Wolford Aktiengesellschaft

EANS-News: Wolford announces results for the first quarter of 2014/15

  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.

quarterly report

Wolford announces results for the first quarter of 2014/15 

- Substantial earnings improvement and return to profitability
- Revenues slightly below prior year
- Very solid balance sheet structure
- First results of strategic refocusing visible on the market
- Primary goal for FY 2014/15: operating turnaround

Vienna/Bregenz, September 12, 2014. Wolford AG, which is listed on the Vienna
Stock Exchange, returned to profitability in the first quarter of the 2014/15
financial year (May to July 2014). Revenues declined by a slight 1.1%, or EUR
0.37 million, to EUR 31.91 million, but the development of earnings was sound.
EBIT improved from EUR -5.18 million to EUR +3.02 million and EBIT, adjusted for
non-recurring income and expenses, improved from EUR -5.18 million to EUR -0.17
million. The company also recorded positive net profit of EUR 1.49 million for
the first time in the seasonally weak three-month period from May to July (Q1
2013/14: EUR -4.35 million). The slight decline in revenues resulted primarily
from the closing of unprofitable locations and the expected reserved market
acceptance of the spring-summer 2014 Trend collection. The substantial earnings
improvement resulted from the steady implementation of optimization measures and
special effects. Wolford's primary goal for the 2014/15 financial year is to
complete the operating turnaround with positive EBIT. "Wolford's growth must be
sustainably profitable. Our refocusing measures are based on this objective and,
as our first quarter results show, we are making good progress", explained Axel
Dreher, Speaker of the Wolford Management Board.

Further growth in the retail business, but different regional developments

Wolford's retail business continued its positive development with a year-on-year
increase of 1% in revenues for the first quarter. Sound development was
recorded, above all, in the online business with revenue growth of 29%. However,
wholesale revenues were 4% lower, but the downward trend from the previous
quarters could be further reduced. A regional analysis of first quarter revenues
shows different developments that were influenced by the closing of points of
sale. Wolford recorded lower revenues in the USA, Austria, Switzerland, Belgium
and Central and Eastern Europe, and slight growth in Germany and the
Netherlands. Great Britain and Scandinavia reported overall revenue declines,
but Wolford's own retail business grew on a like-for-like basis also in these
countries. Revenues were stable in France, and growth was strong in Italy and
Spain. In the growth market of Asia the company saw a further double-digit
increase in revenues, above all due to the opening of new locations and the
expansion of the partner business.

Significant operating earnings improvement and first-time net profit in Q1

Wolford recorded a positive net result for the first time in the seasonally weak
months from May to July and generated a strong increase in operating earnings.
"The substantial improvement in adjusted EBIT from 
EUR -5.18 million to EUR -0.17 million was based on the sale of a lease option
for a location in Switzerland, but was also supported by further savings in
operating areas, above all in personnel costs", explained Chief Financial
Officer Thomas Melzer. The sale of non-core land resulted in proceeds of EUR
6.71 million as well as a book gain of EUR 3.37 million. This led to a
significant improvement in EBIT from EUR -5.18 million to EUR +3.02 million and
in earnings after tax from EUR -4.35 million to EUR +1.49 million. 

Very solid balance sheet structure

The asset and capital structure of Wolford AG was further optimized up to the
balance sheet date on July 31, 2014 and remains very solid. The Wolford Group's
equity amounted to EUR 75.99 million (31.07.13: EUR 73.72 million). The equity
ratio equaled 53% (July 31, 2013: 50%) and gearing equaled 24% (July 31, 2013:

First results of strategic refocusing visible on the market 

After the first quarter of 2014/15, Wolford can demonstrate progress in all key
areas of the strategic refocusing. "The fall-winter 2015/16 collection, which is
the first to follow our new orientation, will be launched in January 2015, and
we are optimistic that it will be well received by our business partners and
customers all over the world", indicated Axel Dreher. Internal processes and
structures were further optimized to make even better use of the company's
strong innovation potential, which is demonstrated by innovative and newly
introduced products like PURE 50 Tights and the Sheer Touch Lingerie series.
Marketing activities are being intensified at the same time and, since July, the
"Unforgettable Touch of Wolford" can also be experienced at Wolford's points of
sale in the new, emotional imagery. "Many well-known personalities are fans of
the Wolford brand - and we want to communicate this more actively in the
future", added Axel Dreher. 

