DGAP-News: TOM TAILOR Holding AG: TOM TAILOR GROUP returns

DGAP-News: TOM TAILOR Holding AG / Key word(s): Preliminary Results/Miscellaneous TOM TAILOR Holding AG: TOM TAILOR GROUP returns to profitability in 2014 with recurring net income of EUR 21.1 million 19.02.2015 / 07:31 --------------------------------------------------------------------- Preliminary results for the fiscal year 2014 - TOM TAILOR GROUP increases recurring net income from EUR 1.7 million to EUR 21.1 million - Group achieves positive reported net income of EUR 10.8 million before non-controlling interests (previous year: EUR -16,2 million) and EUR 7.2 million after non-controlling interests (previous year: EUR -21.3 million) - Recurring EBITDA up 13% to EUR 87.2 million and reported EBITDA up 31.4% to EUR 84.3 million - Recurring and reported EBITDA margins increased to 9.4% (previous year: 8.5%) and 9.0% (previous year: 7.1%), respectively - Recurring and reported earnings per share (after non-controlling interests) rose from EUR -0.14 to EUR 0.68 and from EUR -0.87 to EUR 0.28, respectively - Operating cash flow increased from EUR 59.7 million to EUR 70.3 million, free cash flows rose from EUR 20.9 million to EUR 31.8 million Hamburg, 19 February 2015. TOM TAILOR GROUP pushed ahead with its profitable growth course in the fiscal year 2014 and achieved the targets set. Despite a difficult market environment, the Group increased its sales to EUR 932.1 million (previous year: EUR 907.2 million) and thus came in at the upper end of the target range of EUR 925 million to EUR 935 million. With a 9.1% increase in sales, TOM TAILOR was the driver behind this result. Recurring earnings before interests, taxes, depreciation and amortisation (EBITDA) increased by 13.0% over the previous year to EUR 87.2 million (previous year: EUR 77.2 million). This can be primarily ascribed to the sales growth at the TOM TAILOR brand and the improved profitability of BONITA. An increase in the gross profit margin by 2.1 percentage points to 57.1% (previous year: 55.0%) also had a positive impact. For the Group as a whole, the recurring EBITDA margin rose to 9.4% (previous year: 8.5%) and thus came in close to the middle of the target range of 9.2% to 9.7%. The reported EBITDA increased as compared to the previous year by 31.4% to EUR 84.3 million (previous year: EUR 64.1 million), with an EBITDA margin increase up to 9.0% (previous year: 7.1%). "The performance of the TOM TAILOR GROUP in the year under review was generally satisfactory against the backdrop of the overall difficult market development, and represented a further step in the direction of earnings improvement. We will continue to pursue this course with the clear objective of strengthening our competitiveness and further enhancing our profitability," commented Dieter Holzer, Chief Executive Officer of TOM TAILOR Holding AG. TOM TAILOR brand stands its ground in tough market environment The TOM TAILOR wholesale segment continued driving forward its expansion particularly dynamic in the year under review and boosted sales by 9.7% to EUR 331.7 million (previous year: EUR 302.4 million). The recurring EBITDA in this segment rose by 20.1% to EUR 36.4 million (previous year: EUR 30.3 million). The main drivers behind this increase, in addition to the growth in sales, were the further optimisation of procurement and the rise in the gross profit margin to 44.7% (previous year: 43.5%). In 2014, the TOM TAILOR retail segment posted a solid performance in a difficult market environment, especially in the second half of the year. Sales in the retail segment were up by 8.4% to EUR 275.5 million (previous year: EUR 254.1 million). The slight decline in gross profit margin to 58.9% (previous year: 59.7%) reflects the increased promotional activities. The recurring EBITDA, at EUR 25.3 million, remained at the previous year's level (previous year: EUR 25.5 million). Focus on sales quality at BONITA For the BONITA brand, the product design was improved and the quality of sales and profitability enhanced through an intentional reduction in special sales promotions. Compared with the previous year, which was heavily influenced by promotional activities, sales decreased as expected by 7.4% to EUR 324.9 million (previous year: EUR 350.7 