DGAP-News: TOM TAILOR Holding AG / Key word(s): Final Results
TOM TAILOR posts new record figures for sales and earnings in 2011
21.03.2012 / 07:30
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- Group sales up 18.4% to EUR 411.6 million in 2011
- Retail segment grew by 44.9%
- Gross profit margin improved by 3 percentage points to 49.0%
- Adjusted EBITDA increased by 20% to EUR 48.1 million
- Dividend of EUR 0.17 per share planned for first time
TOM TAILOR Holding AG has met its targets for the 2011 financial year. In
the light of its good performance, the Company intends to pay its
shareholders a dividend of EUR 0.17 per share for the first time. The Group
increased sales by 18.4% compared to the previous year to EUR 411.6 million
(2010: EUR 347.7 million) and exceeded its targeted level of over EUR 400
million. This sales growth reflects the Company's successful management of
fashion trends, the accelerated expansion of its controlled retail space
and increased like-for-like sales. With sales up 44.9%, the Retail segment
was again the strongest growth driver. In the Wholesale segment, sales rose
by 6.6%. The percentage of consolidated sales generated abroad edged up
from 31.5% to 35.1%.
Although procurement prices climbed during the course of the year and
start-up costs were higher due to the accelerated business expansion, TOM
TAILOR succeeded in further improving its earnings power. Adjusted for
special items, earnings before interest, tax, depreciation and amortisation
(EBITDA) rose by 20.0% to EUR 48.1 million and came in as expected. At EUR
46.4 million, the Company's reported EBITDA increased by 54.2% compared to
the previous year's EUR 30.1 million.
'Despite adverse conditions at times, TOM TAILOR realized dynamic,
profitable growth in 2011. Due to a strong fourth quarter, we were more
than able to compensate for the muted summer business which was impacted by
the weather. Overall we achieved the strongest percentage growth for five
years in 2011 by consistently pursuing our expansion and brand strategy in
conjunction with our trend management. We significantly increased our
presence via controlled retail space and further strengthened the TOM
TAILOR brand,' said Dieter Holzer, Chairman of the Management Board (CEO)
of TOM TAILOR Holding AG. 'Two years after our IPO, we want to share the
Company's success with our shareholders by paying out a dividend for the
first time.'
Strong sales growth in the expanding Retail segment
In the 2011 financial year, TOM TAILOR benefited from consistently
expanding its sales space, both in Germany and abroad, as well as from its
systematic trend management which means to quickly pick up on international
fashion trends and offering corresponding products at an attractive price.
In addition, the continuous investments into the brand had a positive
effect. According to the results of the Outfit 7.0 study by the magazine
Spiegel, TOM TAILOR is now among the Top 10 of the best-known fashion
brands in Germany. In the comparative period examined during the study,
consumers' willingness to buy TOM TAILOR products trebled.
Sales in the Retail segment - which comprises retail stores operated by TOM
TAILOR itself along with e-commerce - rose by 44.9% to EUR 154.6 million
(2010: EUR 106.7 million). The number of TOM TAILOR retail stores increased
by 90 to 248 in 2011 (2010: 158). On a like-for-like basis, sales increased
by 6.8%. TOM TAILOR once again clearly outperformed the German textile
industry, which stagnated in the full year 2011 [source: TW Testclub
01/2012]. E-commerce business grew by 13.5% to EUR 24.7 million,
underlining the growing importance of the Internet as a sales channel.
Sales up by 6.6% in the Wholesale segment
In the Wholesale segment, which includes franchise stores and
shop-in-shops, TOM TAILOR grew sales by 6.6% to EUR 257.0 million (2010:
EUR 241.0 million). The segment particularly benefited from the expansion
of the sales network. TOM TAILOR added 345 new shops-in-shops in 2011,
taking the total number to 1,786 (2010: 1,441). Due to the improved
economic environment in the Eastern European markets, the segment's sales
abroad increased overproportionately strong at 8%.
Stronger earnings power - positive economies of scale
The Group improved its gross profit margin to 49.0% (2010: 46.0 %) although
costs increased in the course of the year. TOM TAILOR achieved a gross
profit margin of 53.5% in Q4 2011. In the first quarter, costs were
particularly driven by inflated freight and logistics expenses prompted by
a shortage of production capacity and high cotton prices. Higher start-up
costs were also reported in 2011 as the Group expanded sales space at a
faster rate. Nevertheless, adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA) grew by 20.0% to EUR 48.1 million
(2010: EUR 40.1 million). Economies of scale as a consequence of the
accelerated sales outlet expansion had a particularly positive effect. The
adjusted EBITDA margin improved slightly from 11.5% in 2010 to 11.7% in the
reporting period. Reported EBITDA including non-recurring effects increased
from EUR 30.1 million in the previous year to EUR 46.4 million. The
reported EBITDA margin climbed to 11.3% (2010: 8.7%).
The Retail segment posted an adjusted EBITDA of EUR 16.4 million (2010: EUR
14.0 million). Its reported EBITDA increased from EUR 13.1 million to EUR
16.2 million. The Wholesale segment posted an adjusted EBITDA of EUR 31.7
million (2010: EUR 26.0 million). The segment's reported EBITDA increased
to EUR 30.2 million after EUR 16.9 million in the previous year.
Profit after tax also benefited from the positive course of business. TOM
TAILOR boosted its adjusted net result for the period by 21% to EUR 15.0
million (2010: EUR 12.4 million). Its recurring EPS improved accordingly
from EUR 0.87 to EUR 0.91. The reported net result for the period
quadrupled from EUR 2.4 million to EUR 10.0 million, while the earnings per
share reported rose from EUR 0.15 to EUR 0.59.
