EQS-News: Wolford AG / Key word(s): Annual Results
Wolford AG: Wolford AG presents detailed figures for the fiscal year 2021

17.06.2022 / 14:30
The issuer is solely responsible for the content of this announcement.

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Bregenz, June 17, 2022:

• Revenues € 108,945 million
• EBITDA € 8,535
• EBITDA margin 7.8%
• EBIT € -5,263
• EBIT margin -4.8%
• Earnings after taxes € -12,332

Wolford delivered a resilient and encouraging performance with a
significant turnaround in EBITDA, and demonstrated a clear path to
sustainable growth despite the challenging market conditions in 2021. The
company delivered positive sales growth across all channels and
geographies, as a result of its global expansion and enhanced brand
strategies. Substantial revenue growth in both the US and China partially
offset the impact of lockdowns in Europe. Athleisure lines and capsule
collections with internationally acclaimed designers have also proven to
be a new, high-growth avenue for the brand.  The business will continue to
innovate to capture the significant market opportunities which exist.

Best EBITDA in 10 years, double-digit growth in turnover and earnings

With sales of € 108.9 million for the reporting period January to December
2021, Wolford AG beat the previous year (January to December 2020) by
approximately € 13.2 million (approx. 14%). EBITDA (operating result
before depreciation and amortization and other financial expenses) turned
significantly positive from € -8.0 million to € +8.5 million, which is the
best EBITDA result in 10 years (adjusted for real estate sales).

Wolford has continued to make encouraging progress with its measures to
improve the top and bottom lines as part of its ongoing restructuring
program, despite the absence of applied Covid-19 state aid payout ("fixed
cost subsidy" and "loss compensation") in the past financial year.

Sales growth across all channels and geographies: online, US and China
businesses grow double-digit, new brand architecture drives growth

Against a groupwide increase in revenue of 14%, the China and US
businesses were the main geographical growth drivers with 79% and 38%
growth respectively. In the company’s well-established EMEA markets, the
company also grew by 7% notwithstanding weakened consumer sentiment at the
beginning of the year and in the fourth quarter due to lockdowns in
Europe. With a 21% year-on-year growth in retail sales, the company has
also successfully put its retail business back on a sustainable growth
path. Revenue from wholesale and online channels grew by 3% and 27%
respectively.

The growth drivers from an assortment point of view were the collections
of the brand extension "The W" (modern, young and sporty) and "The W Lab"
(cooperation with external star designers), which grew 11-fold in the
legwear and ready-to-wear product groups. This once again confirmed the
adopted strategy of the brand architecture.

The first international collaboration of 2021, Amina Muaddi x Wolford,
exceeded expectations across all sales channels. The success of this
capsule collection within the wholesale network - supported by special
pop-up stores in exclusive shopping malls - made it possible to increase
business overall and open more doors to premium designer stores worldwide.
With the help of digital marketing measures developed in-house, together
with Amina Muaddi, Wolford is now successfully addressing an additional e
significantly younger and fashion-conscious target group.

With the aim of growing the business in certain key markets, Wolford has
also started to develop collaborations with regionally relevant fashion
design talents and brands. These include the lingerie capsule collection
with Neiwai, a Shanghai-based brand known for its simple and sustainable
cuts.

Outlook: Further increase in profitability, growth course targets over €
200 million turnover, further digitalization of the business model

With the significantly improved 2021 results and a clear future growth
strategy in place, Wolford is back on track to sustainable growth after
ten years, and is now better placed than ever to occupy its position as
the world's leading supplier of women's skinwear in the upper premium
segment. The company aims to achieve global sales of over € 200 million in
the next three to five years.

Wolford has launched a transformation agenda for the next three years
which includes important growth initiatives as well as the further
restructuring and increased digitalization of the business model.

In terms of brand and product strategy, Wolford continues to focus on the
strategy of brand expansion. For example, the latest label "The W"
achieved 14% of trend sales in 2021. Wolford also expanded its successful
cooperations under "The W Lab": Alberta Ferretti and GCDS marked the
launch of numerous international campaigns and a total of four
collaborations with outstanding international designers in the first
semester of this year. Geographically, the company continues to invest in
the core markets of the USA, Germany, Austria and Switzerland, as well as
China.

In the current financial year alone, Wolford plans to open 15 new
boutiques and invest across all distribution channels - retail, wholesale
and online - including a new shop concept, "The Green Experience", which
underlines Wolford's strength and commitment to sustainability.  

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17.06.2022 This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: Wolford AG
Wolfordstrasse 1
6900 Bregenz
Austria
Phone: +43/5574/6900
E-mail: investor@wolford.com
Internet: www.wolford.com
ISIN: AT0000834007
WKN: 83400
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt
(Basic Board), Munich, Stuttgart; Vienna Stock Exchange
(Official Market)
EQS News ID: 1378401

 
End of News EQS News Service

1378401  17.06.2022