TOM TAILOR GROUP has enjoyed a dynamic start into the fiscal year 2014. In the first three months of 2014, the Group increased sales of its two retail segments TOM TAILOR and BONITA by 5.1% to EUR 127.6 million.
The TOM TAILOR brand continued its growth course in the retail segment uninterrupted and increased sales by 13.3%. In like-for-like terms, sales increased by 9.6%. The TOM TAILOR retail segment therefore once again distinctly exceeded the general development of the German textile industry, which concluded the first quarter with an increase of 3.0% (source: TW-Testclub 15/2014). With a 28.9% increase in sales, the e-commerce business played a significant role in TOM TAILOR’s dynamic development.
In 2014, activities at BONITA are focused on improving profitability. In the first quarter, there have already been signs of a positive impact on the gross profit margin. By means of adjusted sales strategies and the further shift of sourcing activities towards the company-owned purchasing organization, BONITA significantly increased its gross profit margin from 60.7% in the first quarter of 2013 to 69.3% in the reporting period.
As expected, BONITA’s sales development was however weaker as compared to the previous year. The BONITA brand recorded a 6.3% decline in sales in the first quarter. On a like-for-like basis, sales dropped by 8.7%.
“The current results for the first quarter confirm the targets for our two brands: TOM TAILOR has successfully continued its course of growth. BONITA on the contrary has clearly focused on qualitative and profitable growth, already reporting a first success with its improved gross profit margin. We will continue this path with discipline and vigour,” said Dieter Holzer, Chairman of the Management Board (CEO) of TOM TAILOR Holding AG.
TOM TAILOR GROUP will publish its complete report on the first quarter of 2014 on 08 May 2014.