Higher operating cash flow - solid capital base
The cash flow from operating activities rose to EUR 20.4 million (2010: EUR
15.0 million), despite a sharper increase in working capital due to the
Company's expansion. This development decisively reflects positive effects
arising from the accelerated expansion in both segments. At EUR -22.2
million (2010: EUR -26.7 million), the cash outflow from investing
activities was within the expected range. In 2011, the cash outflow from
financing activities totalled EUR -5.2 million; it was affected by the
seasonal drawdown of existing bank credit lines and the repayment of other
financial liabilities.
Net debt increased from EUR 52.1 million to EUR 74.6 million as of the
balance sheet date due to the faster rate of business expansion. With an
equity ratio of 35.5% (31.12.2010: 34.8%), TOM TAILOR continued to operate
on a healthy capital base. In February 2012, the Group announced that it
had signed a refinancing agreement with a volume of EUR 225 million and a
duration of three years as well as an option to extend it by a further two
years. The Company therefore sees itself well funded for its further
expansion and expects to be able to realize savings on its current interest
expenses in the future thanks to more favourable financing conditions.
Outlook: Continuing the expansion course
TOM TAILOR will continue on its profitable growth path in 2012 and
accelerate the expansion of its own controlled sales space, both in Germany
and abroad. In addition, the Company plans to add the new premium product
line TOM TAILOR POLO TEAM to the brand's portfolio in autumn.
The Group intends to open another 60 to 70 retail stores in 2012. In
addition to this, TOM TAILOR will continue to invest in e-commerce, which
is of particular relevance to its younger target groups. The Wholesale
segment is expected to add between 200 and 250 shops-in-shops, as well as
20 to 25 franchise stores in 2012.
With respect to sourcing, TOM TAILOR expects first positive effects from
the purchasing company which was established in Asia with Asmara
International Ltd. in 2011. The company, which is led by TOM TAILOR, will
directly manage all buying activities in the future. The first collections
are expected to be procured through this purchasing company in the second
half of 2012. Through this important strategic move TOM TAILOR is not only
closer to its procurement markets, but secures access to both, cotton and
production capacity in the long run. In addition to this, the Company
expects to benefit from the bundling of purchase orders.
It is currently difficult to assess how the consequences of the ongoing
sovereign debt crisis will affect consumer confidence in many European
countries in 2012. TOM TAILOR will particularly force its expansion
activities in Germany, Austria and Switzerland as it anticipates
consumption to remain stable in those markets. At present, the Management
Board of TOM TAILOR Holding AG expects sales of at least EUR 470 million
for the 2012 financial year. Following adjustments for non-recurring
expenses, it forecasts EBITDA of between EUR 51 million and EUR 53 million.
|[![CDATA[|[pre|]]]|]
KEY FIGURES FOR THE GROUP
EUR million 2011 2010 Change
Sales 411.6 347.7 18.4%
Retail 154.6 106.7 44.9%
Wholesale 257.0 241.0 6.6%
Gross profit 201.6 159.8 26.2%
Gross profit margin (in %) 49.0 46.0
Adjusted EBITDA 48.1 40.1 20.0%
Adjusted EBITDA margin (in %) 11.7 11.5
EBITDA 46.4 30.1 54.2%
EBITDA margin (in %) 11.3 8.7
Non-recurring effects 7.0 21.5
thereof depreciation on the purchase price allocation
(PPA) from 2005 5.3 8.1
thereof due to IPO - 8.0
Adjusted net result for the period 15.0 12.4 21.0%
Adjusted earnings per share (in EUR) 0.91 0.87 4.6%
Non-recurring effects incl. calc. tax effect 4.9 10.0 -51.0%
thereof depreciation on the purchase price allocation
(PPA) from 2005 3.7 5.6
Net result for the period 10.1 2.4 320.8%
Earnings per share (in EUR) 0.59 0.15
Cash flow from operating activities 20.4 15.0 36.0%
Capital expenditure 21.9 25.4 -13.8%
|[![CDATA[|[/pre|]]]|]
|[![CDATA[|[pre|]]]|]
31.12.11 31.12.10 Change
Total assets 320.5 287.9 11.3%
Shareholders' equity 113.7 100.2 13.5%
Equity ratio (in %) 35.5 34.8
Liquid funds 9.3 22.5 -58.7%
Net debt 74.6 52.1 43.2%
Net debt/adjusted EBITDA 1.6 1.3
|[![CDATA[|[/pre|]]]|]
|[![CDATA[|[pre|]]]|]
Own controlled points of sale 31.12.11 31.12.10 Absolute change
Retail stores 248 158 +90
Franchise stores 155 175 -20
Shops-in-shops 1.786 1.441 345
|[![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 December 2011, TOM
TAILOR was represented in more than 35 countries by 248 dedicated stores,
the TOM TAILOR e-shop, 155 franchise stores, 1,786 shop-in-shops, and over
6,000 multi-label points of sale. The TOM TAILOR Group generated sales of
EUR 411.6 million in FY 2011 (FY 2010: EUR 347.7 million). The Company
employs 1,541 people worldwide (as of December 31, 2011).
Press and investor contact
Dr Andrea Rolvering
Head of Investor Relations & Corporate Communications
TOM TAILOR Holding AG
Tel.: +49 (0) 40 58956-429
Fax: +49 (0) 40 58956-498
Email: anr@tom-tailor.com
Erika Kirsten
Corporate Communications
TOM TAILOR GmbH
Tel.: +49 (0) 40 58956-420
Fax: +49 (0) 40 58956-498
Email: ek@tom-tailor.com
Information also available 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
Indices: SDAX
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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161481 21.03.2012
DGAP-News: TOM TAILOR posts new record figures for sales and earnings in 2011
| Source: EQS Group AG