EANS-Adhoc: Wolford Aktiengesellschaft Wolford adjusts Outlook for the Current
Financial Year
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Disclosed inside information pursuant to article 17 Market Abuse Regulation
(MAR) transmitted by euro adhoc with the aim of a Europe-wide distribution.
The issuer is solely responsible for the content of this announcement.
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Earnings Forecast
31.08.2016
Following today's meeting, the Management Board of Wolford AG revised its
forecast for the current 2016/17 financial year (May 1, 2016 to April 30,
2017).
In the light of a significant decline in first-quarter revenue (-18%) compared
to Q1 2015/16 and the ongoing market weakness in the month of August, it is
unlikely that the company will be able to make up for the revenue decrease
during the rest of the financial year. Negative events in important core markets
(i.a. political uncertainty in the USA, fear of terrorism in France, Brexit)
have led to weak consumption and declining customer traffic. In particular,
Wolford's high margin retail business reported a 9% drop in revenue in the first
quarter of the 2016/17 financial year in comparison to the prior-year period.
Against this backdrop and additional negative currency effects (British pound),
Wolford's operating results (EBIT) in the first quarter of 2016/17 financial
year amounted to minus EUR 8,3 million (previous year: minus EUR 3,0 million)
significantly lower than the company originally forecast. This unfavorable
earnings development can only be potentially offset to a limited extent in
subsequent quarterly periods which traditionally report higher sales.
As a result, the Management Board expects revenue for the entire 2016/17
financial year to stagnate or drop slightly below the prior-year level, and
possibly negative operating results in the lower single-digit million euro
range. The implementation of the program of measures designed to sustainably
increase revenue, enhance profitability and carry out a creative realignment of
the company is proceeding on schedule. The cost-cutting drive is being
accelerated, which is why the company reaffirms its medium-term planning
targets.
Wolford AG will announce details on its business development on September 9,
2016 within the context of the publication of its Report on the First Quarter of
2016/17.
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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issuer: 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
