EQS-News: Wolford AG: 2022 Half-Year Figures: Strategy Meets Sales Expectations

EQS-News: Wolford AG / Key word(s): Half Year Results
Wolford AG: 2022 Half-Year Figures: Strategy Meets Sales Expectations

23.09.2022 / 18:06 CET/CEST
The issuer is solely responsible for the content of this announcement.

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• Conditions remain difficult, both geopolitically and economically
• Sales up 29% year-over-year
• Earnings (EBIT) down 14% due to high costs caused by Inflation
• Progress made on market and brand positioning
• Stabilization of the positive sales trend expected for the year
overall

Management changes

In July and August 2022 a number of supervisory and management board
changes were made. The team today remains focused on driving top line
growth and strengthening operational controls across the business.

With sales of € 54.3 million for the reporting period from January to June
2022, Wolford recorded an improvement of 29.4% compared to the first half
of 2021. Taking like-for-like growth into account, excluding the licensing
business, this figure comes to +40%, which is at the upper end of the
scale in relation to the luxury goods reference market.

The sales growth is spread across almost all geographical regions and
distribution channels. The USA showed particularly strong growth of 40%.
Sales grew by 30% in EMEA despite the ongoing war. In Asia/Oceania the
previous year’s level was exceeded slightly despite the pandemic. Both
retail and wholesale recorded double-digit growth. Sales via multibrand
retailers improved by almost 60%. The online business also recorded
positive development.

The ongoing structural reorganization and the difficult conditions
continue to be reflected in the company’s earnings, with EBIT falling by
14.4% compared with the first half of 2021 to € -16.9 million. Prices of
fabrics, paper, energy and logistics rose, in some cases significantly,
due to inflation and shortages on the procurement markets. There was also
an increase in staff costs in line with collective agreements. Under these
conditions the company cannot expect any improvement in operating profit
(EBIT) for the full year.

To ensure liquidity, the company has been granted loans by the majority
shareholder. The company also maintains close contact with banks to secure
further financing.

Work to Increase Presence and Visibility; Solid Marketing Plan Put in
Place

The company has continued to work on expanding its visibility in the
markets it operates in over the past few months. This includes developing
a solid retail plan with six new store openings and relocations in key
cities. The company opened a new flagship store in Paris in Rue Saint
Honoré. In New York the Madison Store was moved to a new, bigger and
better location, still on Madison Avenue. All the openings and relocations
feature the new “Green Experience” store concept, which showcases the new
brand image and respects the company’s sustainability standards.

The company also implemented a solid marketing plan to increase brand
awareness and attractiveness. The new collaborations with the renowned
brands Alberta Ferretti and GCDS have helped to increase the number of
visitors across all channels and to reach new customer groups. Brand
awareness has increased further thanks to a strong digital and social
media strategy.

Outlook: Wolford Forges Ahead With its Strategic Approach

Following the significant sales growth achieved in the first half of 2022,
the Management Board is confident that Wolford will stabilize the positive
sales trend in the second half of the year. Wolford is on course in its
quest to beat the previous year’s sales in 2022 – despite the still
difficult market conditions.
The company will put the work it started last year with the Northstar
strategy into concrete operational practice in the current year with a
project it has named “The Spacer”. The Spacer focuses on evolving the
brand and product strategy and aims to create space and speed in achieving
Northstar.

Now that its strategic course has been set, Wolford is concentrating more
intensively on improving its operating processes further. Time-to-market
should be shortened and operations structured in such a way that the
company can respond more flexibly to unpredictable market conditions in
the future.
 

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23.09.2022 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: Wolford AG
Wolfordstrasse 1
6900 Bregenz
Austria
Phone: +43/5574/6900
E-mail: investor@wolford.com
Internet: www.wolford.com
ISIN: AT0000834007
WKN: 83400
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Munich, Stuttgart; Vienna Stock Exchange (Official Market)
EQS News ID: 1449333

 
End of News EQS News Service

1449333  23.09.2022 CET/CEST

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