Wolford AG — Earnings Release 2004

Nov 8, 2004

News Details

Ad-hoc | 8 November 2004 08:31

Lower consumer demand in the second quarter impacts Wolford’s sales

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Lower consumer demand in the second quarter impacts Wolford’s sales Sales in first half of 2004/05 declined by 1.6 percent year-on-year – Continuing growth for Wolford’s own retail outlets, at 0.9 percent Bregenz, Austria, November 8, 2004 The sluggishness of consumer expenditure in Wolford’s two most important markets, Germany and the U.S., adversely affected sales in the first half of the year: The decline in U.S. consumption that set in during the second quarter, detracted from Wolford’s upswing. Wolford’s U.S. sales fell in the second quarter, leading to a year-on-year sales reduction of 7 percent in euros during the first half of the fiscal year (the months from May through October). The decrease on a U.S.-dollar basis was 1 percent. By contrast, in Germany the sales reduction of 7 percent in the second quarter represented a significant improvement on the first three months, when sales fell by 16 percent. However, the positive trend in sales at Wolford’s own retail outlets in Germany was unable to compensate for the negative pattern in department stores and multibrand retailers in this market. As a result, overall sales in Germany were down 11 percent in the first half of the fiscal year. Sales in Switzerland followed a similar pattern, and there was a decrease in the Far East as a consequence of the change in the distribution structure. All other major Wolford markets, however, saw a positive trend in the first six months. In the U.K., Wolford boosted sales by 14 percent in local currency, 19 percent in euros, compared to the previous year. In the Eastern European (CEE) countries as well, revenues were up 14 percent, and Italy, the Netherlands and Scandinavia also registered double-digit growth. Austria, one of the three most important markets, increased sales by 6 percent and France also had gratifying growth. The Wolford Group achieved sales of EUR 56.0 million in the first half of the year, 1.6 percent less than in the corresponding period in the previous year. The U.S. dollar’s depreciation contributed significantly to the reduction in consolidated sales. In fact, 36 percent of the Group-level sales decrease was attributable to currency fluctuations. On a constant-currency basis, the decline in sales during the reporting period therefore amounted to only 1 percent. The trend toward elegant legwear, Wolford’s core business, continued in the first half of the fiscal year and again accounts for 50 percent of brand sales. In the Bodywear product group, currently representing 37 percent of sales, the trend to classic year-round styles continues. The full results for the first half of the 2004/05 fiscal year will be published December 14, 2004 Contacts: Holger Dahmen, Chief Executive Officer Peter Simma, Chief Financial Officer investor@wolford.com Wolford AG, Wolfordstrasse 1, A-6901 Bregenz, Austria Tel. +43 (0) 5574 690 0 http://www.wolford.com end of ad-hoc-announcement (c)DGAP 08.11.2004 ——————————————————————————– WKN: 083400; ISIN: AT0000834007; Index: ATX Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin-Bremen, Frankfurt, Hamburg, München und Stuttgart 080831 Nov 04