., New York, Madison Avenue, Tokyo, beautiful location, and St. Petersburg. These are three opportunities and projects we are working on. Hopefully, they will be secured. This is an extra, something additional, in 2020. They were scheduled for 2021, but actually, if that was the case, we would remove that part share of the investment from the 2021 accounts and transfer them to 2020.
My dear friends, it's a very important call, this one, and we'd like to seize the very important opportunities that arise so that we can be among the stars when it will all start again. I think it will not be too far away, this restarting point. We also want to consider 2020, see 2020 as a standalone year that should not absolutely impact our medium to long-term plans. Thank you very much for now. I really wanted to highlight all these concepts. I'm sorry for being a bit lengthy, but we really wanted to be there for you. We wanted to convey this message. One last thing before Q&A. The next call is scheduled for May the 10th, I believe. But, if you need it, if you need some more clarifications, you investors, analysts, journalists, do not hesitate to call us because we can help each other. We can give suggestions or advice, please do not hesitate. Thank you for the time being. Let's open the floor for discussion.
Call operator speaking. Let's now start the Q&A session. Whoever wants to ask a question, please press star followed by one on your keypad. In order to exit the waiting list, press star followed by two. Please ask your questions using your microphone. Whoever wants to ask a question, press star followed by one now. The first question from Flavio Cereda, Jefferies. Thank you.
Good evening, Brunello. Can you hear me?
Yes, I can hear you. We all hear.
I apologize, but I'm working from home, so I don't know whether you can hear me properly.
Yes, because you want to protect yourself and others. Well, maybe others more than myself. March the 11th, I have two questions. The quarter has completed. Can you give us a bit more color on how you think you can close the quarter in terms of revenue. This is the first question. The second question has to do with the production value chain that you already mentioned. Let's talk about maybe a negative case, because unfortunately, in Italy, the trend is still pretty dangerous for a couple of weeks, and it is moving southwards, so south bounds.
What kind of flexibility do you have? We know that you have many small businesses and suppliers, but if, for example, a dozen of them are not able to work and manufacture for two weeks, what kind of flexibility do you have to shift the production of one specific garment from one business to the other?
Well, very interesting questions. As far as the first one is concerned, we think that the quarter could be closed pretty in line with last year. Of course, we have 40% of our business in the wholesale channel, so we are not very much dependent on the retail. If you ask me, what do you envisage for the year? Well, as you know, usually at the beginning of the early months of the year, we always try and give you visibility for the whole year.
What I can say is, like in 2008, we have depicted four scenarios on which we work on a daily basis from the economic and also equity points of view. We work on the second scenario, basically. In 2008, in 2009, this was a strike of luck because we were able to actually be successful in the second scenario, and Moreno is smiling here. This is what I want to say. We envisage a positive year in line with how the world will develop, because we can't possibly know what is going to happen. This great relationship we enjoy with our multi-brand partners is very important. This week, they wrote to us, "Are you worried? Are you concerned?" We said, "No, we are absolutely working. No problem whatsoever." Second question, these 364 businesses that I mentioned, more or less 15 employees each.
Of course, if five, seven of them actually experience some difficulty, and if they take a break, so to speak, for a month, actually nothing will happen because there's 364 of them. I'd like to say something here. We have a lot of flexibility, as we did in 2008. I said to everyone, "My dear friends, if we were to work in June, July, and August, then we might take our holidays in October or September/October. We will give out rewards and bonuses, and everybody will be happy." We feel very flexible from the production point of view. Something else that really helps us is that precisely in March Well, March is usually a good month for us because we would go on holiday in March.
Since we never close our company, not even in August, the way we organize our holidays is a couple of weeks in March, then a couple of weeks in July or August. We can say that this outbreak is actually hitting us at the best time, so to speak, the best time of the year for our company, season-wise. I'm pretty confident because I have to say, the last couple of days, the Italians have responded in a very strong way. We were slightly more lighthearted before. I go back to the meeting on January the 30th, when I stated we should not really underplay and underestimate the outbreak. Now there is an awareness, a pretty strong awareness that has spread. I would say that we feel more confident because of this.
This relationship we enjoy with our community is very, very important, as we said this morning during the board meeting. Yes, we have believed in the Made in Italy. We believe in the multi-brand stores. That's why maybe we are slightly more confident, and thank you for your questions.
Best wishes to you, too.
Next question from Melania Flouquet, JP Morgan.
No, I want to ask in English. No, in Italian. Thank you, and good evening. I wanted to have an idea whether the global growth that you saw in March is better or worse than the first two months, and what the trade was in the first two months, because Brunello Cucinelli is less exposed to the Chinese market. That's why I'm asking this question. My second question. What is the slowdown in production for the second half?
Thank you. Melania, production. For the time being, Melania, we have not slowed down anything because, as I was saying before, this is some sort of off month for us, not just for us, but also for the 5,000 contractors we work with. The strong production starts in April and May, we have not slowed down anything. We are normally slow because we have important orders. Everything is actually going very smoothly. I had the impression that you said that you have changed your plan and for the second half. No, what we said is that we spoke with the 364 businesses, whatever we have to do in the coming months, we are willing to do it together. If we have to push more, we will. If we have to slow down, we will. For the time being, there is no change underway. Is it clear? Yes.
