DGAP-News: Wolford AG: Revenues and earnings 1st quarter 2013/14
(firmenpresse) - DGAP-News: Wolford AG / Key word(s): Quarter Results
Wolford AG: Revenues and earnings 1st quarter 2013/14
13.09.2013 / 08:00
---------------------------------------------------------------------
Press Release
Wolford announces results for the first quarter of 2013/14
- Revenues decline 2.4% to EUR 32.28 million
- Earnings below prior year
- Continued solid balance sheet structure
- Intensification of wholesale and optimization of retail business
- Goal for full year: revenue growth and positive operating results
Vienna/Bregenz, September 13, 2013. Wolford AG, which is listed on the
Vienna Stock Exchange, can look back on a challenging first quarter in the
2013/14 financial year, despite a slight improvement in the economic
environment. The period from May to July 2013 closed with a 2.4% decline in
revenues to EUR 32.28 million and EBITDA of EUR -3.19 million, compared
with EUR -0.98 million in the previous year. EBIT totaled EUR -5.18 million
(Q1 2012/2013: EUR -3.01 million), which generally reflects expectations.
After an adjustment for foreign exchange effects, the revenue decline
amounted to only 1.1%. Revenue growth in the retail points of sale was
satisfactory at plus 5%, while the online shops recorded a sound increase
of 19%. The generally reserved mood among retailers during the reporting
period was reflected in a 12% decline in revenues from the wholesale
business and negative revenue and earnings development for the Group.
However, the first quarter is the weakest period in Wolford's financial
year for seasonal reasons because comparatively lower revenues are
contrasted by above-average costs.
Earnings below prior year
Revenue growth in the retail business, which equaled 3% including and 4%
excluding foreign exchange effects on a like-for-like basis, was unable to
offset the overall cost increase. These higher costs are attributable,
among others, to increased rental and personnel expenses at existing
locations and to start-up costs for new locations. Negative foreign
exchange differences of approx. EUR 0.7 million were also recognized in the
first quarter. The EUR 0.4 million rise in advertising expenses also played
a role in the EBIT decline, but should be seen within the context of
efforts to strengthen and improve the international positioning of the
Wolford brand.
Continued solid balance sheet structure
The balance sheet structure of Wolford AG remained solid as of the
quarterly closing date on July 31, 2013. The Wolford Group's equity totaled
EUR 73.72 million (July 31, 2012: EUR 81.02 million). The equity ratio
equaled 50% (July 31, 2012: 53%) and gearing was 39% (July 31, 2012: 31%).
Regional developments differ, higher revenues in growth markets
A regional analysis of the first quarter shows different developments. The
USA, which currently generates the highest revenues in the Wolford Group,
recorded sound growth. Italy and Spain reported an improvement in revenues
despite the general weakness in consumer spending, primarily due to the
opening of new locations. Revenues were also higher in Belgium. In Austria
revenues remained constant, but further growth is expected with the opening
of the new location at Vienna Airport and an additional boutique in the new
terminal. The markets in Great Britain, Scandinavia, Germany, France and
the Netherlands registered revenue declines, in part due to foreign
exchange effects. Lower revenues were alsorecorded in Central and Eastern
Europe and in Switzerland. In contrast, the growth markets of Greater China
and the Middle East generated sound double-digit revenue increases.
Performance of product lines differ
In the Lingerie segment, the continuing trend to body-shaping underwear was
reflected in the positive development of revenues. Revenues were also
higher in the Accessories and Trading goods product groups, but slightly
lower in the Ready-to-wear business. Revenues in the small, exclusive
Swimwear product group declined as a result of seasonal factors. Legwear,
the largest product group, reported a substantial revenue decline in
comparison with the first quarter of the previous year, above all in the
wholesale area.
