Minimal sales increase for Wolford

Due to the difficult market environment, Wolford’s sales improved slightly for the first half of 2007/08. The Wolford Group increased its sales with only 0.2% to EUR 76.6 million in comparison to sales increase of 18.2% in the previous fiscal year. Whereas Wolford generated a rise in first quarter sales of 4.6%, the second quarter of 2008/09 developed less favourably contrasting with the high increase in the second quarter of last year’s 19.1%.

In addition to the perceptible consumer restraint in the luxury segment, the additional costs relating to newly opened retail sales locations during the reporting period and the effects of foreign currency developments, primarily the US dollar and the British pound, negatively impacted the earnings of the Austrian luxury brand. Against this backdrop, the operating result before depreciation, amortization and impairment (EBITDA) fell to EUR 8.1 million in the second quarter of current fiscal year, based on an extremely strong performance in the comparable period of the previous year of 53.9% rise. The operating profit (EBIT) also decreased by 23% to EUR 6.3 million, considering that the 71% rise in operating profit achieved in last year’s 2Q ranked among the strongest quarterly improvements in Wolford’s history.

The international luxury label improved sales during the period under review in Belgium (+32.5%), Switzerland (+12.7%), France (+11.4%), Germany (+5.2%) and only 2.2% in Great Britain. The previous year’s sales level could be maintained in Central and Eastern European markets, Austria, The Netherlands and in Asia/Oceania, whereas sales fell in Italy and Scandinavia.

For 2008/09, Wolford Group is looking to accelerate the implementation of sewing production capacities at its own clothing manufacturing facility in Slovenia. The start-up of operations is scheduled for the 2010/11 fiscal year. With this project, Wolford wants to lay the groundwork for further expansion and make a contribution towards ensuring the long-term success of the company.

Image: Wolford

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