DGAP-News: TOM TAILOR Holding AG / Key word(s): Quarter
Results/Quarter Results
TOM TAILOR Holding AG increases sales and gross margin significantly
in the first nine months of 2011
09.11.2011 / 07:30
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PRESS RELEASE
TOM TAILOR increases sales and gross margin significantly in the first nine
months of 2011
- Sales growth of 18.7% in the first three quarters of 2011
- Retail segment increases sales by 48.6% to over EUR 100 million
- Number of retail stores up by 63 to 221
- Gross profit margin raised to 47.2%
Hamburg, 09 November 2011. In the first nine months of 2011 TOM TAILOR
Holding AG pursued its course of profitable growth at a rapid pace. The
Group increased its sales in the reporting period by 18.7% to EUR 295.3
million (9M 2010: EUR 248.8 million) and pulled away strongly from the
general performance in the sector. In the third quarter TOM TAILOR
increased its sales despite adverse weather conditions and last year's good
figures by 16.8% to EUR 118.6 million (Q3 2010: EUR 101.5 million) and
profited altogether by consistently pursuing its expansion strategy. The
Group improved its gross margin in the nine-month period by 1.1 percentage
points to 47.2%.
During the reporting period, sales in the Retail segment increased by 48.6%
to EUR 102.8 million (9M 2010: EUR 69.2 million). In the third quarter the
segment also grew rapidly by 46.1%, generating sales of EUR 39.3 million
(Q3 2010: EUR 26.9 million). In the first three quarters the Wholesale
segment achieved a sales increase of 7.2% to EUR 192.5 million (9M 2010:
EUR 179.6 million).
Whereas the German textile market contracted slightly over the nine months,
TOM TAILOR successfully expanded its business. With like-for-like growth of
5.4% in the first nine months of the year TOM TAILOR again outperformed the
German textile market, which declined by 1%. In a difficult third quarter
for the fashion industry, the Retail segment achieved like-for-like growth
of 2.3%. TOM TAILOR thus reported a sales increase on a like-for-like basis
for the eleventh quarter in a row.
'In a difficult third quarter 2011 TOM TAILOR stayed on track and
outperformed the market. This is the result of our strong customer focus
and systematic expansion strategy: TOM TAILOR is now an accessible and
well-known brand. This is confirmed by the recent Outfit Study 7.0 released
by Spiegel publishing group; TOM TAILOR is now at number eight on the list
of the ten best-known fashion brands in Germany, moving in a single leap to
brand recognition of over 93%. We also achieved an above-average increase
in the number of consumers who already own TOM TAILOR fashion items or are
willing to buy some. We are proud of these results and they will also
motivate us for the future,' said Dieter Holzer, Chairman of the Management
Board (CEO) of TOM TAILOR Holding AG.
As part of its expansion strategy TOM TAILOR pays particular attention to
increasing its controlled retail space. This retail space encompasses the
Company's own retail stores including the TOM TAILOR e-shop, and also
franchise stores and shop-in-shops. Since the start of the year the Group
has increased the number of its retail stores across Europe by 63 to a
total of 221 (31.12.2010: 158). In the third quarter the Group expanded its
presence to Poland, where it opened its first retail store. Another five
stores are due to open there by the end of the year. The number of
shop-in-shops went up by 285 to a total of 1,726 (31.12.2010: 1,441).
At the end of the first nine months TOM TAILOR had approximately 126,000
square metres of controlled retail space (31.12.2010: 109,000 square
metres).
Earnings before interest, tax, depreciation and amortisation (EBITDA)
improved in the first nine months by 21.7% to EUR 26.4 million (9M 2010:
EUR 21.7 million). This growth was due primarily to the increasing retail
share of overall sales. High material costs at the beginning of the year,
significant pre-opening costs for the retail expansion and third quarter
retail earnings, which were down year-on-year had an adverse effect. In the
third quarter EBITDA came to EUR 16.5 million, or 7.1% above the figure for
the same quarter last year (Q3 2010: EUR 15.4 million).
The changes to the Group's financing structure resulted in a sustained
improvement to the financial result. This came in at EUR -4.8 million after
EUR -10.3 million in the same period last year. In the first three quarters
of 2011 the net result for the period climbed from EUR -5.5 million in 2010
to EUR 2.3 million. Earnings per share therefore amounted to EUR 0.15 (9M
2010: EUR -0.41).
Cash flow from operating activities improved from EUR -7.9 million to EUR
-1.0 million in the reporting period. By expanding its retail space TOM
TAILOR increased its working capital, which will translate into increasing
cash inflow from sales in the seasonally strong Christmas quarter. Cash
outflow due to interest payments decreased markedly.
