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Wolford H1 revenues rise, echoes positive outlook

By Prachi Singh

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Wolford AG has said that the company registered a substantial increase in revenues in all segments in the first half of the 2015/16 financial year from May 1, 2015 to October 31, 2015, against the backdrop of a challenging economic and political environment. It also gained momentum in its operating business by increasing second-quarter EBIT in a year-on-year comparison.

Wolford reports significant revenue growth

In the first six months of the current financial year, revenues increased 9.1 percent to 79.24 million euros (86.81 million dollars), which the company attributed to positive currency effects of the US dollar and British pound. Revenue growth was 3.1percent when adjusted for currency effects.

The half-year operating results (EBIT) of -0.28 million euros (0.30 million dollars) were below the prior-year figure of 3.17 million euros (3.47 million dollars). However, when adjusted to take account of all one-off effects, EBIT in the first half rose by 2.63 million euros (2.88 million dollars). Earnings after tax totalled -0.90 million euros (0.98 million dollars) compared to 1.38 million euros (1.51 million dollars) in the previous year. Earnings per share equalled -0.18 euro (0.20 dollar), down from 0.28 euro (0.31 dollar) in the first half of 2014/15.

Retail and online businesses drive growth

Wolford considerably strengthened its international retail team in the first half-year. The expansion of operations and hiring of new staff was also reflected in the revenue development of the retail business.

Revenues generated by Wolford-owned retail stores rose by more than 7 percent in both absolute terms and on a like-for-like basis. The online business witnessed a 63.9 percent increase in revenues. The wholesale segment reported growth of 5.2 percent.

From a regional perspective, Wolford's core sales markets also showed a fundamentally positive picture. Wolford generated double-digit revenue increases in the USA, Great Britain and on the Asian growth market. In spite of the difficult economic conditions prevailing in Europe, Wolford still reported a rise in revenues in Belgium, Netherlands, France and southern European markets, whereas Austria and Germany were particularly impacted by the long heat wave and witnessed a slight drop in revenues.

Wolford