DGAP-News: TOM TAILOR GROUP: TOM TAILOR on track- BONITA

DGAP-News: TOM TAILOR Holding AG / Key word(s): Preliminary Results TOM TAILOR GROUP: TOM TAILOR on track- BONITA under modification 18.02.2014 / 18:09 --------------------------------------------------------------------- TOM TAILOR GROUP: TOM TAILOR on track- BONITA under modification Preliminary figures for fiscal year 2013 - Sales target clearly achieved with 44% growth to EUR 907.2 million - EBITDA of the TOM TAILOR brands up by about 28% - Recurring EBITDA of TOM TAILOR GROUP below expectations at EUR 77.2 million - Positive free cash flow at EUR 20.9 million Hamburg, 18 February 2014. TOM TAILOR GROUP further expanded its market position in the fiscal year 2013. According to preliminary figures, the Group boosted its sales by 44.1% to EUR 907.2 million (2012: EUR 629.7 million) and reached the upper end of its EUR 890 million to EUR 910 million target range. This increase was in particular driven by the repeatedly strong growth of the TOM TAILOR brands as well as the first-time full-year consolidation of the BONITA brand. TOM TAILOR GROUP increased its recurring earnings before interest, tax, depreciation and amortisation (EBITDA) by 16.1% to EUR 77.2 million (2012: EUR 66.5 million). Despite an increase in the recurring EBITDA of the TOM TAILOR brands by 27.8%, the Group's recurring EBITDA remained below the targeted range of EUR 85 million to EUR 95 million. The reason for this being inventory sales at the end of the fourth quarter 2013, which negatively impacted BONITA's profitability. In addition, the Christmas sales failed to meet expectations. In order to further strengthen the product, design and brand expertise of BONITA and BONITA men, former Chief Product Officer of TOM TAILOR Holding AG, Udo Greiser, was appointed sole Managing Director of BONITA GmbH effective 1 February 2014. He will resign from the Management Board of TOM TAILOR Holding AG. Udo Greiser has extensive knowledge about the market and the company, and will fully concentrate on BONITA going forward, in order to systematically develop the brand. As of 01 March 2014, Daniel Peterburs will succeed him as Management Board member for product development, procurement and licensing at TOM TAILOR Holding AG. Daniel Peterburs studied textile and clothing management and has been with the Company since 2008, most recently as Division Head of the product line TOM TAILOR Denim Male. 'We covered an incredible - and at times quite rocky - path in 2013, the year of integration. Our TOM TAILOR brands have performed extremely well and continued unintermittent on their profitable growth course. However, as for BONITA, we had to implement more substantial measures in the last quarter of the year so as to ensure that BONITA will be able to deliver the expected level of profitability in the next one to two years,' said Dieter Holzer, Chairman of the Management Board (CEO) of TOM TAILOR Holding AG. 'Our Product and Design Team was completed in November 2013 and will now leverage on the existing potential of BONITA and BONITA men under the leadership of Udo Greiser.' TOM TAILOR brand outperforms the market once again The TOM TAILOR brands increased their sales in the expired fiscal year by 17.0% to EUR 556.5 million (2012: EUR 475.8 million), while its EBITDA margin rose by 80 basis points from 9.2% to 10.0%. Sales in the TOM TAILOR retail segment went up by 23.5% to EUR 254.1 million (2012: EUR 205.8 million). Key growth drivers were the expansion of the store network by 39 to 354 stores and the productivity increase in retail space. On a like-for-like basis, the segment's sales in 2013 rose by a pleasing 5.9%. Like-for-like growth in the fourth quarter came to 2.9%. Thus, in 2013 the TOM TAILOR retail segment once again outperformed the German textile industry as a whole, which closed the year at -2% (Source: TW Testclub 02/2014). The TOM TAILOR wholesale