DGAP-News: TOM TAILOR GROUP records strong growth in third

DGAP-News: TOM TAILOR Holding AG / Key word(s): Quarter Results TOM TAILOR GROUP records strong growth in third quarter of 2013 07.11.2013 / 07:30 --------------------------------------------------------------------- TOM TAILOR GROUP records strong growth in third quarter of 2013 - Sales up 30.6% in third quarter as a result of growth across all sales channels - EBITDA jumps 52.8% in the nine-month period due to increase in sales and higher gross profit margin - BONITA benefits from shortened lead times - Proceeds of EUR 29.5 million from cash capital increase strengthen capital base Hamburg, 7 November 2013. TOM TAILOR GROUP's sales and earnings rose in the third quarter of 2013. Between July and September, the Company boosted its sales by 30.6% to EUR 249.0 million and increased its recurring earnings before interest, taxes, depreciation and amortisation (EBITDA) to EUR 21.4 million (previous year: EUR 19.1 million). All of the Group's sales channels contributed to the sales growth in the third quarter. The BONITA umbrella brand recorded like-for-like sales growth of 5.3% for the first time since it was taken over by TOM TAILOR GROUP. As announced with the capital increase at the end of October, the Group reported a sales increase of 64.6% to EUR 656.0 million in the first nine months. The recurring EBITDA jumped 52.8% to EUR 47.2 million. 'The benefits of further integrating BONITA and TOM TAILOR became visible for the first time in the third quarter. Our retail business grew significantly on a like-for-like basis, outperforming the overall market trend. Thanks to our efficient platform, we are in an excellent position to take full advantage of the upcoming Christmas shopping season, while our stronger equity base will enable us to pursue our growth course at the same time,' said Dieter Holzer, Chairman of the Management Board (CEO) of TOM TAILOR Holding AG. TOM TAILOR umbrella brand enjoys solid growth on a like-for-like basis and as a result of sales area expansion The expansion of the TOM TAILOR umbrella brand had a positive impact on sales across all sales channels. In the first nine months, the TOM TAILOR retail segment grew its sales by 28.4% to EUR 174.9 million (previous year: EUR 136.2 million). The like-for-like increase in sales amounted to 7.8%, while the overall market declined 2.0%. TOM TAILOR has achieved growth for its 19th consecutive quarter. The brand's dynamic e-commerce business also contributed with sales up 19.1% to EUR 28.0 million (previous year: EUR 23.5 million). Supported by the TV advertising campaign, e-commerce sales even increased 27.2% in the third quarter. Despite the on-going challenges in the wholesale market, the Company boosted sales in its wholesale segment by 10.7% to EUR 226.9 million in the first nine months (previous year: EUR 205.0 million). Since the beginning of the year, TOM TAILOR has increased the number of shop-in-shops by 198 to 2,229 and franchise stores by eleven to 186. Shorter lead times take effect at BONITA Sales in the BONITA segment, which comprises its retail stores and the e-shop launched at the beginning of June, came to EUR 254.2 million in the first nine months. Bolstered by the positive effects of the shorter lead times and the new design process, like-for-like sales grew in the third quarter by 5.3% for the first time since the BONITA takeover. Gross profit margin increases by 4 percentage points and EBITDA improves further The Group's gross profit margin improved 4.0 percentage points to 54.7% in the first nine months (previous year: 50.7%), primarily as a result of the higher share of retail sales and a further increase in direct sourcing through the Group's own procurement unit in Asia. Adjusted for one-off items from the takeover and integration of BONITA, EBITDA rose 52.8% to EUR 47.2 million (previous year: EUR 30.9 million). The increase in sales and the improved gross profit margin were countered by higher operating expenses related to the Group's further expansion of its retail business and higher marketing costs. The recurring EBITDA margin came to 7.2% (previous year: 7.8%). Reported EBITDA climbed 47.8% in the first nine months, from EUR 24.7 million in the previous year to EUR 36.5 million as of 30 September 2013. The recurring financial result amounted to EUR -9.6 million (previous year: EUR -7.0 million). The figure reflects higher interest expenses for financing the takeover of BONITA and a seasonal increase in the utilisation of credit lines. The reported financial result came in at EUR -12.5 million (previous year: EUR -9.5 million) and includes additional non-cash expenses of EUR 2.8 million (previous year: EUR 2.4 million) for the refinancing carried out in 2012. Operating cash flow substantially higher Cash flow from operating activities rose considerably by EUR 45.1 million