Home / Knowledge / News / Apparel/Garments / Ahlers fiscal 2007/2008 result impacted by exchange rate differences
Ahlers fiscal 2007/2008 result impacted by exchange rate differences
09
Feb '09
Ahlers AG, the menswear company, released its first preliminary figures for the 2007/2008 annual accounts. German menswear company Ahlers saw sales rise by 3.2 percent to EUR 268 million (previous year: EUR 260 million) in the financial year 2007/2008. This growth is primarily attributable to the premium segment, which comprises Pierre Cardin, Baldessarini and Otto Kern and reported an impressive 11 percent increase in sales. The premium segment now accounts for 47 percent of total Group sales (previous year: 43 percent).

During the financial year the company systematically expanded the product offering of Pierre Cardin and achieved incremental retail distribution of knitwear, shirts and suits in addition to the brand's traditional strength in jeans. As for Baldessarini, the company launched Baldessarini Black, a high-quality line positioned below the luxury collection, which sold well in its initial year. Going forward, sales will be further stimulated by the recently announced eyewear partnership between Baldessarini and Rodenstock.

The regional breakdown shows that the sales growth was achieved in the international markets; the trend was led by eastern Europe where sales rose by 19 percent but was also supported by western Europe where sales were up 2 percent on the previous year. Following a weak fourth quarter 2007/2008, sales in Germany declined slightly by 2 percent.

The weak fourth quarter sales (-7 percent) were a key contributor to the 20 percent decline in EBIT for the year. While EBIT for the first nine months was still up on the previous year's figure, the preliminary 2007/2008 EBIT (adjusted for extraordinary factors) came in at EUR 7.8 million.

As already announced in October, Ahlers has launched a comprehensive cost cutting programme which will deliver a high single-digit million amount in savings already during the current financial year 2008/2009. Implementation of the programme has proceeded as scheduled. All redundancy and social plans were completed, and the required notices of termination given, already last year. At EUR 4.4 million, the non-recurrent charges remained within expectations and were provisioned for in the 2007/08 accounts. Towards the end of the year, profitability was additionally impacted by the unexpectedly rapid depreciation of the Polish zloty which put a EUR 1.8 million dent in the company's result.

After provisions for redundancy compensations, exchange rate losses, interest and taxes, Ahlers is reporting a net result of EUR 0.3 million (previous year: EUR 9.7 million) which is below management's expectations. At year-end, the Ahlers Group's cash and equivalent holdings remained positive and the equity ratio stood at a good 50 percent. The comfortable financial position should allow to pay out a satisfactory dividend.

Ahlers AG is a leading listed manufacturer of men's fashion in Europe. This innovative and well-capitalised company looks back on almost ninety years of swift and flexible adjustment to the requirements of the times and the markets.

Ahlers AG


Must ReadView All

Textiles | On 19th Aug 2017

New fabric interfaces to interact with computers

As computer capabilities evolve, new fabric-based interfaces are...

Textiles | On 19th Aug 2017

Brazilian cotton prices drop in first fortnight of August

Cotton prices dropped in the Brazilian market in the first fortnight...

Apparel/Garments | On 19th Aug 2017

Target to acquire Grand Junction for faster deliveries

Target Corporation has announced that it has agreed to acquire Grand...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Wendell Rodricks
Wendell Rodricks

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

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

August 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search