TOM TAILOR Holding SE
TOM TAILOR GROUP achieves substantial progress with realignment
DGAP-News: TOM TAILOR Holding SE / Key word(s): Half Year Results/Quarter Results
– Group EBIT improved by EUR 17.3 million to EUR 11.8 million in the first half of 2017; reaching the two-year cost savings target of EUR 30-40 million is thus well on the way – Group sales in the first half largely stable at EUR 446.3 million (H1 2016: EUR 451.3 million) despite clean-up of the product and store portfolios – Group EBITDA increased in first half by almost 63 percent to EUR 30.7 million (H1 2016: EUR 18.9 million); cash flow from operating activities rose to EUR 22.2 million (H1 2016: EUR -6.0 million) – Full-year guidance reaffirmed Hamburg, 10 August 2017. By consistently implementing the cost and process optimisation measures, the TOM TAILOR GROUP made considerable progress with the realignment of the Company in the first half of 2017. Despite a slight 1.1 percent decline in sales to EUR 446.3 million due to the clean-up of the product and store portfolios (H1 2016: EUR 451.3 million), the earnings situation was noticeably improved. EBITDA increased by about 63 percent to EUR 30.7 million (H1 2016: EUR 18.9 million). EBIT improved by EUR 17.3 million to EUR 11.8 million. Hence, the Company is well on the way of reaching the two-year cost savings target of EUR 30-40 million. As a result, the Group clearly outperformed the German textile market as a whole, which – based on figures from “TextilWirtschaft-Testclub”, a German publication specializing in the apparel industry – experienced a 3 percent decline in the first half and was actually down by 5 percent in the second quarter. In view of the good company development, the management board has reaffirmed its full-year guidance for 2017. “We are making good progress towards our goal of putting the TOM TAILOR GROUP back on a solid foundation,” says Dr. Heiko Schäfer, CEO of TOM TAILOR Holding SE. “Especially in the second quarter we made a great leap forward. Our results show without a doubt that our realignment measures are taking hold. Consequently, along with the well advanced RESET program, our focus is now also on the preparation and implementation of growth measures such as the expansion of our online business.”
TOM TAILOR makes gains in the retail and wholesale business The TOM TAILOR brand achieved 2.9 percent increase in sales across all channels to EUR 306.5 million (H1 2016: EUR 297.9 million). This included a 1.7 percent increase for the TOM TAILOR Retail segment to EUR 140.2 million (H1 2016: EUR 137.8 million), buoyed in particular by the strong second quarter, in which sales were up 2.0 percent to EUR 75.4 million (Q2 2016: EUR 74.0 million). Simultaneously, the number of own stores declined to 462 from the end of 2016 due to the conscious closure of unprofitable locations (31. December 2016: 472). EBITDA for the retail segment showed a slight decrease to EUR 2.7 million (H1 2016: EUR 3.7 million). In the first half of the year, sales for TOM TAILOR Wholesale rose by 3.9 percent to EUR 166.3 million (H1 2016: EUR 160.1 million), also especially due to a 8.3 percent surge in growth in the second quarter, to EUR 78.8 million (Q2 2016: EUR 72.8 million). The Wholesale segment contributed EUR 20.0 million to the Group EBITDA (H1 2016: EUR 11.0 million). Sales of the BONITA brand were down 8.9 percent in the first half of the year to EUR 139.7 million (H1 2016: EUR 153.4 million). In the second quarter, sales showed a 14.7 percent decrease to EUR 73.1 million (Q2 2016: EUR 85.6 million). Important factors for this development were in particular the reduction of stocks of old goods and the sell-off of inventories in the meanwhile discontinued BONITA Men line. By contrast, the gross profit margin rose to 70.7 percent in the second quarter of 2017 (Q2 2016: 67.6 percent) thanks to the successful launch of the new BONITA Women collection. The number of BONITA stores decreased further to 860 (H1 2016: 1,011). BONITA achieved an increase in EBITDA to EUR 8.0 million, as compared to EUR 4.1 million in the first half of 2016. Positive free cash flow of EUR 14.4 million Cash flow from operating activities increased to EUR 22.2 million in the reporting period (H1 2016: EUR -6.0 million). The positive trend reflected above all the decline in net working capital, primarily owing to the strong push to reduce inventory, which decreased by EUR 67.0 million (H1 2016: 203.3 million) and the EUR 10.8 million increase in net income. This resulted mainly from the strong second quarter, with a net result of EUR 6.6 million (Q2 2016: EUR -1.9 million). The free cash flow improved to EUR 14.4 million (previous year: EUR Net debt as at 30 June 2017 was down significantly to EUR 124.6 million (H1 2016: EUR 239.0 million). Contributing factors were the decline in net working capital and the repayment of short-term credit lines. The equity ratio at 30 June 2017 showed an increase to 31.7 percent (31 December 2016: 23.4 percent). “In light of the substantially improved financial KPIs in the first half of the year, we are very pleased with the outcome of our RESET program,” summarizes Thomas Dressendörfer, CFO of TOM TAILOR Holding SE. “Although 2017 is a transformation year, the increasingly visible successes of our restructuring measures leave us feeling confident as we look ahead to the second half of the year.” Outlook reaffirmed for the 2017 fiscal year The TOM TAILOR GROUP is confirming its forecast, which was adjusted in the first quarter, for the current fiscal year, as the assumptions made at the beginning of the year are still valid, and the market trend and the RESET program are expected to continue as before. Consequently, the management expects a slight decline in Group sales. At the same time, the management board expects to achieve a sharp year-on-year increase in reported EBITDA.
About TOM TAILOR GROUP TOM TAILOR GROUP is an international, vertically integrated fashion company focussed on casual wear in the medium price segment. The product portfolio is complemented by an extensive range of fashionable accessories. With its brands TOM TAILOR and BONITA, the company covers the various core segments of the fashion market. The TOM TAILOR brand is marketed through the retail and wholesale segments, and thus through single-label stores as well as wholesale partners. These include 462 TOM TAILOR stores and 197 franchise stores, 2,439 shop-in-shops and around 7,700 multi-label points of sale. The brand is present in more than 35 countries. Along with its 860 retail stores, BONITA now has 56 shop-in-shop spaces. The collections of both brands are also available through their respective online shops. Information is also available at www.tom-tailor-group.com and www.BONITA.eu Media and investor contact Viona Brandt Lena Christin Wulfmeyer 10.08.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
|