EANS-News: Wolford Aktiengesellschaft Presentation of detailed figures for the first half year of 2021 (January - June)
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Mid Year Financial Report
Bregenz - August 27, 2021: The first 6 months of the fiscal year 2021, from
January to June, developed similarly to the last months of 2020. While trading
in the US and China continued solid growth, ongoing and new Corona measures,
particularly lockdowns, led to significant business losses in Europe
Strong 1st half-year with double-digit sales and earnings growth
Despite 6-7 months of continuous lockdowns in numerous European countries, sales
and earnings increased year-over-year. Store closures during the first COVID 19
wave lasted only 2-3 months, predominantly between March and May 2020, so the
extended and varied lockdowns of 2021 have been a significant challenge.
With a turnover of EUR 41.9 million for the reporting period January to June
2021, the previous year (January to June 2020) was exceeded by EUR 3.7 million
(approx. 10 %). Likewise, with a result of EUR-13.3 million the previous year's
results were surpassed by approx. +31 %. This does not include the impact of the
real estate sale. As reported, the revenues of EUR 72 million from the sale of
the property at Wolfordstrasse 1-3 in Bregenz were used at the beginning of May
2020 to completely reduce the company's financial debt.
In addition to the significant reduction in operating costs (personnel expenses
and other operating expenses) of +11 %, a +4.5 percentage point increase in the
gross profit margin to 81.4 % (gross profit margin) compared to the same period
of the previous year was the main reason for the jump in earnings.
As part of the the "PITBOLI" (Program for Immediate Top and Bottom Line Impact)
restructuring program, all measures set up since the beginning of 2020, as well
as additional measures, were sufficiently implemented.
Sales growth in nearly all channels and geographies; Online, U.S. and China
business grow double-digits; new brand architecture successfully implemented
Compared to the previous year, sales increased by a total of 10%: 65 % growth in
the China business (in CNY), and 32 % growth in the US business (in USD) were
the primary geographical growth drivers. In EMEA sales were approximately
maintained. Sales in the online business grew at a double-digit rate of 18 %
compared to the previous year. The share of sales generated by the Group's own
online business and the associated online business of its wholesale partners (e-
tailors) increased further to a total of around 34 %, compared to 21 % in the
previous year.
The new brand architecture introduced last year is well established thanks to a
strong plan of collaborations within the "W Lab" and the consolidation of "The
W", the collection with a more contemporary and urban attitude.
With the first international cooperation of the year, Amina Muaddi x Wolford, a
new and fashion-conscious consumer group was reached internationally, driven by
a predominantly digital marketing approach and stationary presence in selected
fashion stores. Key markets were successfully expanded even further through
local collaborations. The first cooperation with Neiwai, a Chinese brand known
for its simple and sustainable lingerie, will be presented in China in
September.
Restructuring with strong bottom line effect; costs further reduced
significantly; efficiency increase in core areas
Having already reported a reduction in operating costs (personnel costs and
other operating expenses and depreciation and amortization) of approximately -
8 % year-on-year for the short fiscal year 2020 (May to December), "PITBOLI"
delivered a significant reduction in operating costs of -11 % compared to the
previous year. Predominantly, the relevant cost blocks "personnel, rent,
purchasing, production and logistics" were consistently addressed. Relevant
efficiency increases in the administrative areas like finance, customer service,
payroll and HR were also achieved.
Outlook: Long-term strategy secures sustainable value creation
With the strong half-year results from 2021 and a solid strategy for the second
half of the year, the Executive Board confirms the break-even for the fiscal
year 2021 from today's perspective, provided that the assumptions regarding the
development of the Corona pandemic hold. Thus, Wolford continues to be on a
strong growth track with sales approx. EUR +1.7 million (+23%) above July 2020.
Sustainable and profitable growth is to be secured by the implementation of the
long- term strategy "North Star/Master Plan for Wolford". An overall strategy
has been defined along the core pillars of "Brand", "Collection", "Geographies"
and "Channels" and has already been tackled with 12 strategic projects in the
consistent sequence of the PITBOLI measures. Particularly noteworthy is the
project launch in August 2021 for the implementation of a new digital
omnichannel architecture, a reduction in the "time to market" (period from
product design to shelf) by around 50% to 32 weeks beginning November 2021, the
completion of the outsourcing of logistics in the fourth quarter of 2021 and the
introduction of sourcing for a short-term response to market developments.
The decisive factors now are continuing stable sales developments despite the
Covid 19 pandemic as well as a consistent continuation of PITBOLI and the
implementation of the North Star / Master Plan Strategy.
Further inquiry note:
Wolford AG
Wolfordstraße 1
6900 Bregenz
Telefon: +43 (0) 5574 6900
Email: investor@wolford.comhttp://company.wolford.com
end of announcement euro adhoc
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issuer: Wolford Aktiengesellschaft
Wolfordstrasse 1
A-6900 Bregenz
phone: +43(0) 5574 690-1258
FAX: +43(0) 5574 690-1410
mail: investor@wolford.com
WWW: http://company.wolford.com
ISIN: AT0000834007
indexes: ATX GP
stockmarkets: Frankfurt, Wien, New York
language: English