segment increased its sales considerably by 12.1% to EUR 302.4 million (2012: EUR 269.9 million). The EBITDA margin grew from 8.6% to 10.0%. The number of shop-in-shop sales areas rose in 2013 by 238 to 2,269 and the number of franchise stores by 22 to 197. Positive development of BONITA delayed The BONITA brand, which is sold through 1,010 own retail stores as well as the in June launched e-shop, achieved sales of EUR 350.7 million in 2013 (August to December 2012: EUR 153.9 million - BONITA was consolidated for the first time from August 2012). The foundations for profitable growth have been laid with a range of implemented and completed measures. The BONITA e-shop performed well following its launch in June 2013 and delivered its first sales contribution with a low single-digit million figure. On a like-for-like basis, sales at BONITA decreased for the full year by 4.6% and in the fourth quarter of 2013 by 3.5%. Due to poor weather conditions in the first half of the year and enforced sales promotions, particularly in the fourth quarter, BONITA remained below expectations. Gross profit margin rises to 55.0% - recurring EBITDA increases by 16.1% The Group's gross profit margin grew from 52.9% to 55.1% year-on-year. This improvement is primarily attributable to the increase in retail share, the further expansion of the Company's own purchasing company for the TOM TAILOR brands and the initial effects of the relocation of BONITA's procurement activities to Asia. In the fiscal year 2013, earnings development was influenced by three factors: a sector-wide weak first half as a result of poor weather conditions, integration costs and the unexpectedly weaker final quarter at BONITA. The Group's recurring EBITDA increased by 16.1% to EUR 77.2 million (2012: EUR 66.5 million), on the back of the positive performance of the TOM TAILOR brand. The targeted range of EUR 85 million to EUR 95 million was not reached, for the most part on account of the weaker earnings development at BONITA. Positive contributions from the sale of collections manufactured under the new product development process were offset by enforced sales promotions. Consequently, BONITA delivered a recurring EBITDA of EUR 21.4 million for the full year (August to December 2012: EUR 22.8 million). In contrast, the TOM TAILOR brands boosted their recurring EBITDA by 27.8% to EUR 55.8 million (2012: EUR 43.7 million). The Group's recurring EBITDA margin came to 8.5% (2012: 10.6%). The reported Group EBITDA rose by 16.5% to EUR 64.1 million (2012: EUR 55.0 million). The reported EBITDA margin amounted to 7.1% (2012: 8.7%). The financial result stood at EUR 18.3 million (2012: EUR 15.8 million) and essentially reflected the full-year impact of higher interest expenses incurred to finance the takeover of BONITA. The Group's net result for the period, primarily adjusted for one-off items from the integration and refinancing of BONITA, came to EUR 1.7 million (2012: EUR 18.9 million). Recurring earnings per share decreased to EUR -0.14 (2012: EUR 0.81). The reported net result for the period totalled at EUR -16.2 million (2012: EUR 3.1 million), while reported earnings per share came to EUR -0.87 (2012: EUR 0.01). Positive free cash flow and lower net debt Cash flow from operating activities rose to EUR 59.7 million (2012: EUR 20.4 million). The cash outflow from investing activities dropped to EUR 26.9 million from EUR 35.6 million in the previous year (without consideration of the BONITA acquisition), which largely reflects the takeover and integration of BONITA. The free cash flow, as a result of operating cash flow minus capital expenditure and interest, increased by EUR 47.9 million to EUR 20.9 million (2012: EUR -27.0 million), notably due to the strong development of the operating cash flow. Compared to the previous year, net debt fell by 11.8% to EUR 218.5 million (2012: EUR 247.8 million). The equity ratio improved to 29.2% as of the reporting date (31.12.2012: 28.4%). For the future, TOM TAILOR GROUP aims to achieve an equity ratio of more than 30%. Outlook: Long-term improvements at BONITA - profitable growth for the Group For the fiscal year 2014, TOM TAILOR GROUP aims at sales of more than EUR 950 million and a recurring EBITDA margin of around 10%. Both brands ought to contribute to this development. 