Ahlers H1 sales fall 5 percent

REPORT_ For the first six months of the fiscal year 2012-2013, Ahlers total sales fell by 5 percent

but retail sales grew by 5 percent. Premium segment sales revenues increased by 3 percent. The premium segment’s contribution to total sales revenues climbed to 64 percent compared to 58 percent the previous year. The gross profit margin increased moderately from 48.8 percent to 50 percent in the reporting period due to higher contributions by the premium brands and the retail segment. The equity ratio stood at 60.4 percent compared to 62.5 percent the previous year.

Due to the slightly earlier delivery of the winter 2013 merchandise, inventories and trade liabilities exceeded the prior year levels by more or less equal measure and therefore had no impact on liquidity. As far as the segment results are concerned, increased expenses for the company’s own retail operations and e-commerce activities weighed on the premium segment’s bottom line.

In the jeans and workwear segment, lower sales revenues led to reduced earnings. In the men’s and sportswear segment, the growing losses of Gin Tonic were contained. In the second half of the year, the losses should decline due to a further reduction in costs. Since the end of the last fiscal year, share prices, including the dividend, have also picked up. The prices of the common shares and the preferred shares were up by 9 percent and 2 percent respectively.

Ahlers AG is based in Germany. It is a fashion manufacturer specialising in menswear and produces fashion under several brands. Established in 1919, it generates more than 60 percent of its sales revenues from premium brands. The company expects sales for the full year 2013 to be probably down on the previous year. The company expects earnings in the second half of 2013 to be much higher than in the same period of 2012. While the first half of 2012/13 was disappointing, the preconditions for a good second half-year 2013 are in place.