- Prachi Singh |
Wolford AG has said that its first quarter revenues, adjusted for currency items, grew by 4.9 percent to 29.09 million euros (35.12 million dollars). The company added that consistent with this growth, operating earnings also improved on the weak previous year's quarter to -7.22 million euros (-8.72 million dollars) against -8.08 million euros (-9.75 million dollars). Including taxes calculated in line with IAS 34, earnings after tax were -6.91 million euros (-8.34 million dollars) against -8.03 million euros (-9.69 million dollars) last year.
The company said that the proprietary retail business and the wholesale business both posted year-on- year revenue growth in the first three months, with retail revenues rising by 6 percent and wholesale revenues by 2.2 percent. The proprietary online business reported a revenue growth of 27.9 percent driven by improved product availability and successful marketing campaigns.
Wolford reports revenue growth in core markets
The US, Wolford's largest market in terms of revenues, posted a double-digit revenue growth driven above all by the proprietary online business. Spain, the Netherlands, and East European markets also reported double-digit growth rates. Wolford generated single-digit growth in Italy, Scandinavia, Asia, Austria, Germany, and Switzerland.
The company added, due not least to the impact of Brexit, the depreciation in the British pound, and the closure of three locations, Wolford reported a double- digit reduction in revenues in the UK, a factor which had a moderate impact on earnings. Wolford also reported a single-digit fall in revenues in France and Belgium.
For the current financial year, the Wolford management expects slight year-on-year revenue growth and further negative earnings. Wolford added that implementation of the restructuring measures aimed at improving earnings is governed by a two-year schedule and the relevant measures will only take full effect from the 2018/19 financial year. The company expects to generate positive operating earnings once again from then onwards.