'We have clear priorities for 2014: To press ahead with the qualitative development of BONITA based on the measures implemented since the takeover and to further increase profitability in the TOM TAILOR concept,' explained Dieter Holzer. Further information on the preliminary figures for the fiscal year 2013 is available in an investor presentation at: http://ir.tom-tailor-group.com/cgi-bin/show.s...ame=tomtai lor&language=English. TOM TAILOR GROUP will publish its complete, audited earnings figures for the fiscal year 2013 on 25 March 2014. PRELIMINARY GROUP FIGURES Change In EUR million 2013 2012 in % Sales 907.2 629.7 44.1 TOM TAILOR retail 254.1 205.8 23.5 BONITA 350.7 153.9 n/a TOM TAILOR wholesale 302.4 270.0 12.1 Gross profit 499.0 333.2 49.8 Gross profit margin in % 55.0 52.9 Recurring EBITDA 77.2 66.5 16.1 Recurring EBITDA margin in % 8.5 10.6 One-off items 13.1 11.5 13.9 EBITDA 64.1 55.0 16.5 EBITDA margin in % 7.1 8.7 Recurring EBIT 28.5 34.1 -16.4 Recurring EBIT margin in % 3.1 5.4 One-off items (excluding deferred taxes) 22.0 17.9 22.9 thereof amortisation of the TOM TAILOR/BONITA purchase price allocation 9.0 6.4 thereof BONITA acquisition 0 14.8 thereof BONITA negative goodwill 0 -11.1 thereof BONITA integration 10.7 4.4 EBIT 6.5 16.2 -59.9 EBIT margin in % 0.7 2.6 Recurring net result for the period 1.7 18.9 -91.0 Recurring earnings per share (in EUR)* -0.14 0.81 > -100 One-off items including deferred taxes 17.9 15.8 13.3 thereof purchase price allocation 6.3 4.5 Net result for the period -16.2 3.1 > -100 Earnings per share (in EUR)* -0.87 0.01 Cash flow from operating activities 59.7 20.4 > 100 Cash outflow from investing activities 26.9 35.6 27.0 * 2012: dilutive effect from cash and capital increase in kind in Q3 31.12.2013 31.12.2012 Change in % Total assets 759.6 771.2 -1.5 Equity 221.7 218.9 1.3 Equity ratio (in %) 29.2 28.4 Cash and cash equivalents 47.1 53.4 -11.8 Net debt 218.5 247.8 -11.8 Net debt/recurring EBITDA 2.8 3.7 Absolute Points of sale 31.12.2013 31.12.2012 change Retail stores 1,364 1,297 67 Franchise stores 197 175 22 Shop-in-shops 2,269 2,031 238 About TOM TAILOR GROUP TOM TAILOR GROUP is an international fashion and lifestyle company offering stylish casual wear and accessories in the medium price range through its brands TOM TAILOR and BONITA. The TOM TAILOR brand comprises the brands TOM TAILOR CASUAL, 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 TOM TAILOR GROUP since August 2012. BONITA sells menswear and womenswear collections for the over-40 age group. In the 2013 fiscal year, the TOM TAILOR GROUP recorded sales of EUR 907.2 million, of which EUR 350.7 million was generated by BONITA. The Group has 1,364 own stores in the retail segment. 1,010 of these are BONITA and BONITA men stores and 354 are TOM TAILOR stores. The TOM TAILOR brand is also sold via wholesale partners. At the end of 2013, these comprised 197 franchise stores, 2,269 shop-in-shops and around 7,500 multi-label points of sale. 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 and Corporate Communications TOM TAILOR GROUP Phone.: +49 (0) 40 58956-449 Email: felix.zander@tom-tailor.com Erika Kirsten Corporate Communications TOM TAILOR GROUP Phone.: +49 (0) 40 58956-420 Email: erika.kirsten@tom-tailor.com End of Corporate News --------------------------------------------------------------------- 18.02.2014 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 --------------------------------------------------------------------- 253167 18.02.2014