DGAP-Adhoc: Adler Modemärkte AG: Forecast for full year 2016 adjusted - Fundamentals for long-term growth intact


Adler Modemärkte AG  / Key word(s): Change in Forecast

20.10.2016 18:22

Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Haibach (near Aschaffenburg), 20 October 2016. Against the backdrop of a
continuing difficult market environment, Adler Modemärkte AG recorded a
decline in revenue of 9.5% to EUR 117.9 million (Q3 2015: EUR 130.2
million)in the third quarter of 2016. Following a downturn in July 2016,
ADLER's revenue increased significantly in August 2016, whereas the newly
arrived autumn garments did not find a ready market because of the mild,
late-summer temperatures, and revenues dropped significantly. As a result,
EBITDA declined to minus EUR 8.4 million in the third quarter of 2016,
significantly below the comparable prior-year figure of EUR 0.6 million.
During the first nine months of the year, revenue declined by 5.9% to
EUR 375.0 million (9M 2015: EUR 398.6 million) and EBITDA came to minus
EUR 7.7 million (9M 2015: EUR 4.6 million).

In response to these developments, ADLER has further strengthened the
measures to increase efficiency which had already been initiated in the
course of the year. These will result in additional cost savings as the
year 2016 progresses.

In light of its performance in the third quarter of the year, ADLER is
adjusting the forecast for full-year 2016, as given after the first six-
months. The new marketing campaign launched in September is expected to
boost operating performance in the rest of the year. Despite the positive
business performance in October, ADLER forecasts consolidated revenue for
the fourth quarter to be slightly below the previous year's level. This is
because of the current decline in consumer spending and the associated
price pressure. Accordingly, consolidated revenue for full-year 2016 is
expected to fall short of the prior-year figure of approximately EUR 566
million. EBITDA should amount to between EUR 14 to 17 million, so that an
after-tax loss is to be expected. ADLER aims to achieve a slightly positive
free cash flow in 2016. The cash position at year-end will be clearly
positive. The fundamentals for the already communicated sustainable long-
term growth remain intact. ADLER's Management Board expects substantial
cost savings in the amount of approximately EUR 10 million in the 2017
financial year, resulting from the range of measures to increase efficiency
which were already launched in March 2016 and are now being reinforced.
These measures are focusing on the consolidation and improvement of
profitability as well as further increased competitiveness.


20.10.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language:     English
Company:      Adler Modemärkte AG
              Industriestraße Ost 1-7  
              63808 Haibach
              Germany
Phone:        +49 (0) 6021 633 0
Fax:          +49 (0) 6021 633 1299
E-mail:       info@adler.de
Internet:     www.adlermode.com
ISIN:         DE000A1H8MU2
WKN:          A1H8MU
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated
              Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
              Munich, Stuttgart, Tradegate Exchange
 
End of Announcement                             DGAP News-Service
 
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