Tom Tailor preliminary net sales boost 44.1 percent in 2013

REPORT_ According to preliminary figures, in the fiscal year 2013, the

Tom Tailor Group boosted its sales by 44.1 percent to 907.2 million euros (1,249 million dollars) compared to 629.7 million euros (867 million dollars) in 2012 and reached the upper end of its 890 million euros (1,225.4 million dollars) to 910 million euros (1,252 million dollars) target range. This increase was driven by the strong growth of the Tom Tailor brands as well as the first-time full-year consolidation of the Bonita brand.

Hamburg headquartered company increased its recurring EBITDA by 16.1percent. Despite an increase in the recurring EBITDA of the Tom Tailor brands by 27.8 percent, the group’s recurring EBITDA remained below the targeted range of 85 million euros (117 million dollars) to 95 million euros (130.8 million dollars).

In order to further strengthen the product, design and brand expertise of Bonita and Bonita men, former Chief Product Officer of Tom Tailor Holding AG, Udo Greiser, was appointed sole Managing Director of Bonita GmbH effective February 1, 2014. He will resign from the Management Board of Tom Tailor Holding AG. Udo Greiser has extensive knowledge about the market and the company, and will fully concentrate on Bonita going forward, in order to systematically develop the brand.

As of March 1, 2014, Daniel Peterburs will succeed him as Management Board member for product development, procurement and licensing at Tom Tailor Holding AG. Daniel Peterburs studied textile and clothing management and has been with the Company since 2008, most recently as Division Head of the product line Tom Tailor Denim Male.

“We covered an incredible - and at times quite rocky - path in 2013, the year of integration. Our Tom Tailor brands have performed extremely well and continued un-intermittent on their profitable growth course. However, as for Bonita, we had to implement more substantial measures in the last quarter of the year so as to ensure that Bonita will be able to deliver the expected level of profitability in the next one to two years,” opine Dieter Holzer, Chairman of the Management Board (CEO) of Tom Tailor Holding AG.

The Tom Tailor brands increased their sales in the fiscal year by 17.0 percent, while its EBITDA margin rose by 80 basis points from 9.2 percent to 10.0 percent. Sales in the Tom Tailor retail segment went up by 23.5 percent. Key growth drivers were the expansion of the store network by 39 to 354 stores and the productivity increase in retail space. On a like-for-like basis, the segment’s sales in 2013 rose by 5.9 percent. Like-for-like growth in the fourth quarter came to 2.9 percent.

The Bonita brand, which is sold through 1,010 own retail stores as well as the in June launched e-shop, achieved sales of 350.7 million dollars (482.8 million dollars) in 2013. On a like-for-like basis, sales at Bonita decreased for the full year by 4.6 percent and in the fourth quarter of 2013 by 3.5 percent. The group’s gross profit margin grew from 52.9 percent to 55.1 percent year-on-year.

For the fiscal year 2014, group aims at sales of more than 950 million euros (1,307.5 million dollars) and a recurring EBITDA margin of around 10 percent.