Tom Tailor H1 sales up 2.2 percent

The Tom Tailor Group achieved a slight rise in sales in the second quarter of the fiscal year 2016. In the first half, sales increased 2.2 percent to 451.3 million euros (503.9 million dollars). The company said that the growth was driven by the Tom Tailor brand, which posted gains in both the retail and wholesale segments. Through the end of the reporting period, EBITDA amounted to 23.5 million euros (26.2 million dollars) against 26.3 million euros (29.3 million dollars).

"In the second quarter we continued to pursue the implementation of our efficiency program and the verticalization of our business. The structural transformation continues and requires us to streamline our business processes, interlink our stationary retail and e-commerce business and provide our customers with the best possible service. We will continue to focus on our initiatives in the second half of the year so as to increase our competitiveness and significantly drive our profitability," said Dieter Holzer, the CEO of Tom Tailor Holding.

Major developments during the first half

The company partnered with online retailer Zalando and launched the Tom Tailor brand shop on its platform. In addition, the company rolled out the Click & Collect service in Germany.

Tom Tailor Retail posted a 10 percent increase in sales in the second quarter to 74 million euros (82.6 million dollars). First-half sales rose by 9.3 percent to 137.8 million euros (153.8 million dollars) in the retail business, mainly as a result of the expansion of sales space. Since the end of 2015, the number of stores has increased by eight to 468. On a like-for-like basis, sales in the first half of the year were 1.8 percent lower.

Tom Tailor Wholesale, with a 1.4 percent increase in sales in the second quarter to 72.8 million euros (81.2 million dollars), did not match the pace set in the first quarter. The wholesale segment increased its sales in the first half by 2.4 percent to 160.1 million euros (178.7 million dollars). Since the end of 2015, the number of shop-in-shop spaces has increased by 189 to 3,145, while the number of franchise stores rose by three to 206.

After the difficult start to the year, the Bonita brand sales were slightly down by 1.2 percent year-on-year to 85.6 million euros (95.5 million dollars). In the first half of the year, Group sales decreased by 3.5 percent to 153.4 million euros (171.3 million dollars). On a like-for-like basis, sales declined by 3.4 percent. In the review of the store network, the Group has decreased the number of Bonita stores since the end of 2015 by 15 to 1,011.

Expects moderate increase in full-year sales

For the full year, the Tom Tailor Group anticipates a moderate year-on-year sales increase in the low single digits. The company expects the CORE and POLE Position programs to begin impacting earnings for the first time as of the end of the current fiscal year. Consequently, the Management Board expects recurring EBITDA for 2016 to match the previous year's level.

Picture:Tom Tailor