Wolford AG — Earnings Release 2006

Nov 8, 2005

News Details

Ad-hoc | 8 November 2005 09:01

Ad hoc announcement

Sales in the first half of the 2005/06 fiscal year Wolford AG: Wolford’s H1 sales grow 2.2 percent Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— – Encouraging sales trend from first quarter continues – Sales at Wolford-owned outlets up 15.1 percent – New store design very well received by market Bregenz, Austria, November 8, 2005 The Wolford Group recorded sales growth in the first half of the 2005/06 fiscal year. Revenue in the period from May 1 to October 31, 2005 was EUR 57.2 million, up 2.2 percent from the first half of the previous year. Growth before currency effects was 2.6 percent. The main driver of this growth was the sustained benign course of business with the partner-operated boutiques and at Wolford’s own boutiques. The latter distribution channel increased sales by 18.8 percent compared to the year- earlier period. In the Retail segment as a whole (boutiques, shop-in-shops and factory outlets), sales expanded by 15.1 percent. The reasons for this included the new opening of Wolford-owned boutiques and the acquisition of a number of Wolford locations previously operated by partners. The proportion of total revenues that was generated by the Wolford- owned points of sale thus rose from 26.3 percent in the first half of 2004/05 to 29.5 percent in the reporting period. Continuing sales growth was generated in Wolford’s currently largest market of Germany (up 5 percent year-over-year) and in the Austrian home market (3 percent). Sales were pushed up especially significantly in Spain (by 28 percent), Scandinavia (21 percent), Eastern Europe (12 percent), Switzerland (7 percent) and Italy (6 percent). In the first six months of the year, sales were down in Britain and the United States; however, in these markets as well, sales via the strategic distribution channel of Wolford boutiques expanded. Sales in the multibrand (specialist retailer) and department store channels did not keep pace with the growth at the Wolford boutiques. Revenues from the factory outlets were only marginally lower than twelve months earlier. The private-label business remained on the rise, with double-digit sales growth in the first half of the year compared to the prior-year period. There were 227 Wolford boutiques as of October 31. In the past several months, additional boutiques were opened in top locations, including in cities such as Rome, Lille, Breda, Cologne, Zurich and Salzburg. The launch of the new store design in new and some existing outlets has met with a very positive reception from shoppers. While the Legwear product group achieved a small increase in sales in the first half of the year, Bodywear in particular performed very well. The Executive Board expects a continuing positive trend and remains confident for the business performance going forward. The target for the full fiscal year remains an increase in sales to at least EUR 120 million and an accompanying improvement in profitability at a rate exceeding the pace of sales growth. The sales results reported here are preliminary. The final sales data and full financial results for the first half of the 2005/06 fiscal year will be published on December 16, 2005. Contacts: Holger Dahmen, Chief Executive Officer Peter Simma, Chief Financial Officer investor@wolford.com , http://www.wolford.com Wolford AG, Wolfordstraße 1, A-6901 Bregenz, Austria Tel.:+43 (0) 5574/690 0 Wolford AG Wolfordstraße 1 6901 Bregenz Austria ISIN: AT0000834007 WKN: 083400 Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin-Bremen, Frankfurt, Hamburg, München und Stuttgart End of ad hoc announcement (c)DGAP 08.11.2005