Wolford AG — Earnings Release 2004

May 10, 2004

News Details

Ad-hoc | 10 May 2004 08:30

Wolford reaches prior-year sales in fourth quarter on constant currency basis

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Wolford reaches prior-year sales in fourth quarter on constant currency basis For the fourth quarter of the 2003/04 fiscal year ended 30 April 2004, Wolford recorded preliminary sales of EUR 28.7 million. On a currency-adjusted basis, after a significant contraction that lasted into the third quarter, the company matched the year-earlier sales level in the fourth quarter. Sales for the year in the Group’s reporting currency eased from EUR 128.8 million in fiscal 2002/03 to EUR 119.2 million, or by 7.4%. The welcome trend in the past three months mitigated the full-year decline by partly offsetting the stronger decrease seen earlier in the fiscal year. About 50% of the sales reduction in the year as a whole was due to exchange rate movements; 28% represented the closing of unprofitable proprietary locations. Especially in the boutique channel, Wolford rigorously continued the qualitative improvement of the distribution structure. In the fiscal year 2003/04 the Wolford-owned retail outlets generated an all- time-high share of 26% of Group sales. On a constant currency, same-store basis, sales through this distribution channel grew 12%, with increases in all markets. This growth documents the strong positioning of the Wolford brand, especially in the retail segment. The sales trend by region shows persistent strong gains in the U.S. growth market, with an increase of 20% in local currency (or 1% in euros). In Germany the consolidation among specialist apparel retailers continues, but despite the overall two-figure sales decrease in this market, here as well the Wolford-owned stores achieved slight growth. In the new fiscal year too, the management is expanding the growth drivers, with a primary focus on further strengthening the core of the brand. Another goal is the focused targeting of the key segments; thus, the retail organization was rearranged at the beginning of the new fiscal year. And finally, the company expects a significant impetus from the multi-year licence acquired in March for the production and distribution of the new Giorgio Armani hosiery and bodywear line. The first, fall/winter 2004/05 collection of these Armani items, which has been received with great enthusiasm by the fashion industry, retailers and the media, will translate into sales and earnings from the summer of 2004. Contact: 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, www.wolford.com The annual financial statements will be released on July 16, 2004 in Vienna. end of ad-hoc-announcement (c)DGAP 10.05.2004 ——————————————————————————– WKN: 083400; ISIN: AT0000834007; Index: ATX Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin-Bremen, Frankfurt, Hamburg, München und Stuttgart 100830 Mai 04