DGAP-News: TOM TAILOR Holding AG / Key word(s): Final Results/Development of
Sales
TOM TAILOR GROUP confirms figures for the fiscal year 2015 and steps up
strategic realignment
17.03.2016 / 07:30
The issuer is solely responsible for the content of this announcement.
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- Group exceeds sales forecasts with 2.5% increase to EUR 955.9 million
- Growth in all segments: TOM TAILOR Wholesale 2.8%; TOM TAILOR Retail
4.9%; BONITA 0.3%
- Recurring EBITDA for the Group in target corridor at EUR 76.3 million
- Recurring net income of EUR 14.3 million; reported net income of EUR
0.1 million
- Group free cash flow of EUR 13.1 million
- Gains in profitability and efficiency with focus on core markets and
core brands
Hamburg, 17 March 2016. By presenting its figures for the fiscal year 2015,
the TOM TAILOR GROUP today confirms its preliminary results released on 23
February 2016. With a 2.5% increase in sales to EUR 955.9 million (previous
year: EUR 932.1 million), the TOM TAILOR GROUP exceeded the refined sales
forecast of EUR 945-955 million announced in September 2015. Recurring
earnings before interest, taxes, depreciation and amortization (EBITDA) for
the year, at EUR 76.3 million, were within the target corridor. In the
current fiscal year, the TOM TAILOR GROUP will accelerate its initiated
strategic realignment that is based on the two fundamental programs "POLE
POSITION" and "CORE". Key purpose of the project POLE POSITION is the
acceleration of the Group's verticalization and digitalization. CORE is a
cost cutting and efficiency program which aims at strengthening the
profitability.
"The textile industry is undergoing rapid change. Digitalization is opening
up whole new worlds for product and service offerings. At the same time,
shopping habits are changing and buying decisions become more spontaneous.
After years of strong growth, the TOM TAILOR GROUP has entered a phase of
focusing. We began responding to the changes in 2015 and plan to take a
step-by-step approach in implementing the launched measures. We have
complete confidence that by taking these actions we will improve our
profitability and competitiveness in the long term," said Dieter Holzer,
CEO of TOM TAILOR Holding AG.
Sales growth in a stagnating market
The TOM TAILOR GROUP increased sales in all segments and thus outperformed
the overall German textile market, where sales were generally flat in 2015
(Source: TW-Testclub 1B/2016). The Group's growth was driven by the TOM
TAILOR umbrella brand, with a 3.8% increase in sales to EUR 630.0 million.
The sales of TOM TAILOR Wholesale were up by 2.8% in the year under review
to EUR 341.0 million (previous year: EUR 331.7 million). The segment
experienced a healthy trend in the first half of the year that slowed down
in the third quarter due to shipping delays experienced as the new
third-party-operated logistics center went into operation. The fourth
quarter again saw a substantial 8.5% increase in sales. Since the start of
the year under review, the number of shop-in-shop spaces has increased
substantially by 270 to 2,956. Meanwhile, the number of franchise shops
decreased by three to 203, mainly through the absorption of shops into the
Group's own retail organization.
After a relatively slow start in 2015, the retail business of the TOM
TAILOR brand posted gains in sales in every quarter and in the fourth
quarter achieved an increase of 8.2%. The brand's retail sales thus
increased by 4.9% for the entire year to EUR 289.1 million (previous year:
EUR 275.5 million). The number of TOM TAILOR Retail stores increased by 78
to 460 as compared with 2014.
Sales for the BONITA umbrella brand increased slightly to EUR 325.8 million
(previous year: EUR 324.9 million). BONITA thus accounted for a 34.1% share
of Group sales (previous year: 34.9%). The number of BONITA stores
increased by 13 to 1,026.
Earnings development reflects one-time effects
Gross profits increased to EUR 535.3 million (previous year: EUR 531.8
million). The gross profit margin was down slightly to 56.0% (previous
year: 57.0%), mainly due to targeted product investments for BONITA. At
66.2% the gross profit margin of BONITA remained however at a very healthy
level (previous year: 68.1%).
Recurring EBITDA for the Group was EUR 76.3 million (previous year: EUR
87.2 million) and was thus within the target range. The recurring EBITDA
margin was 8.0% (previous year: 9.4%). Profits were negatively impacted by
expenditures to increase retail space and the temporary delivery problems
experienced in the start-up phase of the new third-party-operated logistics
center. Without these non-recurring effects, recurring EBITDA was EUR 81.4
million with an EBITDA margin of 8.5%. Reported EBITDA amounted to EUR 67.6
million (previous year: EUR 84.3 million). The reported EBITDA margin was
7.1% (previous year: 9.0%).
Positive net income despite increased costs for strategic realignment
Despite expenses for launching the strategic realignment programs, the TOM
TAILOR GROUP reports a positive net income for the year under review. The
reported net income for the period was EUR 0.1 million (previous year: EUR
10.8 million), while the recurring net income came in at EUR 14.3 million
(previous year: EUR 21.1 million). This resulted in recurring earnings per
share (EPS) of EUR 0.37 (previous year: EUR 0.68), and reported EPS of EUR
-0.18 (previous year: EUR 0.28).
Group achieves free cash flow of EUR 13.1 million
Cash flow from operating activities decreased to EUR 49.3 million (previous
year: EUR 70.3 million), mainly as a result of the lower net result.
