DGAP-News: TOM TAILOR GROUP doubles sales and operational

DGAP-News: TOM TAILOR Holding AG / Key word(s): Development of Sales TOM TAILOR GROUP doubles sales and operational result in the first six months of 2013 08.08.2013 / 07:30 --------------------------------------------------------------------- TOM TAILOR GROUP doubles sales and operational result in the first six months of 2013 - Group sales up 95.9% to EUR 407.0 million - TOM TAILOR umbrella brand: Growth driver with an increase in sales of 17.7% - Recurring EBITDA more than doubles to EUR 25.8 million - Gross profit margin increases by 5.7 percentage points to 56.2% - Outlook adjusted for the 2013 financial year Hamburg, 08 August 2013. TOM TAILOR GROUP succeeded in holding its own in the first half-year despite difficult underlying conditions. The Company increased sales by 95.9% from EUR 207.8 million to EUR 407.0 million. This increase was the result of the organic growth of the TOM TAILOR umbrella brand, with sales rising from EUR 36.7 million to EUR 244.5 million. Moreover, the BONITA umbrella brand contributed EUR 162.5 million to Group sales in the first six months of the year. The recurring earnings before interest, taxes, depreciation and amortisation (EBITDA) went up from EUR 11.8 million in the previous year to EUR 25.8 million. This constitutes a rise of approximately 118.6%. 'We are pleased that our TOM TAILOR umbrella brand continued to grow during the first half of the year, bucking both, market trends and the weather. As expected, BONITA was unable to detach itself from the difficult conditions in the market,' said Dieter Holzer, CEO of TOM TAILOR Holding AG. 'We are convinced that we can bring BONITA back on track for success in the second half of 2013,' emphasised Dieter Holzer. TOM TAILOR umbrella brand continues to grow successfully TOM TAILOR GROUP doubles its sales in the first half-year to EUR 407.0 million (previous year: EUR 207.8 million). In the second quarter, Group sales climbed to EUR 210.1 million (previous year: EUR 104.3 million). Thereby, it must be considered that BONITA was consolidated for the first time in August 2012. The Group's growth was driven in particular by the TOM TAILOR umbrella brand across all channels. Sales in the TOM TAILOR retail segment increased by 26.1% to EUR 107.8 million (previous year: EUR 85.5 million). Within also TOM TAILOR's e-commerce business continued to grow dynamically, with a sales increase of 14.9% to EUR 17.7 million (previous year: EUR 15.4 million). In the second quarter, TOM TAILOR retail achieved a like-for-like increase in sales of 13.1%. This meant that the retail segment grew for the eighteenth quarter in a row in comparable sales areas. Like-for-like growth in the first half-year came to 7.9%, thereby significantly exceeding the industry average. The TOM TAILOR wholesale segment increased sales by 11.8% from EUR 122.3 million to EUR 136.7 million in the reporting period. Since 31 December 2012, the segment increased the number of shop-in-shops by net 71 to 2,102 and of franchise stores by net five to 180 stores. The BONITA umbrella brand contributed sales of EUR 162.5 million to the Group's overall sales. This corresponds to a fall of 6.3% year-on-year. Sales declined by 5.0% in the second quarter and by 9.6% in the first half-year on a like-for-like basis. Gross margin and EBITDA trending positively TOM TAILOR GROUP improved its gross margin by 5.7 percentage points to 56.2% in the first half-year (previous year: 50.5%). TOM TAILOR's margin rose to an even more impressive 58.6% in the second quarter (previous year: 53.5%). In particular, this is attributable to a higher share of retail sales in overall sales and the higher share of direct purchases made through the Company's own procurement organisation. The wider gross margin and a disproportionately low development in other operating expenses had a positive effect, meaning that the EBITDA adjusted for special items jumped by 118.6% to EUR 25.8 million (previous year: EUR 11.8 million). The adjusted EBITDA margin climbed to 6.3% (previous year: 5.7%). The reported EBITDA came to EUR 17.3 million (previous year: EUR 8.3 million) and reflects non-recurring expenses incurred in conjunction with the integration of BONITA of EUR 7.1 million. The recurring financial result amounted to EUR -5.8 million (previous year: EUR -3.3 million). The reason for this development can be found in higher interest expenses for financing the takeover of BONITA and the seasonally higher drawdown of credit lines. The reported financial result also includes expenses amounting to EUR 2.1 million (previous year: EUR 1.7 million) for the refinancing carried out in 2012. As a result, the reported financial result comes