to EUR 10.4 million (previous year: EUR -34.7 million). Apart from the transaction costs included in the previous year's figure, the further optimized working capital management at BONITA compared with the previous year had a positive effect in particular. TOM TAILOR GROUP's recurring net result for the first nine months of 2013 came to EUR 0.2 million (previous year: EUR 5.5 million). Recurring earnings per share therefore amounted to EUR 0.01 (previous year: EUR 0.21). The reported net result for the period fell to EUR -13.9 million (previous year: EUR -3.5 million), while reported earnings per share stood at EUR -0.57 (previous year: EUR -0.19). Strengthened equity base to continue growth course TOM TAILOR GROUP's net debt totalled to EUR 276.1 million as of 30 September 2013, compared to EUR 279.4 million in the previous year. The equity ratio amounted to 26.1% at the end of the reporting period (previous year: 28.4%). TOM TAILOR GROUP carried out a cash capital increase at the end of October to give itself the flexibility and solid capital base needed to pursue its growth course. The Company issued approximately 1.8 million new shares to institutional investors in Germany and abroad, thereby generating gross proceeds of EUR 29.5 million. The funds will primarily be used to reduce gearing and to strengthen the equity ratio, which will be brought back into atarget range of between 30% and 35% going forward. Outlook reiterated for the full year 2013 Based on its good performance in the third quarter and under the premise of a stable market environment, TOM TAILOR GROUP is confidently looking ahead to the remaining weeks of 2013 and the industry's all-important Christmas shopping season. The Company is thus reiterating its forecast, which it adjusted slightly in August: For the full year 2013, the Group expects to record sales of between EUR 890 and 910 million and a recurring EBITDA of between EUR 85 and 95 million. Chan- Chan- KEY FIGURES FOR THE GROUP Q3 Q3 ge in 9M 9M ge in in EUR million 2013 2012 % 2013 2012 % Sales 249.0 190.7 30.6 656.0 398.5 64.6 TOM TAILOR Retail 67.1 50.6 32.6 174.9 136.2 28.4 BONITA 91.7 57.3 60.0 254.2 57.3 >100.0 TOM TAILOR Wholesale 90.2 82.8 8.9 226.9 205.0 10.7 Gross profit 129.8 97.1 33.7 358.7 202.0 77.6 Gross profit margin in % 52.1 50.9 54.7 50.7 Recurring EBITDA 21.4 19.1 12.0 47.2 30.9 52.8 Recurring EBITDA margin in % 8.6 10.0 7.2 7.8 One-off items 4.4 4.5 -2.2 17.3 10.4 66.3 thereof amortisation of the TOM TAILOR/BONITA purchase price allocation 2.2 1.9 6.6 4.2 thereof costs from the BONITA takeover 0 11.9 0 14.8 thereof costs from the integration of 2.1 -11.1 9.2 -11.1 BONITA thereof refinancing costs 0.1 0.4 0.9 0.4 EBITDA 19.2 16.4 17.1 36.5 24.7 47.8 EBITDA margin in % 7.7 8.6 5.6 6.2 Recurring net result for the period 3.6 7.4 -51.4 0.2 5.5 -96.4 Recurring earnings per share (in EUR)* 0.15 0.24 -37.5 0.01 0.21 -95.2 One-off items including deferred taxes 3.5 3.7 -5.4 14.1 9.0 56.7 thereof purchase price allocation 1.5 1.3 4.6 2.9 Net result for the period 0 3.7 -100.0 -13.9 -3.5 -297.1 Earnings per share (in EUR)* 0 0.17 -0.57 -0.19 Cash flow from operating activities 5.9 -25.9 >100.0 10.4 -34.7 >100.0 Cash outflow from investing activities 4.7 8.0 -41.3 19.0 18.5 2.7 * 2012: dilutive effect from cash and capital increase in kind in Q3 30.09.2013 31.12.2012 Change in % Total assets 768.7 771.2 -0.3 Equity 200.8 218.9 -8.3 Equity ratio (in %) 26.1 28.4 Cash and cash equivalents 33.4 53.4 -37.5 Net debt 276.1 247.8 11.4 Gearing (in %) 137.5 113.2 Point of sale 30.09.2013 31.12.2012 Absolute change Retail stores 1,346 1,298 48 Franchise stores 186 175 11 Shop-in-shops 2,229 2,031 198 About TOM TAILOR GROUP The TOM TAILOR GROUP is an international fashion and lifestyle company offering stylish casual wear 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 POLO TEAM. Its collections are aimed at customers aged between 0 and 40 and are marketed in more than 35 countries via its wholesale and retail segments. 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 mens- and womenswear collections for the over-40 age group. In the first nine months of 2013, the TOM TAILOR GROUP reported sales of EUR 656.0 million, of which EUR 254.2 million was generated by BONITA. The Group has approximately 1,300 own stores in the retail segment. About 1,000 of these are BONITA and BONITA men stores, and 340 are TOM TAILOR stores. The TOM TAILOR brand is also sold via retail partners. 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 Corporate Communications TOM TAILOR GROUP Phone: +49 (0) 40 58956-420 E-Mail: erika.kirsten@tom-tailor.com End of Corporate News --------------------------------------------------------------------- 07.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg; Freiverkehr in Berlin, Düsseldorf, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 238372 07.11.2013