DGAP-News

Adler Modemärkte AG: ADLER Bucks Industry Trend, Continues Profitable Growth

DGAP-News: Adler Modemärkte AG / Key word(s): Final Results
Adler Modemärkte AG: ADLER Bucks Industry Trend, Continues Profitable
Growth

19.03.2015 / 07:28

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

Press Release from Adler Modemärkte AG

2014 Annual Result - Solid Basis for Further Expansion

ADLER Bucks Industry Trend, Continues Profitable Growth

Proposed Dividend of EUR0.50

Haibach (near Aschaffenburg), 19 March 2014. Adler Modemärkte AG - one of
Germany's largest textile retailers - can look back on a successful
financial year 2014. ADLER once again bucked the negative industry trend
and expanded its position, while also increasing revenue by 1.3% from
EUR528.6 million to EUR535.3 million. In the previous year, revenue was
lifted by EUR3.8 million due to a non-recurring effect resulting from the
improvement in the recognition of obligations arising in connection with
the customer loyalty card. Adjusted for this effect, revenue growth was
2.0%. In order to further strengthen its earnings, ADLER closed four
unprofitable stores in 2014. A further store was closed after an extension
of the lease could not be agreed with the owner of the store property. Four
new stores were opened during the same period. In a like-for-like
comparison - i.e., a comparison of sales on existing floor space - the
revenue growth rate even amounted to 3.0%, whereas bricks-and-mortar
retailers in Germany recorded an average decline in revenue of 3.0%.

"In 2014, ADLER once again demonstrated that our strategy of focusing on
the group of customers aged 45 and up works, even in a difficult market
environment in the textile retail industry. We have laid an extremely solid
foundation to continue our expansion. Our new modern image and a product
range tailored to our customers were the key drivers behind this success.
Our task now is to build on that success. Going forward, we will continue
to raise the level of profitability and customer service through new stores
and our online sales channel. Following our recent acquisitions of Kressner
and hefa, we believe that we are well on our way to achieving this", said
ADLER's CEO Lothar Schäfer, commenting on the results of the financial
year.

High gross profit margin; EBITDA again tops EUR40 million

Thanks to this positive development, ADLER again succeeded in maintaining
an extremely high gross profit margin in 2014. After jumping from 10% to a