Wolford earnings rise in first nine months of financial year
Luxury hosiery brand Wolford generated positive net earnings of Â€4.5 million in the first nine months of the 2014/15 financial year.
Revenues declined by 1.9% to €121.1 million, but EBIT rose by nearly €5 million from €2.2 million to €7.1 million. EBIT adjusted for non-recurring income and expenses improved from €2.8 million to €4.1 million.
The decline in revenues during the nine month period was due to the previous closure of unprofitable points of sale and difficult market conditions during the second quarter. The online business grew its sales by 17%.
A relatively slow second quarter and weak November were followed by improved sales during the key Christmas trading period. Revenues rose by 4% year-on-year in December and by 2% in January. Third quarter EBIT was €3.9 million compared to €4.5 million in the previous year due to higher rental and marketing expenses.
Looking at Wolford’s regions, declines were recorded in Wolford’s key markets of Germany, Austria and France. Business in Wolford’s largest market, the US, declined by 2% during the first nine months but has now stabilized. Revenue in Italy, Spain and the UK rose by 10%, 10% and 4% respectively. In Central and Eastern Europe, the Ukraine crisis led to a 21% drop in revenues. Meanwhile, revenues in Wolford’s Asian market rose by 13%.
As well as closing unprofitable outlets, Wolford opened in in new locations such as Barcelona, Florence and Frankfurt in the period. Wolford also launched a new flagship store on Munich‘s Weinstrasse at the beginning of March.
In January, Wolford appointed Ashish Sensarma as its new chief executive with responsibility for marketing and sales.
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