Wolford AG — Earnings Release 2006

Nov 8, 2006

News Details

Ad-hoc | 8 November 2006 08:30

Wolford AG: Sales in the first half of the 2006/07 fiscal year

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Press Release Sales in the first half of the 2006/07 fiscal year Wolford grows sales by 13.1 percent in H1 2006/07 · Second-quarter sales up 18.3 percent · New store concept now in place at 66 locations · Legwear and ready-to-wear deliver double-digit sales growth · Strong demand for spring/summer 2007 collection Bregenz, Austria, November 8, 2006 Continuing the first quarter’s healthy trend, the Wolford Group grew its sales by 18.3 percent to EUR 38.6 million in the second quarter of the 2006/07 fiscal year. In the first six months, from May 1 to October 31, 2006, the Austrian luxury label thus increased cumulative sales by 13.1 percent to EUR 64.7 million, compared to EUR 57.3 million in the corresponding period one year earlier. Wolford delivered a positive performance in almost all markets and strategic distribution channels. To Wolford CEO Holger Dahmen, this good showing resulted from more than two years of consistent focus on the strategic realignment of the Wolford product portfolio, as well as from intensified brand communication. Comments Dahmen: ‘Besides numerous measures to boost the efficiency of sales and distribution, it is especially our clearly focused investments at the point of sale that have driven this sustained positive trend. The careful broadening of the product range particularly in ready-to-wear, our new boutique design and the judicious strengthening of our distribution are now bearing fruit. Especially the new store concept has been very positively perceived by the consumers; this is reflected in increased sales at the remodeled locations and has led to the acceleration in the concept’s international roll-out.’ Double-digit growth rates in most markets In the first six months of this fiscal year, Wolford achieved double-digit growth rates in the majority of markets. The Group was particularly successful in the United States, where sales jumped 35 percent. Similarly, Wolford raised sales revenues substantially in the U.K (by 22 percent), Central and Eastern Europe (also 22 percent), the Netherlands (19 percent), Germany (16 percent) and Italy (11 percent). With an increase of 8 percent in the Scandinavian countries, 5 percent in the Austrian home market, 4 percent in France and 1 percent in Spain, the other European markets too were on the rise. In Switzerland a trend reversal that began to emerge in the second quarter created a small sales increase for the first half of the fiscal year. Wolford boutiques are growth drivers The Wolford-owned stores (proprietary boutiques, shop-in-shops and factory outlets) generated combined sales growth of 31.0 percent compared to the first six months of the prior fiscal year. On a like-for-like basis, growth in this distribution channel was 12.5 percent. With a rise of 30.7 percent in sales, the Wolford-owned boutiques in particular made a key contribution to overall growth. Wolford’s sales with the partner-operated boutiques as well were augmented by a notable 13.6 percent. All Wolford boutiques combined (both the Group’s own and partner-operated ones) thus rang in revenue growth of 23.6 percent. In total at the end of October 2006, the Wolford Group had 221 boutiques, of which 77 were proprietary and 144 partner-operated. Business with specialist multibrand retailers remained subdued in the first six months, leading to a corresponding sales decline in this channel from the year-ago period. With department stores, Wolford achieved highly attractive sales growth of 23.5 percent. Significant sales gains at outlets that feature new store design The success of the new store concept for Wolford boutiques and for shop-in-shops at department stores was reflected in the sustained good revenue growth at most locations featuring the new look. They largely attained significant rates of increase in the first six months of the fiscal year. By October 31, 2006 the new design had been implemented at a total of 66 newly opened or made-over outlets, including 27 in the most recent quarter. The latest examples of the fresh concept are the new boutiques opened in top locations in Vienna, Dresden, Hamburg, Moscow and Sydney. Legwear and ready-to-wear produce sales growth in double digits Looking at sales by product group, legwear and ready-to-wear (the latter comprises all outerwear) showed impressive revenue growth in the double digits. Buoyed by the current fashion preference for skirts with boots and opaque stockings or leggings, brand sales in legwear were up 19 percent. Even stronger growth was recorded in the ready-to-wear lines, where Wolford saw sales expand by 25 percent. The Wolford high-quality sweaters, knit ensembles, pants, skirts and textile accessories are very well received by retailers. High advance orders for the spring/summer 2007 collection An extremely satisfactory trend is unfolding in pre-orders for the spring/summer 2007 collection. In particular, here too, the new ready-to-wear products and fashionable legwear items are proving highly popular. Outlook In the third quarter Wolford will continue to roll out the new store concept, with plans both to add new points of sale and redesign existing ones. Thanks to the good order situation, the management continues to expect sales for this fiscal year to grow to at least EUR 128 million. The sales results quoted are preliminary. The final sales data, and the earnings, for the first half of the 2006/07 fiscal year will be published on December 15, 2006. Contacts: Holger Dahmen, Chief Executive Officer Peter Simma, Deputy Chief Executive Officer Investor@wolford.com Wolford AG, Wolfordstraße 1, A-6901 Bregenz, Austria +43 (0) 5574/690-0 www.wolford.com (c)DGAP 08.11.2006 ————————————————————————— Language: English Issuer: Wolford AG Wolfordstraße 1 6901 Bregenz Österreich Phone: +43/5574/6907434 Fax: +43/5574/6907440 E-mail: investor@wolford.com WWW: www.wolford.com ISIN: AT0000834007 WKN: 83400 Indices: ATX Listed: Amtlicher Markt in Wien; Freiverkehr in Berlin-Bremen, Stuttgart, München; Open Market in Frankfurt End of News DGAP News-Service —————————————————————————