Ahlers sales decline in Q2, cuts full year forecast

In a preliminary results announcement for its second quarter and first half, Ahlers Ag said that it witnessed an unexpected decline in revenues in the second quarter due to cancellation of orders from Eastern European customers and weak stock sales of suits and sportswear. Total first-half revenues were down by 5.5 percent to 110.8 million euros (128.7 million dollars) on the previous year, while EBITDA fell from 4.2 million euros (4.8 million dollars) to 2.7 million euros (3.1 million dollars), down 36 percent.

Consequently, the management board has downgraded the revenue and earnings forecast for the full year 2017/18 and now projects declining revenues slightly above the trend of the first six months. Consolidated earnings, the company added, are expected to come in close to break-even point.

Ahlers sees decline in Q2 and H1 revenues

The company further said that as Eastern European customers failed to make advance payments, Ahlers was forced to cancel orders in the second quarter of 2018. Moreover, stock sales of suits and outdoor jackets in Germany declined sharply, while the denim business of Pierre Cardin and Pioneer Authentic Jeans continued to grow against this trend but failed to offset the above-mentioned decline.

In view of later deliveries in the first quarter and larger consignment warehouse spaces, the management board had earlier projected higher revenues for the second quarter. Although the balance of operating expenses was reduced in the second quarter due to cost-saving measures, the results for the first six months of the fiscal year were nevertheless down on the previous year. Consolidated earnings declined from 0.9 million euros (1 million dollars) to 0.4 million euros (0.46 million dollars).

With suit sales expected to remain weak, the board projects for the second half of the year a declining but slightly better trend than in the first six months.

Picture credit:Ahlers Group