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Tom Tailor net slips into black first time in two years
10
Nov '14
Germany based apparel marketer, Tom Tailor Group posted a smart turnaround in its net income, which slipped into black for the first time in two years, in the first nine months of 2014.

For the first time in two years, Tom Tailor Group net income in the January to September 2014 period, amounted to EUR 1.8 million from a net loss of EUR 13.9 million, in the corresponding period of 2013.

Resultantly, it reported loss of EUR 0.08 per share in the first nine months of 2014 from a loss of EUR 0.78 per share in the first nine months of last year.

Tom Tailor Group said its sales rose by 3.5% to EUR 679.1 million in the first nine months of 2014 from EUR 656 million, in the first nine months of 2013.

“The main growth drivers were the wholesale activities of the Tom Tailor brand which posted sales hike of 9.9%, from a year ago period,” the clothing marketer indicated.

It added, “Warm temperatures in September and decline in customer footfalls, pulled down retail sales significantly, which were partially compensated by the wholesale segment.”

With contribution from all sales channels, reported EBITDA improved significantly and surged 50.4% to EUR 54.9 million versus EUR 36.5 million, from a year ago period.

Reported EBITDA margin in the period under review increased 3 percentage points to 8.1% from 5.6% in the January to September 2013 period.

In the reporting period, gross profit margin expanded 2.1 percent to 56.8% from 54.7%, which it attributed to strong momentum from Bonita brand, whose margin rose 4.9 percent from last year’s first nine months.

Tom Tailor also attributed this positive development to deliberate reduction in promotional sales campaigns and further expansion of direct procurement through its own sourcing channels.

Cash flow from operating activities increased significantly by EUR 36.4 million to EUR 46.8 million against EUR 10.4 million last year.

Tom Tailor was able to significantly cut net debt by EUR 70.3 million to EUR 205.8 million in the first nine months of 2014 from EUR 276.1 million.

In its outlook for the full year 2014 adjusted to unfavourable weather conditions, Tom Tailor Group now expects sales of between EUR 925 million and EUR 935 million.

“We succeeded in further increasing profitability and achieved a positive net income and are pleased that Bonita has contributed to this positive development for the first time,” CEO, Dieter Holzer said. (AR)

Fibre2fashion News Desk - India

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