Wolford: sales rise 9.1% in first six months of 2015-16 fiscal year
today Dec 17, 2015
Wolford closed the first six months of the fiscal year in the same way it started it: with revenues increasing but also recording a loss. The Austrian hosiery and underwear label began to reap the fruits of its restructuring in the 2014-2015 fiscal year, by recording a profit for the first time since 2012. And in the first six months of the 2015-2016 fiscal year, Wolford saw its revenues rise by 9.1% (3.1% after adjustments), reaching €79.24 million. At the same time however, it recorded losses of €0.90 million (compared to a €1.38 million profit in like-for-like operations the previous year).
These results must however be assessed in context. Wolford's EBIT was theoretically in the red, with a €0.28 million loss, compared to a €3.17 million gain in 2014-2015. Yet, after adjustments to allow for one-off effects, EBIT actually recorded a €2.63 gain.
Wolford estimated that such encouraging results were chiefly due to retail operations, which recorded a growth of at least 7% both in absolute and like-for-like terms.
As for e-commerce and wholesale operations, they are both performing well, with revenue increases respectively of 63.9% for the former and 5.2% for the latter. The label attributed wholesale growth to a change in delivery dates.
In further detail, Wolford recorded positive performances in the USA, the UK and Asia, all areas where double-digit growth was reported.
Results were in the black in Europe too, despite the negative economic situation. Revenue grew in Belgium, the Netherlands, France and the southern European markets. By contrast, in Germany and Austria, two countries which were significantly affected by the long warm spell, the brand recorded a slight decrease in revenue.
The trend for Wolford is therefore quite positive, considering that the company traditionally produces weaker results in the first half of the year, for seasonal reasons.
Bolstered by its strategic realignment, established for several months now, Wolford confirmed its initial target for the 2015-2016 fiscal year: to record an increase in revenue and especially to return to a positive EBIT.
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