Wolford FY13 revenues decline 0.4 percent
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“Wolford is striving to achieve the operating turnaround in the current financial year 2014/15. We are determinedly implementing all strategic refocusing measures for this purpose. The product portfolio will be gradually adapted and the collection statement will be sharpened, marketing activities are realigned and intensified, and we are continually optimizing our distribution,” said Axel Dreher, Speaker of the Management Board of Wolford.
The company’s own retail business continued to generate growth in 2013/14. Wolford-owned points of sale achieved a revenue increase of 5 percent, and the online business also reported a 23 percent rise in revenues. In contrast, revenues fell by 8 percent in the wholesale business, i.e. the business with partner-operated boutiques, department stores and multi-brand retailers.
The USA, Wolford’s largest single market accounting for 17 percent of total revenues, generated growth both in the Group and in the local currency. Revenues also increased in the European markets of Italy, Spain, Belgium, Great Britain and Austria. In contrast, revenues in the core markets of Germany and France decreased year-on-year, mainly as a result of the decline in the wholesale business. Wolford achieved substantial double-digit revenue growth in Greater China and the Gulf Region.
The focal points of the strategic refocusing launched in December 2013 encompass the adaptation of the product portfolio, the sharpening of the collection statement and the focus on the company’s core business, the realignment of communication in all its facets, the focus on markets with the highest cost/benefit ratio and the global optimization of distribution, including a re-launch of the wholesale business and the strengthening of the online business. Wolford’s goal for the 2014/15 financial year is to achieve the operating turnaround. Since a book profit of about 7.4 million euros (10 million dollars) was generated in the first quarter from the sale of non-core land and a lease option, Wolford expects to achieve the desired earnings target.