Wolford AG — Earnings Release 2003

Aug 7, 2003

News Details

Ad-hoc | 7 August 2003 08:30

Wolford AG english

Wolford AG: First quarter brings slight reduction in sales Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Wolford AG: First quarter brings slight reduction in sales In the first quarter of this fiscal year – traditionally the weakest in the annual seasonal cycle – sales of the Wolford Group eased by 9.8% from EUR 26.1 million one year earlier to EUR 23.5 million. More than 40% of this decrease was attributable to shifts in exchange rates (largely the U.S. dollar and British pound). Another one-quarter of the sales decline was caused by the closure of unprofitable Wolford-owned boutiques. Moreover, the first quarter of the previous year included the market launch of “Individual Nature”; the large first shipments of this innovation at that time represented an exceptionally high share of sales and thus make the direct comparison to the year-earlier quarter less meaningful. On balance, Wolford dealt well with the still-difficult economic environment, particularly in comparison to peer companies in the luxury goods and fashion industries. As well, the growth in bodyCULTURE (up 11%) and Swimwear (up 7%) bears out the appropriateness of the diversification strategy. These gains partly offset the sales decrease in Legwear associated with, among other factors, the pronounced heat wave in much of Europe. The Wolford + Lagerfeld Gallery co-branding collection was extremely well-received by the market. “For a global brand like Wolford it is essential to be visible in the high-fashion segment”, says Wolford CEO Fritz Humer in explaining the company’s strategy of always being at the leading edge of market trends. The new Sporteve collection and the introduction of trendy “flash colors” likewise had a substantial positive impact. In the months ahead, the company expects significant sales potential from the market launch of completely new hosiery products, such as Magic Touch 12, and from the upgrades of existing classics in the Legwear and Bodywear product groups. The management is optimistic that Wolford will achieve the turnaround in sales in the middle of the 2003/04 fiscal year. In view of early signs of a recovery in the garment and luxury goods industries, the target for the full year remains to hold sales constant year-over-year. Contact: Fritz Humer, Chief Executive Officer, Tel. +43 (0) 5574/690 ext. 1250, http://www.wolford.com end of ad-hoc-announcement (c)DGAP 07.08.2003 ——————————————————————————– WKN: 083400; ISIN: AT0000834007; Index: ATX Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin-Bremen, Frankfurt, Hamburg, München und Stuttgart 070830 Aug 03