Vienna/Bregenz, September 8, 2017: Wolford AG, which is listed on the Vienna Stock Exchange, stabilized its revenues in the first quarter of its current financial year (May 2017 July 2017). Adjusted for currency items, revenues grew by 4.9% to 29.09 million. Consistent with this growth, operating earnings also improved on the weak previous years quarter (EBIT: -7.22 million; previous year: -8.08 million). Including taxes calculated in line with IAS 34, earnings after tax were also ahead of the previous years figure ( -6.91 million; previous year: -8.03 million).
Revenue growth in retail and wholesale businesses
The proprietary retail business and the wholesale business both posted year-on-year revenue growth in the first three months, with retail revenues rising by 6.0% and wholesale revenues by 2.2%. The proprietary online business reported very successful developments, with revenue growth of almost 27.9%. This growth was driven by improved product availability and successful marketing campaigns.
Growth in most core markets
Individual regions showed highly disparate developments in revenues in the first three months. The US, Wolfords largest market in terms of revenues, posted a particularly strong performance, with double-digit revenue growth driven above all by the proprietary online business. Spain, the Netherlands, and East European markets also reported double-digit growth rates. Wolford generated single-digit growth in Italy, Scandinavia, Asia, Austria, Germany, and Switzerland. Due not least to the impact of Brexit, the depreciation in the British pound, and the closure of three locations, Wolford reported a double-digit reduction in revenues in the UK, a factor which had a moderate impact on earnings. Wolford also reported a single-digit fall in revenues in France and Belgium.
Operating earnings up on previous year
Operating earnings (EBIT) amounted to -7.22 million, as against -8.08 million in the previous year. On the one hand, the company significantly reduced its inventories, which fell by 3.13 million compared with the previous years quarter. On the other hand, this also led material costs to decrease by 1.78 million. The establishment of a central sales platform for the EMEA region and the streamlining of administrative structures in Bregenz led staff costs to fall by 1.25 million to 17.43 million. Other operating expenses, by contrast, rose by 1.20 million to 13.29 million. This was due above all to advisory expenses incurred in the first quarter, for example in connection with financing measures. Wolford had an average of 1,491 employees (FTEs) in the first quarter, as against 1,557 employees in the equivalent period in the previous year.
Outlook
Wolford confirms outlook: For the current financial year, the management has budgeted only slight year-on-year revenue growth and further negative earnings. Implementation of the restructuring measures aimed at improving earnings is governed by a two-year schedule and the relevant measures will only take full effect from the 2018/19 financial year. Wolford expects to generate positive operating earnings once again from then onwards.
The report for the first quarter of the 2017/18 financial year can be downloaded under company.wolford.com, Investor Relations.
http://company.wolford.com/wp-content/uploads/2017/09/Wolford_Q1-Report_2017_18_EN.pdf
Contact:
Maresa Hoffmann (Specialist Investor Relations & Corporate Communications)
Tel.: +43 5574 690 1258 | investor(at)wolford(dot)com | company.wolford.com
| Earnings Data | 05 -07/17 | 05 -07/16 | Chg. in % | 2016/17 | |
| Revenues | in mill. | 29.09 | 27.74 | +5 | 154.28 |
| EBIT | in mill. | -7.22 | -8.08 | +11 | -15.72 |
| Earnings before tax | in mill. | -7.44 | -8.25 | +10 | -16.57 |
| Earnings after tax | in mill. | -6.91 | -8.08 | +15 | -17.88 |
| Capital expenditure | in mill. | 0.33 | 2.69 | -88 | 6.72 |
| Free cash flow | in mill. | -7.08 | -14.19 | +50 | -9.45 |
| Employees (on average) | FTE | 1 491 | 1 557 | -4 | 1 544 |
| Balance Sheet Data | 31.07.2017 | 31.07.2016 | Chg. in % | 30.04.2017 | |
| Equity | in mill. | 38.09 | 55.81 | -32 | 44.88 |
| Net debt | in mill. | 37.90 | 35.59 | +7 | 31.27 |
| Working capital | in mill. | 44.82 | 48.72 | -8 | 45.73 |
| Balance sheet total | in mill. | 129.60 | 144.14 | -10 | 138.39 |
| Equity ratio | in % | 29 | 39 | -25 | 32 |
| Gearing | in % | 99 | 64 | +55 | 70 |
| Stock Exchange Data | 05 -07/17 | 05 -07/16 | Chg. in % | 2016/17 | |
| Earnings per share | in | -1.41 | -1.63 | +14 | -3.64 |
| Share price high | in | 19.75 | 25.70 | -23 | 26.01 |
| Share price low | in | 16.00 | 24.49 | -35 | 19.10 |
| Share price at end of period | in | 17.42 | 25.60 | -32 | 19.28 |
| Shares outstanding (weighted) | in 1,000 | 4,912 | 4,912 | – | 4,912 |
| Market capitalization (ultimo) | in mill. | 87.10 | 128.00 | -32 | 96.38 |
*) Figures as of July 31, 2016 retrospectively adjusted due to corrections made in connection with OePR audit review
About Wolford AG:
Founded in 1950, Wolford AG is headquartered in Bregenz, on lake Constance. It operates 16 subsidiaries and markets its products in about 60 countries via around 267 monobrand boutiques (owned and partner operated) and through 16 online stores. Listed on the Vienna Stock Exchange since 1995, it generated 154,28 million Euro in sales in FY 2016/2017; with about 1.540 employees Wolford is a leading global fashion brand for high quality sustainable legwear, lingerie and bodywear. Wolford designs and manufactures its products exclusively in Europe (Austria and Slovenia) meeting the highest environmental standards in the textile industry as underscored by the on going partnership with bluesign Technologies AG.