Tom Tailor brand’s retail sales increased 8.4 per cent in Q1 2016 to €63.9 million as compared to €58.9 million in the same quarter last year. The brand’s wholesale sales grew 3.3 per cent this quarter to €87.3 million as compared to €84.5 previously.
Despite a difficult market, Tom Tailor’s rise in wholesale sales has been attributed to the rise in shop-in-shops by 189 to 3,145 since the end of 2015. The retail segment of the umbrella brand achieved a strong sales growth due to a year-on-year increase in the number of retail stores, which grew by 77.
Tom Tailor wholesale accounted for 39.9 per cent of group sales (previous year: 39.2 per cent). Retail segment accounted for 29.2 per cent of group sales (previous year: 27.3 per cent).
Commenting on the results, Dieter Holzer, CEO of Tom Tailor Holding said, “The first months of 2016 were coined by key measures within our ‘CORE’ efficiency program, on one hand, and growth initiatives in the digital segment, on the other.”
“2016 will be a year of transformation. We are facing up to this challenge with commitment, a strong team and confidence that we can get the Tom Tailor Group back on the course of profitable growth,” he added.
The group expects the accelerating structural change in textile industry to continue gaining momentum in the coming quarters. This will bring both challenges and opportunities. (MCJ)
Fibre2Fashion News Desk - India