Thank you. It's really important that you understand. I will learn English sometimes. What you say is very, very important. The first days of March. We have broken down Chinese revenues from January the 19th, where we had 50% less in the first two months, because the first 19 days were positive. Now, we saw that in these days, there is a clear-cut change for China, just seven days, obviously not much. Last week, we had -16. You should be very careful in how you see our results because we have a very small business there. The trend is improving. There is a reversal in the trend. This week, we did see some slowdown in Europe, and for the time being, no slowdown in the U.S. In fact, that's some really important months. This is the situation nowadays. Thank you.
Thank you.
I'd like to remind you that if you want to ask questions, you can press star followed by one on your keypad. The next question is from Paola Carboni, Equita SIM.
Good evening, Brunello.
Good evening, Paola.
I just wanted to hark back to what you were saying before, i.e., that the performance of the wholesale is mitigating the general effect that we would otherwise experience in the retail channel. Maybe there could be a flat first quarter. I was wondering, what kind of approach will you adopt, or will you ask your multi-brand clients to adopt so that maybe because their sell-out is slightly weaker?
We have known these accounts for more or less 30 years, and these clients, well, we represent a pretty important company for their budget, especially for the ready-to-wear, because there is a need, there is really a lack of ready-to-wear.
We enjoy a special relationship with them as we did back in 2008. Nothing absolutely happened in 2008. I have to say, they keep asking us, "Are you worried for the production?" I say, "No, Paola, I'm not worried even for June, July, August, or September for what awaits us." As usual, together, we can deliver great results. If we have to support, we will support, like we did in 2008, 2009. They are the best in the world. We have known each other forever. We're not worried. The only thing I'd like to say is that I'm particularly in love or passionate about the wholesale channel. I have always thought that a wholesale store stands there for 100 years, whereas a brand does not last that long. Thank you, Paola.
Next question from the English conference from [Benjamin Lakai].
Hi, Brunello, and everybody there. Just had two questions from my side. Just on the wholesale, the orders seem to be going quite well this year, which is great. I just wonder whether you could give us a bit more visibility around the full year growth that you're now expecting for 2020. Clearly, the first quarter seems to have got off to a good start. Second question, just on the space expansion, what should we be expecting in terms of contribution for this year? It sounds as if, actually, we might have a few more openings than we perhaps had anticipated in the second half now. Just, I wonder if you can give us any guidance around that. Thanks very much.
Yes. Let's start from this last question. As we said, we are actually thinking of three beautiful stores, very important ones in New York, St. Petersburg, and Tokyo. They were not accounted for this year. Well, actually, what happened is we came across them. That's what happened, and now, because we want to be present in that market. The line has gone down. I'm sorry. Ladies and gentlemen, the conference call will start shortly. Please stay connected. As far as the wholesale is concerned, I'm always very much in favor of wholesale, truth be told. Of course, we have this partnership with them where we cooperate for the visual merchandising. We organize events with them and their DSAs, the sales associates, they come to us, and we go to them. There is really a great exchange.
Of course, the Fall/Winter season has gone really, really well, both for men's and for women's. We can say that maybe for men's, we are some sort of reference point for a known fashion taste. For women, we are a good point of reference that is really in line with what the fashion taste is experiencing. I would say we are confident. Of course, we're pretty confident for the business, a bit less confident for the mood, generally speaking, of the situation we're in. I hope I was clear in my answer.
Very clear. Thanks very much.
Thank you. Mind you, call us whenever you feel like it. You should know that up until April the 3rd, we work here, then we go home in the evening. I can't say positivity, but we are all focusing very much on our business. There are not many external distractions, so we all have a bit more time.
Next question from the English conference call, Antoine Belge, HSBC.
Yes. Hi, good evening. Antoine Belge at HSBC. I've got three questions, actually. I'd like to follow up on the previous question about the contribution from new stores and also conversion from wholesale to retail. I think last year in 2019, you posted around 15% retail growth with a bit more than 4% like-for-like, but also around 10 points of contribution. As you said, this year will be quite busy in terms of store openings. Could we expect that type of magnitude of around 10% contribution from new stores? My second question relates to online. Is it possible to have some figure about the performance of online in 2019? How much it grew and how much it accounted for in terms of sales? What's your policy for 2020 in terms of your own web online retailers?
My final question relates to the gross margin or what you call the source margin. It was up 260 basis points. What was the impact of the channel mix? What's your outlook for source margin in 2020? Thank you very much.
Some very difficult questions, Antoine, we'll try and give you an answer. E-commerce first. We can say that for us, it accounts for more or less 2%, two point something. That's 20%. This year over the first two, three months, we are growing slightly more, nearly 30%. What we are really interested in is that the people actually logging in and also how much this converts into shops, because it is a very special way of showing garments. For the e-commerce, we have already added 60% additional staff to provide more service. As of today, e-commerce accounts for plus 30% this year.
As far as if they are actually completed and secured, because negotiations will be in this year to be deducted from, but the revenues will be nonexistent because if it goes well, we will open in November, and we are talking about three additional things.
The CEO adds that net of Our prediction, the contribution of the non-comp, i.e. the new stores vis-à-vis the like-for-like was around 7%-8% addition to our ordinary like-for-like. This was our estimate with a small number of openings in terms of ordinary business. Now, we wish that in the second half of the year, we can add the three new stores that Brunello mentioned to partially offset the slightly negative effects of the virus that of course we cannot now predict and forecast. We are preparing margin.
In this year, the channel mix was pretty relevant, the growth of the retail channel. year, the channel mix will grow slightly less. Mix of the first margin, we think that the growth of next year will be slightly lower than the one we had in 2019.
Thank you very much.
Thank you, Antoine. TPAD. There are no more questions. Council operator, this is the end of the call. You can disconnect your phones. Thank you.