In the backdrop of a weak economic scenario in Europe, German menswear fashion company Ahelrs AG has posted lower-than-expected preliminary unaudited sales and profit numbers for full year 2012-13.
The company, which is one of the largest publicly traded manufacturers dedicated to men's fashion in Europe, reported a 2.6 per cent dip in sales revenue at 246.7 million euro in the 12 months ended 30 November 2013 from 253.2 million euro in the year ago.
While a shift in sales transactions to December 2013 and one-time expenses hit the company's bottom-line last fiscal, weak demand from neighboring European countries may also be attributed to subdued sales revenue.
Record high joblessness, stalled economic growth, fiscal constraints and tight credit markets have crimped consumer spending in many Eurozone countries, weighing heavily on the region's apparel industry.
However, strong domestic consumption in its home market, Germany, which is seeing acceleration in economic momentum, may continue to support the sales outlook of Ahelrs AG, going forward.
The company, which operates in three segments including Premium Brands, Jeans and Workwear, and Men's and Sportswear, has posted a consolidated net income of 5.6 million euro in the full year 2012-13, which is well below expectations, and lower than the 7.3 million euro it had reported in the previous year.
Looking ahead, the company has expressed a much more positive outlook for this fiscal with an expected improvement in sales performance amid a slightly brighter economic outlook in key European markets.