Home / Knowledge / News / Apparel/Garments / Operating cost for new openings impact Wolford earnings
Operating cost for new openings impact Wolford earnings
17
Sep '12
Wolford Aktiengesellschaft, a publicly listed company on the Vienna Stock Exchange, seamlessly continued its positive sales development in the third and fourth quarters of the previous year during the first quarter of the current fiscal year. The Austrian luxury brand succeeded in increasing sales in the first three months of the 2012/13 fiscal year (May 1 - July 31, 2012) by 4.1 percent from the comparable prior-year period to EUR 33.1 million. This development can be attributed to the targeted expansion of Wolford’s international distribution network, amongst other factors.

The first quarter is traditionally the weakest of all quarterly sales periods due to the seasonality of business development and simultaneously involves disproportionally high costs in relation to sales. For this reason, Wolford’s first-quarter earnings indicators are generally negative, also in growth years. This applies as well to the first quarter of the 2012/13 fiscal year, in which earnings were also impacted by costs relating to the opening of new locations.

The Wolford Group achieved a further rise in sales of 4.1 percent in the first three months of the current fiscal year to EUR 33.1 million (Q1 2011/12: EUR 31.8 million) based on a strong performance in the first quarter of the previous 2011/12 fiscal year, which was characterized by sales growth of 6.5 percent in a quarterly comparison. Wolford’s first-quarter earnings indicators were always negative up until now due to the traditionally disproportionally high costs in relation to sales, which in turn is related to the seasonality of first-quarter business development. 
 
The opening of new boutiques in the second half of the 2011/12 fiscal year featuring correspondingly necessary start-up periods intensified this effect in the first quarter of 2012/13. As a consequence, EBITDA reported by the Wolford Group amounted to EUR -1.3 million in the first quarter of 2012/13 (Q1 2011/12: EUR 0.6 million), and EBIT totaled EUR -3.3 million (Q1 2011/12: EUR -1.3 million). The net result for the period was EUR -3.2 million (Q1 2011/12: EUR -1.8 million).
 
As at the reporting date of July 31, 2012, shareholders’ equity of the Wolford Group amounted to EUR 80.9 million, slightly below the comparable figure of the previous year (July 31, 2011: EUR 81.6 million). The equity-to-asset ratio at the reporting date was 53.0 percent, thus maintaining the high prior-year level (July 31, 2011: 53.2 percent). Net debt in the first three months of 2012/13 totaled EUR 26.6 million (July 31, 2011: EUR 25.6 million), corresponding to a debt/equity ratio (gearing) of 32.9 percent (July 31, 2011: 31.4 percent).
 
 

Must ReadView All

Courtesy: BGMEA

Apparel/Garments | On 27th Feb 2017

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: PT Indonesia Taroko Textile

Textiles | On 27th Feb 2017

Taiwan's Lealea to buy Tarako textile plant in Indonesia

Taiwan based textile manufacturer Lealea Enterprise Company, one of...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search