DGAP-News: TOM TAILOR Holding AG: TOM TAILOR shows clear increase in revenue and earnings
(firmenpresse) - TOM TAILOR Holding AG / Key word(s): Quarter Results/Quarter Results
09.11.2010 07:30
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PRESS RELEASE
Report on the First Nine Months of 2010
TOM TAILOR shows clear increase in revenue and earnings
- Group revenue rose by 12.2% during the first nine months of 2010
- Retail growth segment clearly outperformed the market and grew by 9.1%
(18.3% including e-shops)
- Adjusted EBITDA increased by 24.4%
- Adjusted net income for the period jumped significantly to EUR 6.5
million
- Revenue forecast raised for 2010
Hamburg, November 9, 2010. The lifestyle company TOM TAILOR looks back on a
successful nine-month period in 2010: TOM TAILOR Holding AG increased its
group revenue during the period under review by 12.2% to EUR 248.8 million
(Q1-Q3 2009: EUR 221.9 million). Both its Wholesale segment and its Retail
growth segment played a part in this. During the third quarter, the Company
accelerated its growth and reported a revenue increase of 15.6% to EUR
101.5 million. As planned, adjusted net income for the period jumped
significantly from a negative EUR 7.1 million in the previous year to
positive income of EUR 6.5 million as of the end of September 2010.
The Retail segment contributed significantly to the increase in Group
revenue, climbing 37.5% to EUR 69.2 million during the first nine months of
2010 (Q1-Q3 2009: EUR 50.3 million). On a like-for-like basis, the Retail
segment grew 9.1% excluding the highly dynamic e-shops (18.3% e-shops). In
the third quarter, retail revenue rose from EUR 20.0 million to EUR 26.9
million (+34,5 %). On a like-for-like basis, Q3 revenue increased by a
strong 15.6% including e-shops (26.7% excluding e-shops). According to
information supplied by TextilWirtschaft, average market growth for the
textile industry in Germany was 4% during the first nine months of 2010
(source: TextilWirtschaft 40/2010). This means TOM TAILOR significantly
outperformed the average growth of the textile sector in Germany in the
first nine months of 2010. The Retail segment's share in total revenue for
the period amounted to 27.8% (Q1-Q3 2009: 22.7%). The number of proprietary
retail stores has increased by 29 since December 31, 2009, to 116 stores as
of the end of September 2010.
At EUR 179.6 million, revenue in the Wholesale segment in the first nine
months of 2010 was 4.7% above the level of the previous year (Q1-Q3 2009:
EUR 171.5 million). During the third quarter, this segment showed a revenue
increase of 10.0%, to EUR 74.6 million (Q3 2009: EUR 67.8 million).
'During the past nine months, we have consistently and successfully
implemented our growth strategy. Our growth activities are focused on
expanding our controlled retail sales areas and on systematically enhance
our international distribution network in our core markets in Germany,
Austria, Switzerland, the Benelux countries, and France, as well as
recently in eastern Europe. The targeted expansion of our proprietary
retail areas also serves to increase the visibility of our brands TOM
TAILOR Casual and TOM TAILOR Denim. In this way, we are creating the
optimal foundation to help us ensure the long-term profitability and
competitiveness of TOM TAILOR', commented Dieter Holzer, Chairman of the
Management Board of the TOM TAILOR Group.
Excluding one-time effects, TOM TAILOR's adjusted EBITDA rose by 24.3% to
EUR 29.2 million during the first nine months of 2010 (Q1-Q3 2009: EUR 23.5
million). The Company also managed to increase its adjusted EBITDA margin
again, which amounted to 11.8% (Q1-Q3 2009: 10.6%). One-time effects can
primarily be attributed to expenses incurred in connection with the IPO
during the first quarter of 2010. EBITDA in the Retail segment reached EUR
6.1 million (Q1-Q3 2009: EUR 4.7 million), while adjusted EBITDA in the
Wholesale segment came to EUR 23.2 million (Q1-Q3 2009: EUR 18.8 million).
The reported group EBITDA during the first nine months of 2010 was EUR 21.6
million (2009: 23.8 million).
During the third quarter of 2010, the adjusted EBITDA reached EUR 15.8
million, and was therefore consistent with last year's level; the margin
decreased to 15.6% (previous year: 18.0%). The cause of this development
were primarily production bottlenecks caused by the recovering global
economy and the increasing domestic demand for textiles in China as well as
increased cotton prices. The ensuing longer production times had to be
compensated in part by higher logistical and freight expenses. TOM TAILOR
views this effect on earnings as temporary and is acting on the assumption
that cotton production and demand conditions will normalize in the spring
of 2011 in connection with noticeably lower procurement and logistical
costs. At the same time, the Company has reconfirmed its strategy of
expanding its proprietary stores: its proprietary spaces allow for higher
margins as a result of greater control, in addition to making the company
better able to face price fluctuations on the purchase side.
The financial result as of the end of September 2010 amounted to a net
financial expense of EUR 10.3 million. Despite special charges related to
debt restructuring in the course of the IPO of approximately EUR 3.4
million, the financial result has improved almost EUR 4 million year on
year (Q1-Q3 2009: net financial expense of EUR 14.2 million).
Excluding one-time effects, net income for the period jumped by EUR 13.6
million to EUR 6.5 million, resulting in adjusted earnings per share of EUR
0.48. The adjusted net income for the third quarter of 2010 also improved
significantly by 127.9% to EUR 9.8 million (Q3 2009: EUR 4.3 million).