Intensification of wholesale and optimization of retail business
Against the backdrop of business development during the past quarters, the
management of the Wolford Group has initiated a process that includes a
detailed analysis of the company's orientation and opportunities for
optimization in both the strategic and operating areas. The focus on the
wholesale business will be increased, also through the reallocation of
personnel resources and the implementation of an incentive/contribution
system. Another focal point is the optimization of the retail business,
whereby a concept is being developed to increase the frequency in Wolford's
own shops. The existing locations will also undergo a further profitability
assessment. The continuation of marketing measures in selected regions is
designed to strengthen Wolford's position as a leading fashion brand in the
segment of affordable luxury products.
Continuation of international expansion
The continued expansion of the international distribution network will also
represent an integral part of the strategy. The geographical focal points
include the Group's core markets in Europe and North America as well as the
further development of activities in the growth markets of Greater China
and the Middle East where the opening of new locations is planned. Wolford
also sees additional opportunities in the online business, where positive
development shows that further revenue growth can be expected in this sales
channel.
Goal for full year: revenue growth and positive operating results
Based on the measures initiated, we expect an improvement in wholesale
revenues that should halt the current negative trend. The retail business
should also generate further revenue growth. The Management Board Wolford
AG therefore expects an increase in revenues as well as positive operating
results for the 2013/14 financial year.
The report on the first quarter of 2013/14 is available under
www.wolford.com/Investor Relations.
For additional information contact:
Holger Dahmen (Chief Executive Officer)
Thomas Melzer (Chief Financial Officer)
+43 (0) 5574 690-1268 (IR) / +43 (0) 5574 690-1477 (PR)
investor(at)wolford.com
About Wolford AG
Wolford AG headquartered in Bregenz on Lake Constance (Austria) operates 16
subsidiaries and markets its Legwear, Ready-to-wear, Lingerie, Swimwear,
Accessories and Trading Goods product segments in about 70 countries via
more than 260 monobrand stores (own and partner-operated), approximately
3,000 trading partners and online. The company, which has been publicly
listed on the Vienna Stock Exchange since 1995, generated sales of EUR
156.47 million in the 2012/13 financial year (May 1, 2012 - April 30,
2013), and has about 1,600 employees. Since its founding in the year 1950,
Wolford has evolved from a local producer of hosiery to a global fashion
brand in the segment of affordable luxury products.
Wolford Group Key Data
Earnings Data 1st quarter 1st quarter Chg.Data 2012: Adjustment to reflect the earlier application of IAS 19
05/13-07/13 05/12-07/12
in %
Revenues in EUR mill. 32.28 33.07 -2
EBITDA in EUR mill. -3.19 -0.98>100
EBIT in EUR mill. -5.18 -3.01 -72
Earnings before Tax in EUR mill. -5.49 -3.28 -67
Earnings after Tax in EUR mill. -4.35 -2.97 -46
Investments in EUR mill. 1.40 1.30 +8
Free Cash flow in EUR mill. -12.82 -11.41 -12
Employees on average FTE 1564 1612 -3
Balance Sheet Data 31/07/13 31/07/12 Chg.
in %
Equity in EUR mill. 73.72 81.02 -9
Net debt in EUR mill. 28.61 25.37 +13
Working capital in EUR mill. 43.07 44.77 -4
Balance sheet total in EUR mill. 147.96 152.70 -3
Equity ratio in % 50 53 -
Gearing in % 39 31 -
(revised)
End of Corporate News
---------------------------------------------------------------------
13.09.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English
Company: Wolford AG
Wolfordstrasse 1
6900 Bregenz
Austria
Phone: +43/5574/6901268
Fax: +43/5574/6901219
E-mail: investor(at)wolford.com
Internet: www.wolford.com
ISIN: AT0000834007
WKN: 83400
Indices: ATX
Listed: Freiverkehr in Berlin, München, Stuttgart; Frankfurt in
Open Market ; Wien (Amtlicher Handel / Official Market)
End of News DGAP News-Service
---------------------------------------------------------------------
230281 13.09.2013
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 13.09.2013 - 08:00 Uhr
Sprache: Deutsch
News-ID 296329
Anzahl Zeichen: 11565
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 259 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Wolford AG: Revenues and earnings 1st quarter 2013/14"
steht unter der journalistisch-redaktionellen Verantwortung von
Wolford AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
