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Wolford FY13 revenues decline 0.4 percent

By FashionUnited

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Fashion

REPORT_ Wolford has reported that its results for the financial year ended April 30, 2014, are in line with the guidance. Currency-adjusted revenues in the past financial year could have increased by about a percent to 157.90 million euros (213.51 million dollars) compared to 156.47 million euros (211.57

million dollars) in 2012/13. Taking account of the negative currency effects of about 2 million euros (2.7 million dollars), Group revenues declined by 0.4 percent to 155.87 million euros (210.74 million dollars).

EBITDA adjusted amounted to 7.11 million euros (9.61 million dollars) and EBIT adjusted totaled below 0.97 million euros (1.31 million dollars). In spite of non-recurring expenses, earnings after tax amounted to below 2.81 million euros (3.80 million dollars) matching the previous year’s level.

“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.

Wolford