Tom Tailor sales increase 3.5 percent in the first nine months

REPORT_ The Tom Tailor performed well in the first nine months of 2014 and further increased its sales and profitability. The Group increased sales by 3.5 percent to 679.1 million euros (849.7 million dollars) from January to September 2014. The main growth drivers, according to the company, were the wholesale activities of the Tom Tailor brand which achieved a strong sales increase of 9.9 percent.

The recurring EBITDA rose across the Group by 20.6 percent during the first nine months. The reported EBITDA improved significantly and increased by 50.4 percent. During the year under review, the Group achieved a net income for the period amounting to 1.8 million euros (2.2 million dollars) for the first time since two years.

“The Tom Tailor Group has determinedly continued its growth path with the focus on profitability and also performed well during a sector-wide difficult summer quarter. We succeeded in further increasing profitability and achieved a positive net income for the Group. We are particularly pleased that Bonita has also contributed to this positive development for the first time. This confirms our strategy of continuing to focus on the qualitative improvement in sales at Bonita,” said Dieter Holzer, Chief Executive Officer of Tom Tailor Holding.

The sales growth in the first nine months was mainly driven by the Tom Tailor brand. The wholesale and retail activities posted an increase in sales of 9 percent during the year under review. Tom Tailor retail increased sales with the Tom Tailor stores and E-commerce by 7.8 percent. On a like-for-like basis, sales went up by 1.2 percent. Sales on a like-for-like basis fell by 8.8 percent in line with expectations.

Wholesale sales increased by 9.9 percent from January to September (previous year: EUR 226.9 million) and even advanced by 12.7 percent during the summer quarter. Since the beginning of the year, Tom Tailor has increased the number of shop-in-shops by 316 to 2,585 and the number of franchise stores by two to 199. Gross profit margin at Bonita increases by 4.9 percentage points. The gross profit margin of the Group improved by 2.1 percentage points to 56.8 percent during the first nine months.

The Management Board is now expecting Group sales of between 925 million euros and 935 million euros (1,157.3 million dollars to 1,168.9 million dollars) and a recurring EBITDA margin of 9.2 percent to 9.7 percent in the fourth quarter.