DGAP-Adhoc

Wolford AG: Publication of preliminary results for the 2012/13 fiscal year

Wolford AG / Key word(s): Profit Warning

14.06.2013 08:00

Dissemination of an Ad hoc announcement, transmitted by DGAP - a company of
EQS Group AG.
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

Publication of preliminary results for the 2012/13 fiscal year

- Revenues increase by 1.6% or EUR 2.4 million to EUR 156.5 million

- EBITDA down 48% to EUR 7.9 million, EBIT slightly negative at EUR -0.9
million

- Positive free cash flow of EUR 0.5 million (previous year: EUR 0.4
million)

Vienna/Bregenz, June 14, 2013. Today Wolford AG announces its preliminary
results for the 2012/13 fiscal year (May 1, 2012 - April 30, 2013), which
came in below expectations. The company generated total revenues of EUR
156.5 million, a rise of 1.6% or EUR 2.4 million, but incurred a decline in
EBITDA of 48% to EUR 7.9 million (previous year: EUR 15.2 million), and a
slightly negative EBIT of EUR -0.9 million (previous year: EUR 6.9
million). Due to the earnings situation, the Management Board will propose
to the Annual General Meeting to suspend the dividend payment for the
2012/13 fiscal year and to focus the financial resources on profitable
growth.

Against the backdrop of a difficult economic environment, Wolford succeeded
in raising revenues in its own retail business by 6%. However, this growth
was substantially reduced by the 5% decrease in the wholesale segment. The
weak economic situation, especially in Southern Europe, negatively impacted
sales in the core market of Europe (accounting for about 76% of Group
revenues). In addition, the unusually long and tough winter in 2013
perceptibly reduced customer demand in the entire industry. Accordingly,
Wolford was not able to generate the level of revenue growth required in
order to compensate for the future-oriented expansion of its international
distribution network.

Moreover, start-up costs in preparing for the company's market entry in
Greater China, higher rental costs for its own retail stores, increased
advertising expenditures designed to strengthen the brand as well as
write-downs on inventories and consulting expenses focusing on the
reorientation of the wholesale business and for last year's tax audit all
burdened earnings. In addition, the Management Board decided to shut down
loss-making stores in Europe and the USA and external warehouses, and to
destroy old merchandise. This all led to non-recurring expenses of
approximately EUR 1.5 million.

However, the consistant optimization of working capital enabled Wolford to
generate a positive cash flow from operating activities of EUR 6.3 million
(previous year: EUR 7.3 million) and a positive free cash flow of EUR 0.5
million (previous year: EUR 0.4 million). Thus Wolford boasts an ongoing
solid financing structure and balance sheet as a means of continuing its
growth strategy. On this basis the Management Board is striving to return
to positive operating results in the current fiscal year.

The final results for 2012/13 will be announced at the annual results press
conference scheduled to take place in Vienna on July 19, 2013.

Contact:
Holger Dahmen (Chief Executive Officer)
[phone]
Thomas Melzer (Chief Financial Officer)
[phone]

[e-mail]
www.wolford.com


---------------------------------------------------------------------------

Information and Explaination of the Issuer to this News:




14.06.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------------

Language: English
Company: Wolford AG
Wolfordstraße 1
6901 Bregenz
Austria
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.wolford.com
ISIN: AT0000834007
WKN: 83400
Indices: ATX
Listed: Freiverkehr in Berlin, München, Stuttgart; Frankfurt in Open
Market ; Wien (Amtlicher Handel / Official Market)

End of Announcement DGAP News-Service

---------------------------------------------------------------------------