EANS-News: Wolford Aktiengesellschaft
Wolford Centralizes European Marketing and Sales and Strengthens its
Headquarters in Bregenz
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Strategic management decisions/Company Information
Bregenz, May 24, 2016. Wolford is centralizing its sales and marketing
organization. There will be one central sales and marketing platform for the
Europe, Middle East and Africa (EMEA) Region located at corporate headquarters
in Bregenz instead of nine sales organizations throughout Europe. The company is
also focusing on the platform strategy in America and Asia through its business
hubs in New York and Hong Kong.
The headquarters in Bregenz is being strengthened by this reorganization. A
central sales and marketing organization for the EMEA region is being set up to
provide comprehensive online and offline support for the activities of all
company sales channels. Furthermore marketing at headquarters is being expanded.
It encompasses trade marketing, visual merchandizing, marketing communications
and art direction, and is responsible for the entire organization. Wolford will
create about 20 new jobs in Bregenz in the current 2016/17 financial year within
the context of implementing these measures.
The relocation of sewing operations to the Wolford site in Slovenia as initiated
in 2014 and the related concentration of textile production in Bregenz will
finally be concluded in the current financial year. Local administrative
structures are also being streamlined as a consequence of the further
optimization of production and logistics processes and the consistent review of
all support functions.
Clear focus on the end customer
"The far-reaching reorganization of marketing and sales is the logical result of
the resolute orientation of the entire company to retail requirements and thus
to the end customer, regardless through which sales channel they are reached",
states Ashish Sensarma, CEO of Wolford since the beginning of 2015. These
measures go hand in hand with the systematic optimization of the online and
offline sales experience, including implementation of a new shop concept and the
redesigning of the window concept as of September 2016 as well as a new
appearance for the 16 global online boutiques. At the same time, the
profitability of Wolford's own retail operations is being continually increased.
Retail Stores with expiring lease agreements are subject to a fundamental review
and may be discontinued where appropriate. Significantly lower discounts on
Wolford products will be granted as a means of further increasing their profit
contributions.
"Wolford's gross margin is comparable to other global luxury brands", emphasizes
Axel Dreher, COO/CFO of Wolford. "However, structural measures are also
necessary in order to sustainably strengthen profitability and resolutely orient
the company to market requirements. We are now specifically focusing on doing
this."
As part of its strategic objectives, Wolford AG has set a goal of gradually
increasing its EBIT margin to 10 percent in order to match the performance of
other luxury brands. Corresponding measures already partly initiated in 2014 to
increase revenue and reduce costs were intensified and expanded in the past
financial year.
Further inquiry note:
Wolford AG
Maresa Hoffmann
Referentin Investor Relations & Corporate Communications
Tel.: +43 5574 690 1258
investor@wolford.com | company.wolford.com
end of announcement euro adhoc
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company: Wolford Aktiengesellschaft
Wolfordstrasse 1
A-6900 Bregenz
phone: +43 (0) 5574 690-1268
FAX: +43 (0) 5574 690-1219
mail: investor@wolford.com
WWW: company.wolford.com
sector: Textiles & Clothing
ISIN: AT0000834007
indexes: ATX Prime, ATX Global Players
stockmarkets: free trade: Frankfurt, regulated dealing: Wien, ADR: New York
language: English