to EUR -7.9 million (previous year: EUR -5.0 million). Net debt increased for seasonal reasons by 9.3% to EUR 270.8 million compared to the end of 2012 (previous year: EUR 247.8 million). Cash flow from operating activities rose by EUR 13.3 million to EUR 4.5 million in the first half of the year (previous year: EUR -8.8 million). TOM TAILOR GROUP's recurring net result for the period came to EUR -3.4 million (previous year: EUR -1.9 million). Recurring earnings per share therefore amounted to EUR -0.14 (previous year: EUR -0.12). The reported net result for the period totalled to EUR -13.9 million (previous year: EUR -7.2 million), while earnings per share stood at EUR -0.25 (previous year: EUR -0.41). BONITA's potential yet to be reached In the first half-year, the Group implemented a 16-week shorter product development process at BONITA. This means that the time between design and delivery of the merchandise in BONITA stores now only comes to between 24 and 28 weeks. The first products from this development process are set to hit stores beginning in autumn 2013. Furthermore, BONITA's procurement is currently being integrated into TOM TAILOR's existing infrastructures. In the future, BONITA will therefore be in the position to react more flexibly to market trends and to supply stores with merchandise that meets customer demands. Moreover, the BONITA e-shop went live in June, meaning that BONITA's products are now also available online. In addition, marketing measures are aimed at strengthening BONITA's brand profile. The Group expects to feel the first positive effects of these measures in the fourth quarter. Management adjusts forecast TOM TAILOR GROUP rates the business outlook for the second half-year as positive based on the current economic and consumption situation. At the same time however, the Company does not expect to be able to compensate fully for the negative impact caused by weather in the first half of the year. The unfavourable weather conditions and premature sales also affected the business performance of TOM TAILOR GROUP. As a result, the Management Board now expects to generate Group sales of EUR 890 to EUR 910 million and a recurring EBITDA of EUR 85 to EUR 95 million in the 2013 financial year. The Company's forecast this year also accounts for considerable growth impulses in the industry's traditionally strong fourth quarter. KEY FIGURES FOR THE GROUP Q2 Q2 Change H1 H1 Change EUR million 2013 2012 in % 2013 2012 in % Sales 210.1 104.3 101.4% 407.0 207.8 95.9% TOM TAILOR retail 59.4 45.5 30.5% 107.8 85.5 26.1% BONITA 89.4 n/a n/a 162.5 n/a n/a TOM TAILOR wholesale 61.3 58.8 4.3% 136.7 122.3 11.8% Gross profit 123.1 55.8 120.6% 228.9 104.9 118.2% Gross profit margin in % 58.6 53.5 56.2 50.5 Recurring EBITDA 15.9 7.2 120.8% 25.8 11.8 118.6% Recurring EBITDA margin in % 7.6 6.9 6.3 5.7 One-off items 4.9 0.1 4800.0% 8.5 3.5 142.9% thereof cost from the acquisition of BONITA 0 0.3 0 2.9 thereof costs from the integration of BONITA 3.8 0 7.1 0 thereof refinancing costs/note loans 0.8 0 0.8 0 thereof other one-off items 0.3 0.3 0.6 0.6 EBITDA 11.0 7.1 54.9% 17.3 8.3 108.4% EBITDA margin in % 5.2 6.8 4.3 4.0 Recurring net result for the period 0.4 0.1 300.0% -3.4 -1.9 -78.9% Recurring earnings per share (in EUR) 0.02 0.01 100.0% -0.14 -0.12 -16.7% One-off items including deferred taxes 5.7 2.1 171.4% 10.5 5.3 98.1% thereof purchase price allocations 1.5 0.8 3.1 1.6 Net result for the period -5.3 -2.0 -165.0% -13.9 -7.2 -93.1% Earnings per share (in EUR)* -0.05 -0.12 -0.25 -0.41 Cash flow from operating activities 15.4 10.4 48.1% 4.5 -8.8 151.1% Cash outflow from investing activities 6.6 5.9 11.9% 14.4 10.5 37.1% 30.06.2013 31.12.2012 Change in % Total assets 766.9 771.2 -0.6 Equity 205.1 218.9 -6.3 Equity ratio (in %) 26.7 28.4 Cash and cash equivalents 43.5 53.4 -18.5 Net debt 270.8 247.8 9.3 Net debt/recurring EBITDA 132.0 113.2 Absolute Points of sale 30.06.2013 31.12.2012 change Retail stores 1,334 1,297 37 Franchise stores 180 175 5 Shop-in-shops 2,102 2,031 71 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 half of 2013, the TOM TAILOR GROUP reported sales of EUR 407.0 million, of which EUR 162.5 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 335 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 Fax: +49 (0) 40 58956-199 Email: felix.zander@tom-tailor.com Erika Kirsten Corporate Communications TOM TAILOR GROUP Phone: +49 (0) 40 58956-420 Fax: +49 (0) 40 58956-199 Email: erika.kirsten@tom-tailor.com End of Corporate News --------------------------------------------------------------------- 08.08.2013 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 --------------------------------------------------------------------- 224780 08.08.2013