Wolford AG — Earnings Release 2006

Aug 9, 2006

News Details

Ad-hoc | 9 August 2006 08:30

Wolford AG: Results for First Quarter 2006/07

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Wolford: continued growth in sales in the first quarter of 2006/07 · Sales up 6.1 percent · Wolford owned stores increase sales by 25.3 percent · Double-digit rise in pre-orders for autumn/winter collection Bregenz, August 9, 2006 Following a successful financial year 2005/06, in which sales were up 4.4 percent and EBITDA more than doubled, the Wolford Group continued to build on its successful turnaround in the first quarter of 2006/07. For the three months to July 31, 2006, the Austrian luxury brand posted a 6.1 percent rise in sales to EUR 26.1m, compared with EUR 24.6m a year earlier. Wolford’s performance was positive in virtually all its markets and strategic distribution channels. Holger Dahmen, Chairman of Wolford’s Executive Board, attributes the increase to the decision to clearly position the brand in the luxury segment of the market: “For two years we have been working systematically to reposition Wolford products, with an increased emphasis on brand communications. At the same time, we have greatly improved distribution systems and cost structures, which has made a significant contribution to our success. The strategic decision to gradually add ready-to-wear outerwear to the Wolford portfolio was extremely well received by customers, and the majority of growth was accounted for by this reorientation. Also we have successfully relaunched the Wolford brand image, starting from our core markets. The new boutique design, which has already been introduced in numerous stores, has played a major part in this success and conveys the revised brand message visually.” Sales increases in the majority of markets In the first quarter, Wolford recorded double-digit growth in the Netherlands (up 24 percent), the USA (up 18 percent), Scandinavia (up 18 percent), Spain (up 17 percent), Italy (up 14 percent) Eastern Europe (up 11 percent) and France (up 10 percent). There was also growth in Germany (up 7 percent), Wolford’s largest market, and in its home market, Austria (up 3 percent). First quarter sales were also slightly up on the same period last year in the UK (2 percent). Revenues were down 9 percent in Switzerland – this was chiefly the result of below average sales to multibrand retailers. Growth motors: boutiques and department stores The fast-paced growth of Wolford boutiques continued into the first quarter of 2006/07. Together with the points of sales in department stores, which increased sales by 16.1 percent, the growth drivers in the first quarter were the boutiques. The Wolford boutiques (both Wolford’s own and partner-operated stores) increased sales by 18.4 percent, and continue to make the largest contribution to overall sales, with double-digit growth in most markets. The performance of the multibrand retail business remained muted, and sales by this distribution channel were down on the same period last year. With growth rates in double figures in the majority of markets the Wolford Group’s performance with its own stores was highly successful. Wolford-operated boutiques, shop-in-shops and factory outlets recorded a combined increase in sales of 25.3 percent compared with the previous year’s first quarter. Comparing like with like (i.e., factoring out new stores), first quarter sales were up 8.4 percent. New store concept delivers significant sales increase The success of the new store concept for Wolford boutiques and shop-in-shops in department and other stores is reflected in the ongoing satisfactory performance of the majority of points of sales featuring the new design, most of which recorded a significant upturn in sales in the first quarter. By the end of first quarter 2006/07, a total of 39 stores had either opened in the new design or been refurbished; of these 16 were revamped during these last three months. The latest boutique to showcase the new design opened its doors at the end of July in the Kings Road, in London. Double-digit increase in pre-orders for the autumn/winter 2006/07 collection There was a highly satisfactory double-digit increase in pre-orders from our partners for the autumn/winter 2006/07 collection. Orders for legwear, bodywear, and the extended accessories product group were particularly promising. First pre-orders and feedback from the trade with respect to the spring/summer 2007 collection, the first launched under the leadership of creative director Antonio Berardi, were also extremely encouraging. Outlook Wolford will continue to implement the new store concept in the second quarter and is planning to open new boutiques and to revamp existing stores. In light of the strong start to financial 2006/07, the very encouraging order books for the autumn/winter collection and positive early feedback on the spring/summer collection, the Executive Board forecasts an increase in sales for the current financial year to at least EUR 128m. The sales figures quoted here are preliminary. The final sales and earnings figures for the first quarter of financial 2006/07 will be published on September 21, 2006. Contact: Holger Dahmen, Chairman of the Executive Board Peter Simma, Chief Financial Officer Investor@wolford.com Wolford AG, Wolfordstraße 1, A-6901 Bregenz, Austria +43 5574 690 0 www.wolford.com (c)DGAP 09.08.2006 ————————————————————————— 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 Wiener Börse; Freiverkehr in Berlin-Bremen, Stuttgart, München; Open Market in Frankfurt End of News DGAP News-Service —————————————————————————