Despite large investments, the TOM TAILOR GROUP achieved a positive free
cash flow (defined as cash flow from operations less investments and
interest expenses) amounting to EUR 13.1 million (previous year: EUR 37.8
million).
Net debt at year-end came in higher as compared to the prior year period,
at EUR 217.4 million (previous year: EUR 202.9 million). This primarily
reflected the increased utilization of long-term credit facilities and high
investments. The equity ratio was 27.4% (31 December 2014: 30.3%).
Outlook for 2016: Focus on increased productivity for retail space and
reduced costs
Rapid structural changes in the textile industry will continue in 2016.
With the project POLE POSITION and the CORE program, the Group has laid the
foundation for addressing these changes in a targeted and consistent
manner. The aims of the related initiatives are to increase the
productivity of retail space, accelerate processes, improve efficiency and,
above all, to lower the cost base. In particular this will be achieved by
decreasing personnel costs and optimizing all material costs, including
those for rent, freight and logistics. Consequently, the Company will
review its existing store network and slow down the expansion of retail
space. It plans to close 80 to 100 stores in 2016, while opening up to 30
new locations. In response to the increasing importance of e-commerce, the
Group plans to accelerate the expansion of its online sales and services
and to coordinate its stationary sales activities more closely with its
e-commerce offerings.
Assuming a strong dynamic in the core markets and with the strategic
realignment going ahead, the Management Board expects to achieve a moderate
increase in Group sales in the current fiscal year. On the income side, the
two programs the Group has launched are expected to begin generating
positive results from the end of 2016, with their full impact being felt by
the end of 2018. Consequently, the Management Board expects recurring
EBITDA to remain steady in 2016.
KEY FIGURES FOR THE GROUP
in EUR million 2015 2014 Change in %
Sales 955.9 932.1 2.5
TOM TAILOR Retail 289.1 275.5 4.9
TOM TAILOR Wholesale 341.0 331.7 2.8
BONITA 325.8 324.9 0.3
Gross profit 535.3 531.8 0.7
Gross profit margin in % 56.0 57.0
Recurring EBITDA 76.3 87.2 -12.5
Recurring EBITDA margin in % 8.0 9.4
One-off items 8.7 3.0
EBITDA 67.6 84.3 -19.8
EBITDA margin in % 7.1 9.0
Recurring net result for the period 14.3 21.1 -32.3
Adjusted earnings per share (in EUR) 0.37 0.68 -45.1
One-off items including deferred taxes 14.2 10.4 37.4
Net result for the period 0.1 10.8 -99.3
Earnings per share (in EUR) -0.18 0.28 >-100
Cash flow from operating activities 49.3 70.3 -30.0
Cash flow from investments -24.9 -20.5 -21.5
31.12.2015 31.12.2014 Change in %
Equity 225.5 239.2 -5.7
Equity ratio (in %) 27.4 30.3
Cash and cash equivalents 50.5 36.9 36.8
Net debt 217.4 202.9 7.1
Net debt / recurring EBITDA 2.8 2.3
Points of sale 31.12.2015 31.12.2014 Absolute change
Retail stores 1,486 1,395 91
Franchise stores 203 206 -3
Shop-in-shops 2,956 2,686 270
About TOM TAILOR GROUP
TOM TAILOR GROUP is an international fashion and lifestyle company offering
stylish apparel and accessories in the medium price range through its
umbrella brands TOM TAILOR and BONITA. The TOM TAILOR umbrella brand
comprises the brands TOM TAILOR, TOM TAILOR Denim, and TOM TAILOR
CONTEMPORARY Women. These high-quality collections are aimed at customers
between 0 and 40. BONITA, one of Germany's leading fashion brand producers
and retailers, has been a part of the TOM TAILOR GROUP since August 2012.
BONITA sells menswear and womenswear collections for the over-40 age group.
The TOM TAILOR brand is marketed through the retail and wholesale segments,
and thus through single-label stores as well as wholesale partners. At the
end of December 2015, these comprised 460 TOM TAILOR stores and 203
franchise stores, 2,956 shop-in-shops and around 8,400 multi-label points
of sale. The brand is present in more than 35 countries.
BONITA has more than 1,026 retail stores and now has more than eight
shop-in-shop spaces.
The collections of both brands are also available through their respective
online shops.
Further information is also available at www.tom-tailor-group.com and
www.bonita.eu
Media and investor contact
Felix Zander
Head of Investor Relations & Corporate Communications
TOM TAILOR GROUP
Phone: +49 (0) 40 58956-449
E-Mail: felix.zander@tom-tailor.com
Erika Kirsten
Manager Corporate Communications
TOM TAILOR GROUP
Phone: +49 (0) 40 58956-420
Email: erika.kirsten@tom-tailor.com
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17.03.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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-group.com
ISIN: DE000A0STST2
WKN: A0STST
Listed: Regulated Market in Frankfurt (Prime Standard), Hamburg;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hanover, Munich, Stuttgart; Terminbörse EUREX
End of News DGAP News Service
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446055 17.03.2016
DGAP-News: TOM TAILOR GROUP confirms figures for the fiscal year 2015 and steps up strategic realignment
| Source: EQS Group AG