TOM TAILOR continues to expect sales of at least EUR 400 million in fiscal
year 2011. The charges caused by higher cotton prices and higher transport
costs at the beginning of the financial year, investments in a strategic
procurement set-up, pre-opening costs incurred for new stores, and a third
quarter Retail segment result which has been below last year's are expected
to result in an EBITDA of approximately EUR 48 million. This is in line
with the previous guidance for the full year. The prerequisites for the
Company achieving its targets are that consumer confidence during the
fourth quarter, which is extremely important to the Retail segment, remains
stable and that the turbulences in the financial markets do not have a
negative impact on the economy and consumer confidence.
|[![CDATA[|[pre|]]]|]
KEY FIGURES FOR THE Q3 Q3 Change Q1-Q3 Q1-Q3 Change
GROUP
EUR million 2011 2010 in % 2011 2010 in %
Sales 118.6 101.5 16.8 295.3 248.8 18.7
Retail 39.3 26.9 46.1 102.8 69.2 48.6
Wholesale 79.3 74.6 6.3 192.5 179.6 7.2
Gross profit 55.4 45.1 22.8 139.3 114.7 21.4
Gross profit margin in % 46.7 44.4 47.2 46.1
Adjusted EBITDA 17.1 15.8 8.2 27.2 29.3 -7.2
Adjusted EBITDA margin
in % 14.4 15.6 9.2 11.8
Non-recurring effects 0.6 0.4 50.0 0.8 7.6 -89.5
thereof due to IPO 0.0 0.0 0.0 6.4
EBITDA 16.5 15.4 7.1 26.4 21.7 21.7
EBITDA margin in % 13.9 15.2 8.9 8.7
Adjusted net result for
the period 6.3 9.9 -36.4 5.7 6.5 -12.3
Adjusted earnings per
share (in EUR) 0.38 0.74 -48.6 0.35 0.49 -28.6
Non-recurring effects
incl. calc. tax effect 1.3 1.7 -23.5 3.4 12.0 -71.7
thereof due to IPO 0.0 0.0 0.0 6.9
Net result for the
period 5.0 8.2 2.3 -5.5
Earnings per share (in
EUR) 0.31 0.61 0.15 -0.41
Cash flow from operating
activities 8.5 9.5 -10.5 -1.0 -7.9 87.3
Capital expenditure 7.2 9.1 -20.9 17.5 19.1 -8.4
|[![CDATA[|[/pre|]]]|]
|[![CDATA[|[pre|]]]|]
30.09.2011 31.12.2010 Change in %
Total assets 333.4 295.0 13.0
Shareholders' equity 105.1 100.2 4.9
Equity ratio (in %) 31.5 34.0
Liquid funds 5.2 22.5 -76.9
Net debt 87.6 52.1 68.1
|[![CDATA[|[/pre|]]]|]
|[![CDATA[|[pre|]]]|]
Points of sale 30.09.2011 31.12.2010 Absolute change
Retail stores 221 158 63
Franchise stores 155 175 -20
Shop-in-shops 1,726 1,441 285
|[![CDATA[|[/pre|]]]|]
About TOM TAILOR
TOM TAILOR - Casual fashion for a casual life!
The TOM TAILOR Group is an international and vertically integrated
lifestyle company. It offers stylish casual wear and accessories for men,
women, teenagers and children in the medium price range. Since the
Company's establishment in 1962 its authentic fashions have highlighted a
positive and light-hearted attitude to life. Every year 12 collections are
developed for each of the product lines TOM TAILOR Casual and TOM TAILOR
Denim. The fashion sphere is completed by an extensive array of licences.
The Group distributes its collections via the wholesale and retail
segments. TOM TAILOR is a dynamic company that has been growing and
expanding continuously for many years. At the end of September 2011, TOM
TAILOR was represented in more than 35 countries by 221 dedicated stores,
the TOM TAILOR e-shop, 155 franchise stores, 1,726 shop-in-shops, and over
6,000 multi-label points of sale. The TOM TAILOR Group generated sales of
EUR 118.6 million in Q3 2011 (Q3 2010: EUR 101.5 million). The Company
employs 1,468 people worldwide (as of 30.09.2011).
Press and investor contact
Dr Andrea Rolvering
Head of Investor Relations & Corporate Communications
TOM TAILOR Holding AG
Phone: +49 (0) 40 58956-429
Fax: +49 (0) 40 58956-498
Email: anr@tom-tailor.com
Erika Kirsten
Corporate Communications
TOM TAILOR GmbH
Phone: +49 (0) 40 58956-420
Fax: +49 (0) 40 58956-498
Email: ek@tom-tailor.com
Further information can also be found at www.tom-tailor.com
End of Corporate News
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Language: English
Company: TOM TAILOR Holding AG
Garstedter Weg 14
22453 Hamburg
Germany
Phone: +49 (0) 40 589 56 0
Fax: +49 (0) 40 589 56 398
E-mail: info@tom-tailor.com
Internet: www.tom-tailor.com
ISIN: DE000A0STST2
WKN: A0STST
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in Berlin, Düsseldorf, Hannover, München,
Stuttgart
End of News DGAP News-Service
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145334 09.11.2011
DGAP-News: TOM TAILOR Holding AG increases sales and gross margin significantly in the first nine months of 2011
| Source: EQS Group AG