Wolford AG — Earnings Release 2012

Sep 14, 2012

News Details

Ad-hoc | 14 September 2012 08:00

Wolford AG: Sales and earnings in the first quarter of 2012/13

Wolford AG / Key word(s): Quarter Results

14.09.2012 08:00

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Press Information
Sales and earnings in the first quarter of 2012/13

Wolford Group Increases Sales in the First Quarter of 2012/13

• Sales up 4.1 percent to EUR 33.1 million

• Operating expenses for new store openings impact earnings

• Equity capital base at a constantly high level

• Dividend of EUR 0.40 per share approved for the 2011/12 fiscal year

• Share of monobrand distribution further increased to 66.6 percent

Vienna/Bregenz, September 14, 2012. Wolford Aktiengesellschaft, a publicly
listed company on the Vienna Stock Exchange, seamlessly continued its
positive sales development in the third and fourth quarters of the previous
year during the first quarter of the current fiscal year. The Austrian
luxury brand succeeded in increasing sales in the first three months of the
2012/13 fiscal year (May 1 - July 31, 2012) by 4.1 percent from the
comparable prior-year period to EUR 33.1 million. This development can be
attributed to the targeted expansion of Wolford's international
distribution network, amongst other factors. The first quarter is
traditionally the weakest of all quarterly sales periods due to the
seasonality of business development and simultaneously involves
disproportionally high costs in relation to sales. For this reason,
Wolford's first-quarter earnings indicators are generally negative, also in
growth years. This applies as well to the first quarter of the 2012/13
fiscal year, in which earnings were also impacted by costs relating to the
opening of new locations.

Sales increase - earnings impacted by boutique openings
The Wolford Group achieved a further rise in sales of 4.1 percent in the
first three months of the current fiscal year to EUR 33.1 million (Q1
2011/12: EUR 31.8 million) based on a strong performance in the first
quarter of the previous 2011/12 fiscal year, which was characterized by
sales growth of 6.5 percent in a quarterly comparison. Wolford's
first-quarter earnings indicators were always negative up until now due to
the traditionally disproportionally high costs in relation to sales, which
in turn is related to the seasonality of first-quarter business
development. The opening of new boutiques in the second half of the 2011/12
fiscal year featuring correspondingly necessary start-up periods
intensified this effect in the first quarter of 2012/13. As a consequence,
EBITDA reported by the Wolford Group amounted to EUR -1.3 million in the
first quarter of 2012/13 (Q1 2011/12: EUR 0.6 million), and EBIT totaled
EUR -3.3 million (Q1 2011/12: EUR -1.3 million). The net result for the
period was EUR -3.2 million (Q1 2011/12: EUR -1.8 million).

Solid equity capital base
As at the reporting date of July 31, 2012, shareholders' equity of the
Wolford Group amounted to EUR 80.9 million, slightly below the comparable
figure of the previous year (July 31, 2011: EUR 81.6 million). The
equity-to-asset ratio at the reporting date was 53.0 percent, thus
maintaining the high prior-year level (July 31, 2011: 53.2 percent). Net
debt in the first three months of 2012/13 totaled EUR 26.6 million (July
31, 2011: EUR 25.6 million), corresponding to a debt/equity ratio (gearing)
of 32.9 percent (July 31, 2011: 31.4 percent).

Dividend of EUR 0.40 per share for the 2011/12 fiscal year
At the Annual General Meeting held on September 11, 2012, shareholders of
Wolford Aktiengesellschaft resolved to distribute a dividend of EUR 0.40
for the past 2011/12 fiscal year for each share entitled to a dividend, the
same amount as in the previous year. The dividend payment date was set for
September 27, 2012.

Sales growth with Wolford's proprietary stores - monobrand distribution
increased to 66.6 percent
As in previous quarters, Wolford's proprietary stores also showed a
particularly good development in the reporting period. Accordingly, the
Wolford Group achieved a sales increase of 13.3 percent with its own
boutiques, shop-in-shops, factory outlets and e-commerce. Thus the share of
total sales generated by retail in the first quarter of 2012/13 climbed to
54.7 percent (Q1 2011/12: 50.9 percent). This rise was partly due to the
expansion of Wolford's own distribution network. However, the Wolford Group
also achieved a gratifying sales growth of 7.4 percent with its own points
of sale on a like-for-like basis. The online business also made an
important contribution to this strong rise in sales, generating a
significant sales increase compared to the prior-year period.

On balance, Wolford-controlled distribution channels i.e. those points of
sale which exclusively offer Wolford products (own and partner-operated
boutiques, factory outlets, concession shop-in-shops and e-commerce)
accounted for 66.6 percent of total sales in the first quarter of 2012/13
(Q1 2011/12: 62.4 percent).

In the first quarter of 2012/13 the wholesale business developed
satisfactorily, particularly with partner boutiques and department stores.
Multi-brand retailers comprised the only distribution channel where sales
fell compared to the prior-year period.

From a regional perspective, a positive picture generally emerged from
Wolford's core geographic markets. The good sales development could be
continued compared to the prior-year period, with the USA, France, Belgium
and UK showing a particularly dynamic development characterized by
significant growth in the double-digit percentage range.

Outlook
In the future Wolford will continue to expand its global monobrand
distribution network, both via its own as well as partner-operated points
of sale, in order to further strengthen the international presence of the
Wolford brand. In this regard, the Wolford Group will not only concentrate
on its core markets in Europe and Northern America but increasingly on the
Greater China region. From today's perspective the Executive Board of the
Wolford Group expects to generate further growth in the 2012/13 fiscal
year.

Overview of sales and financial data for the first quarter of the 2012/13
fiscal year
(May 1 - July 31, 2012)

in TEUR Q1 Q1 Change
2012/13 2011/12 absolute
Sales 33,074 31,777 1,297
EBITDA (1,292) 649 (1,941)
EBIT (3,320) (1,298) (2,022)
Net result for the period (3,242) (1,753) (1,489)
Net debt 26,594 25,576 1,018
Debt / equity ratio in % (gearing) 32.9% 31.4% 1.5
Equity-to-assets ratio 53.0% 53.2% (0.2)
Number of employees at period-end (in full- 1,618 1,677 (59)
time equivalents incl. apprentices)

The interim financial report on Q1 2012/13 fiscal year is available on
www.wolford.com, Investor Relations.

Contact:
Holger Dahmen (Chief Executive Officer)
investor@wolford.com
Wolford Aktiengesellschaft, Wolfordstrasse 1, A 6901 Bregenz
+43 (0) 5574 690-1268
www.wolford.com

About Wolford Aktiengesellschaft
Wolford Aktiengesellschaft headquartered in Bregenz on Lake Constance
operates 15 subsidiaries and markets its own products in the Legwear,
Ready-to-wear, Lingerie, Swimwear and Accessories segments in 68 countries
via more than 260 monobrand stores (own and partner-operated), about 3,000
trading partners and online. The Austrian company, which has been publicly
listed on the Vienna Stock Exchange since 1995, generated sales of EUR
154.1 million in the 2011/12 fiscal year (May 1, 2011 - April 30, 2012),
and has about 1,600 employees. Since its founding in the year 1950, Wolford
has evolved from a local producer of hosiery to a global luxury fashion
brand.

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Language: English
Company: Wolford AG
Wolfordstraße 1
6901 Bregenz
Austria
Phone: +43/5574/6901268
Fax: +43/5574/6901219
E-mail: investor@wolford.com
Internet: www.wolford.com
ISIN: AT0000834007
WKN: 83400
Indices: ATX
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in
Frankfurt; Wien (Amtlicher Handel / Official Market)

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