Further new openings planned, integration of sales channels

Wolford will continue to establish company-owned boutiques in key strategic
cities and top locations, as is illustrated by the recent openings in Barcelona
und New York. The company is also strengthening the integration of individual
sales channels in order to utilize the momentum and growth potential of the
online business. Activities to strengthen the wholesale business will continue,
and the share of floor space with trading partners but under Wolford's direct
operation shall be further expanded.

Primary goal for FY 2014/15: operating turnaround

Based on the measures initiated and implemented to date, the Management Board of
Wolford AG has defined the operating turnaround as the primary goal for 2014/15.
Substantial progress was made in generating positive EBIT during the past
months. The arrival of the fall-winter collection 14/15 and the first successful
results of the improved marketing activities have turned the revenue curve
upward. If this trend continues, Wolford can look forward to a successful
financial year with growth not only in earnings but also in revenues.

The report on the first quarter of 2014/15 is available under
company.wolford.com / Investor Relations.
For additional information contact:
Axel Dreher (Speaker of the Management Board)
Thomas Melzer (Chief Financial Officer)
+43 (0) 5574 690-1268 (IR) 
investor@wolford.com | company.wolford.com
Wolford Group Key Data

Earnings Data                                                                
                                    1st Quarter 1st Quarter
                                    05 - 07/14  05 - 07/13  Chg. in %  2013/14
  Revenues               in EUR mill.    31.91       32.28         -1   155.87
  EBITDA adjusted 1)     in EUR mill.     1.94       -3.19       >100     7.11
  EBIT adjusted 1)       in EUR mill.    -0.17       -5.18        +97    -0.97
  EBIT                   in EUR mill.     3.02       -5.18       >100    -4.72
  Earnings before tax    in EUR mill.     2.79       -5.49       >100    -5.89
  Earnings after tax     in EUR mill.     1.49       -4.35       >100    -2.81
  Capital expenditure    in EUR mill.     2.07        1.40        +48     7.87
  Free cash flow         in EUR mill.    -1.03      -12.82        +92    -0.97
  Employees (on average) FTE              1555        1564         -1     1562

Balance Sheet Data                                                              
                                  31.07.2014  31.07.2013  Chg.in %  30.04.2014
  Equity                 in EUR mill.  75.99       73.72        +3       74.38
  Net debt               in EUR mill.  17.95       28.80       -38       17.04
  Working capital        in EUR mill.  38.11       43.26       -12       33.72
  Balance sheet total    in EUR mill. 142.54      147.96        -4      138.12
  Equity ratio           in %             53          50         -          54
  Gearing                in %             24          39         -          23

1) Adjusted for non-recurring income of EUR 3.37 million and non-recurring
expenses of EUR 0.19 million in Q1 2014/15

About Wolford AG
Wolford AG, which is headquartered in Bregenz on Lake Constance (Austria),
operates 16 subsidiaries and markets its products in roughly 60 countries
through 270 monobrand stores (own and partner-operated), approximately 3,000
trading partners and online. The company, which has been listed on the Vienna
Stock Exchange since 1995, generated revenues of EUR155.87 million in the 2013/
14 financial year (May 1, 2013 - April 30, 2014) and has about 1,560 employees.
Since its founding in 1950, Wolford has become a leading global manufacturer's
brand in the segment of luxury tights, exclusive lingerie and high quality

Further inquiry note:
Wolford AG
Thomas Melzer (CFO)
Tel.: +43 5574 690 1268
Web: www.wolford.com

end of announcement                               euro adhoc 

company:     Wolford Aktiengesellschaft
             Wolfordstrasse 1
             A-6900 Bregenz
phone:       +43 (0) 5574 690-1268
FAX:         +43 (0) 5574 690-1219
mail:     investor@wolford.com
WWW:         company.wolford.com
sector:      Textiles & Clothing
ISIN:        AT0000834007
indexes:     ATX Prime, ATX Global Players
stockmarkets: free trade: Frankfurt, regulated dealing: Wien, ADR: New York 
language:   English

Original-Content von: Wolford Aktiengesellschaft, übermittelt durch news aktuell

Weitere Meldungen: Wolford Aktiengesellschaft

Das könnte Sie auch interessieren: