Wolford AG — Earnings Release 2007

Aug 9, 2007

News Details

Ad-hoc | 9 August 2007 08:30

Wolford AG: Sales in the First Quarter of 2007/08

Wolford AG / Development of Sales

Release of an Ad hoc announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---

Wolford’s sales growth continues in Q1 2007/08

· Sales up 16.9 percent
· Wolford-owned stores see sales increase by 35.0 percent
· Double-digit rise in advance orders for fall/winter 2007/08 collection

Bregenz, Austria, August 9, 2007

Following a successful fiscal year 2006/07 in which the lasting turnaround
was unequivocally confirmed with sales growth of 16.7 percent and an
expansion of 83.9 percent in net profit, the Wolford Group sustained its
momentum in the first quarter of 2007/08. For the three months to July 31,
2007, the Austrian luxury brand posted a 16.9 percent rise in sales to EUR
30.5 million, compared with EUR 26.1 million a year earlier. Wolford’s
performance was positive in virtually all markets and strategic
distribution channels.

Sales increases in all main markets

In the first quarter, Wolford recorded double-digit growth in the Central
and Eastern European countries (up 34 percent), the Netherlands (up 33
percent), the UK (up 28 percent), the Austrian home market (up 23 percent),
Switzerland (up 20 percent), the USA (up 20 percent), Germany (up 14
percent), Scandinavia (up 14 percent) and Spain (up 12 percent). Sales also
grew in Italy (up 9 percent) and France (up 2 percent). The Wolford Group
likewise showed continuing good growth in Asia and Oceania, where sales
more than doubled.

Wolford boutiques the key growth driver

The fast-paced growth of the Wolford boutiques persisted in the first
quarter of 2007/08. These boutiques (both the proprietary and
partner-operated stores) pushed up their sales by 30.2 percent and thus
continued to make the largest contribution to overall revenue, with
double-digit growth in most markets.

Wolford’s own stores performed exceedingly well, generating growth rates in
the double digits in all markets. These Wolford-operated boutiques,
shop-in-shops and factory outlets recorded a combined increase in sales of
35.0 percent compared with the previous year’s first quarter. On a
like-for-like basis (i.e., excluding new stores), first-quarter sales were
up 16.8 percent, also with double-digit sales gains in all markets.

In addition, the Wolford Group realized attractive growth in department
stores and with multi-brand retailers.

Double-digit increase in advance orders for fall/winter 2007/08 collection

Advance orders from Wholesale partners for the fall/winter 2007/08
collection – which partly were already delivered during the first quarter –
showed highly satisfactory double-digit growth. New orders for Legwear,
Ready-to-Wear and especially Lingerie were particularly promising. The
first advance orders and feedback from Wholesale partners with respect to
the spring/summer 2008 collection are also very encouraging.

Outlook

Focusing squarely on the methodical development and further entrenchment of
the Wolford brand in the upper premium market segment, Wolford will
continue to optimize the product mix (enlarged by Ready-to-Wear) and the
distribution system – in particular by the expansion and qualitative
improvement of the monobrand outlets through further consistent
implementation of the new store concept.

In light of the strong start to fiscal 2007/08, the very encouraging order
books for the fall/winter 2007/08 collection and positive early feedback on
the spring/summer 2008 collection, the Executive Board expects sales for
this fiscal year to grow to at least EUR 150 million and profit to improve
at a rate exceeding the pace of sales growth.

The sales results cited are preliminary. The final sales and other
financial results for the first quarter of the 2007/08 fiscal year will be
published on September 21, 2007.

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
DGAP 09.08.2007

---

Language: English
Issuer: Wolford AG
Wolfordstraße 1
6901 Bregenz
Österreich
Phone: +43/5574/6907434
Fax: +43/5574/6907440
E-mail: investor@wolford.com
Internet: www.wolford.com
ISIN: AT0000834007
WKN: 83400
Indices: ATX
Listed: Amtlicher Markt in Wien; Freiverkehr in Berlin, Stuttgart,
München; Open Market in Frankfurt

End of News DGAP News-Service

---