Lower interest charges after debt restructuring, the non-recurring
IPO-charges, and consistent cost management and continuous process
optimization also offer future potential for additional profitable growth.
The Management Board has adjusted the revenue forecast for 2010 to reflect
growth of over 12% year on year, accompanied by a moderate increase in the
absolute EBITDA. After eliminating the LBO-structure at the end of the
first quarter, the Management Board expects a significant improvement to
net income for the year after taxes.
TOM TAILOR's business model consciously combines the emotional added value
of its lifestyle brands with the strategic advantages of an intelligent
system provider ('Act Premium, Sell Volume'). The advantages of acting as a
system provider derive from TOM TAILOR's ability to swiftly adapt the
latest fashion trends and its commitment to offer high quality at
attractive prices. Development, design, and production of all TOM TAILOR
collections are facilitated through systematic sales-floor planning
tailored to the respective customer needs. For 2011, the Company is acting
on the assumption of stable private consumption and a slight additional
increase in economic development in its European core markets.
TOM TAILOR will consistently push forward with the profitable growth
strategy it has implemented. Its additional expansion will focus on its
Retail segment and on opening additional company-operated stores. Because
TOM TAILOR's owned and operated stores have not yet sufficiently penetrated
its core markets, there is still sufficient potential for future growth.
The Company has already laid the foundation for additional expansion during
the fourth quarter of this year by assuming all distribution activities for
Russia and Hungary in thebeginning of October, in order to establish even
more comprehensive coverage for TOM TAILOR in these markets, and to be able
to react more quickly and in a more directed manner to market conditions
there in the future. Furthermore, TOM TAILOR also entered into a joint
venture with the owner of its long-time partner Sportina in the beginning
of October. As a result, the 23 former franchise stores were converted into
proprietary retail stores. The goal of this strategic merger is forced
retail expansion in southeastern Europe, including Croatia, Slovenia and
Serbia. Five additional retail stores should also be opened by the end of
this year. Around 20 more new stores should then follow by the end of 2013.
In the wholesale segment sales space productivity is to be increased across
all product lines and controlled shop-in-shop sales areas and
franchise-stores expanded further. TOM TAILOR plans to accelerate expansion
in its key foreign markets in addition to its home market in Germany,
resulting in the reduction of country-related dependencies.
Key Figures TOM TAILOR Holding AG:
Q1-Q3 Q1-Q3 Changein Q3 Q3 Changein
EUR million 2010 2009 % 2010 2009 %
Revenue 248.8 221.9 12.2 101.5 87.8 15.6
Adjusted EBITDA 29.3 23.5 24.4 15.8 15.8 0.1
Adjusted EBITDA margin 1.1%- -2.4%-
in % 11.8 10.6 points 15.6 18.0 points
One-time effects 7.6 -0.3 -- 0.4 0.5 --
due to IPO 6.4 0.0 -- 0.02 0.0 --
EBITDA 21.6 23.8 -9.2 15.4 15.3 0.9
-2.0%- -2.2%-
EBITDA margin in % 8.7 10.7 points 15.2 17.4 points
Adjusted net income for
the period 6.5 -7.1 -- 9.9 4.3 129.3
One-time effects
including imputed tax
effect 11.9 4.0 -- 1.7 1.8 --
due to IPO 4.5 0.0 -- 0.01 0.0 --
Adjusted net result for
the period 6.5 -7.1 9.9 4.3 230.2
Net result for the
period -5.5 -11.1 -50.8 8.2 2.5 328.0
Capital expenditure 19.1 11.2 71.2 9.1 1.1 718.6
Number of employees as
of September 30 (total) 986 823 19.8 986 823 19.8
EUR million Sep. 30, 2010 Dec. 31, 2009 Changein %About TOM TAILOR
Total assets 283.4 250.1 13.3
Equity 88.3 -68.2 229.5
Equity-to-assets ratio in % 31.2 -27.3 --
Net financial debt 60.3 183.9 -67.2
TOM TAILOR - Casual fashion for a casual life
The TOM TAILOR Group is an international and vertically integrated
lifestyle company, offering stylish casual wear and accessories for men and
women, teenagers, and children in a medium price range. Since its
establishment in 1962, TOM TAILOR's authentic fashions have highlighted a
positive and light-hearted attitude to life. With its brands TOM TAILOR
Casual and TOM TAILOR Denim, TOM TAILOR is represented on the fashion
market by 12 collections annually, complemented by 17 licensed product
groups. The fashion group distributes its collections through its wholesale
and retail segments. TOM TAILOR is a dynamic company that has continuously
grown and expanded for many years.
For additional information please contact:
Dr. Andrea Rolvering
Head of Investor Relations&Corporate Communications
TOM TAILOR Holding AG
Telephone: +49 (0) 40 589 56 429
Fax: +49 (0) 40 589 56 498
Email: anr(at)tom-tailor.com
www.tom-tailor.com
09.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
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Language: English
Company: TOM TAILOR Holding AG
Garstedter Weg 14
22453 Hamburg
Deutschland
Phone: +49 (0) 40 589 56 0
Fax: +49 (0) 40 589 56 398
E-mail: info(at)tom-tailor.com
Internet: www.tom-tailor.com
ISIN: DE000A0STST2
WKN: A0STST
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in München, Düsseldorf, Berlin, Hannover,
Stuttgart
End of Announcement DGAP News-Service
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Datum: 09.11.2010 - 07:30 Uhr
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