TOM TAILOR on track; IPO boosts financial strength
23 Aug '10
5 min read
After a EUR 2.6 million loss in the prior year, EBITDA in the Wholesale segment achieved a positive value of EUR 0.8 million in the traditionally weaker second quarter. The half-year profit in the Wholesale segment of EUR 3.2 million in 2010 (H1 2009: EUR 6.7 million) thus forms a solid basis for the continued improvement of earnings in the seasonally stronger second half of the year.
The financial result was EUR -8.7 million at the end of the first six months. This means that despite special charges in the amount of approximately EUR 3.4 million related to debt restructuring in connection with the IPO, the result was EUR 1.8 million higher than in the same period in the prior year (H1 2009: EUR -10.5 million).
Overall, the adjusted net Group result for the first half of 2010 improved by 70.4% from a net loss of EUR 11.4 million to a net loss of EUR 3.4 million (adjusted loss per share: EUR 0.29). The adjusted net result for the second quarter of 2010 also improved significantly, by EUR 7.2 million or 83.5% to a net loss of EUR 1.4 million (Q2 2009: net loss of EUR 8.6 million).
The lower interest expense, the non-recurrence of the IPO costs, and above all the increase in operating earnings will lead to an improvement in Group earnings in the future.
The focus of the Group's expansion strategy is on opening new retail stores, an effort that will be stepped up as of the third quarter of 2010. Twenty-three new store contracts have already been concluded for the second half of 2010. In the past six months, the number of own stores was increased by nine to a total of 96 stores (excluding the e-shop).
In the Wholesale segment, the Group also plans to expand the number of franchise stores and shop-in-shops. Since December 31, 2009, the number of franchise stores increased by four to 205 and the number of shop-in-shop areas from 1,108 to 1,240.
The Management Board confirms its prediction of growth in revenue of between 8 and 12% for the year 2010 as a whole. At the same time, profitability is to be increased, primarily on the basis of positive economies of scale and the elimination of one-time effects.
The TOM TAILOR Group is an international and vertically integrated lifestyle company. It offers stylish casual wear and accessories for men and women, teenagers, and children in a medium price range. Since the Company's establishment in 1962, its authentic fashions have highlighted a positive and light-hearted attitude to life.
TOM TAILOR is represented in the fashion market with the brands TOM TAILOR Casual and TOM TAILOR Denim developing twelve collections for each brand per year. The range is complemented with 17 licensed product groups. The fashion company distributes its collections through the Retail and Wholesale segments. TOM TAILOR is a dynamic company that has been continuously growing and expanding for many years.
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