million). At the same time, BONITA significantly increased its profitability, as indicated by a 19.6% increase in recurring EBITDA to EUR 25.6 million (previous year: EUR 21.4 million). Major factors behind the increase in profitability included, in particular, the positive trend in the gross profit margin, which increased by 6.6 percentage points in the year under review to 68.1% (previous year: 61.5%). Positive net income and strong free cash flow For the first time since the acquisition of BONITA in 2012, the TOM TAILOR GROUP can again report a positive earnings development for the year under review. The Group's recurring net income increased to EUR 21.1 million in 2014 (previous year: EUR 1.7 million) and the reported net income to EUR 10.8 million (previous year: Group loss of EUR 16.2 million). After deduction of non-controlling interests the Group's reported net income amounted to EUR 7.2 million. The recurring earnings per share (EPS) increased accordingly to EUR 0.68 (previous year: EUR -0.14), while the reported EPS rose to EUR 0.28 (previous year: EUR -0.87). Operating cash flow rose from EUR 59.7 million in the previous year to EUR 70.3 million and free cash flow increased to EUR 31.8 million (previous year: EUR 20.9 million). Excluding the investments of EUR 6 million for the purchase of non-controlling interests in the fourth quarter of 2014, the free cash flow would actually have amounted to EUR 37.8 million. As at 31 December 2014, the net debt of the TOM TAILOR GROUP decreased to EUR 202.9 million (previous year: EUR 218.5 million). The equity ratio for the same period, at 30.3%, was higher than the previous year's level of 29.2%. Thus, the Group reached its long-term target level of over 30%. The complete and audited earnings results for the fiscal year 2014, including the forecast for the current fiscal year, will be presented by the Company on 18 March 2015. PRELIMINARY GROUP FIGURES in EUR million 2014 2013 Change in % Sales 932.1 907.2 2.7 TOM TAILOR Retail 275.5 254.1 8.4 BONITA 324.9 350.7 -7.4 TOM TAILOR Wholesale 331.7 302.4 9.7 Gross profit margin in % 57.1 55.0 2.1 %-Pkt. Recurring EBITDA 87.2 77.2 13.0 Recurring EBITDA margin in % 9.4 8.5 One-off items 3.0 13.1 -77.3 EBITDA 84.3 64.1 31.4 EBITDA margin in % 9.0 7.1 Recurring net result for the period 21.1 1.7 >100 Recurring earnings per share (in EUR)* 0.68 -0.14 >100 One-off items including deferred taxes 10.4 17.9 -42.2 Net result for the period 10.8 -16.2 >100 Earnings per share (in EUR)* 0.28 -0.87 >100 Cash flow from operating activities 70.3 59.7 17.8 Cash outflow from investing activities 21.2 26.9 -21.4 Free Cash Flow 31.8 20.9 *2014 Figures after non-controlling interests 31.12.2014 31.12.2013 Absolute change Equity ratio (in %) 30.3 29.2 Net debt 202.9 218.5 -7.1 Net debt / Recurring EBITDA 2.3 2.8 Point of sale 31.12.2014 31.12.2013 Absolute change Retail stores 1,395 1,364 31 Franchise stores 206 197 9 Shop-in-shops 2,686 2,269 417 About TOM TAILOR GROUP The TOM TAILOR GROUP is an international fashion and lifestyle company offering fashionable casual wear and accessories in the medium price range under the brands TOM TAILOR, TOM TAILOR Denim, TOM TAILOR POLO TEAM, BONITA and BONITA men. Since August 2014, TOM TAILOR has presented a new brand image to the market. By sharpening its core brand, TOM TAILOR is positioning itself as a new urban player, backed by a redefined brand claim, "Life is a game, play it, be confident, dress in style". The TOM TAILOR 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 part of the TOM TAILOR GROUP since August 2012. BONITA sells women's and men's wear collections for the over-40 age group. 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 Telefon: +49 (0) 40 58956-449 E-Mail: felix.zander@tom-tailor.com Erika Kirsten Corporate Communications TOM TAILOR GROUP Telefon: +49 (0) 40 58956-420 E-Mail: erika.kirsten@tom-tailor.com --------------------------------------------------------------------- 19.02.2015 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. The DGAP 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: Regulated Market in Frankfurt (Prime Standard), Hamburg; Regulated Unofficial Market in Berlin, Dusseldorf, Hanover, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 324855 19.02.2015