Tom Tailor reaffirms FY15 forecast, expects moderate sales growth

Tom Tailor Management Board has confirmed its sales forecast and expects to see moderate growth in net sales, in the range of 945 million euros (1,068.9 million dollars) and 955 million euros (1,080 million dollars) after reporting 932 million euros (1,054.1 million dollars) in the previous year.

The company also expects recurring EBITDA to be between 75 million euros (84.8 million dollars) to 80 million euros (90.4 million dollars). This expected result leads to a recurring EBITDA margin, which is below the previous year’s margin of 9.4 percent originally adopted. This development, according to the company is due to initial difficulties with the implementation of the new logistics warehouse causing partial delays in goods delivery in the third quarter. In addition, due to poor market conditions in August, the company had to announce heavy promotions, which negatively affected both retail segments, especially Bonita.

The Group will continue to accelerate verticalisation within the company, which began in April 2015 to strengthen its competitiveness and thus increase its sales productivity and profitability in the future. “We know that the textile market is difficult. However, we are confident that we will sustain our long-lasting market position and gain additional market share. This will be driven by our strategy to accelerate the verticalization and strengthen our online presence. In parallel we will optimize and further streamline our cost structure," says Dieter Holzer, CEO of Tom Tailor Holding.