- Prachi Singh |
The Tom Tailor Group recorded an overall successful fiscal year in 2014 despite difficult market environment. According to preliminary figures, the company increased sales by about 3 percent to around 932 million euros (1,055.8 million dollars). The recurring EBITDA rose by more than 10 percent compared to the previous year. For the first time following the acquisition of Bonita in 2012, the Group generated a positive net income again.
“We have developed quite successfully in a very challenging market environment. The Tom Tailor Group has continued to grow and returned to a positive net income in 2014. Both brands contributed to the increase in earnings,” said Dieter Holzer, Chief Executive Officer of Tom Tailor Holding.
The company’s wholesale segment continued its growth course in 2014 and increased sales by around 9 percent driven by 417 new shop-in-shops, 9 new franchise stores as well as 1,005 additional multi-label partners. Furthermore, activities with existing and new international online business partners were significantly expanded. The segment increased its gross profit margin compared to the previous year.
During the fiscal year, retail segment increased sales by approximately 8 percent through its 382 Tom Tailor Stores and E-commerce. Tom Tailor Retail grew sales by 1.4 percent on a like-for-like basis and once again outperformed the German textile industry, which finished the year 2014 with a decrease of 3 percent. During the fourth quarter 2014, the company’s sales increased by 2.1 percent on a like-for-like basis.
In 2014, the Bonita brand succeeded in making a positive contribution to Group earnings, whereas sales fell back by around 7 percent. On a like-for-like basis, sales in 2014 decreased as expected by 9.9 percent. On account of the adjusting promotional sales in the fourth quarter of 2013, like-for-like sales of Bonita decreased by 13.1 percent in the fourth quarter of 2014. However, the gross profit margin improved significantly by more than 5.5 percentage points.