EANS-News

Wolford Aktiengesellschaft / Wolford Centralizes European Marketing and Sales and Strengthens its Headquarters in Bregenz

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Strategic management decisions/Company Information

Bregenz, May 24, 2016. Wolford is centralizing its sales and
marketing organization. There will be one central sales and marketing
platform for the Europe, Middle East and Africa (EMEA) Region located
at corporate headquarters in Bregenz instead of nine sales
organizations throughout Europe. The company is also focusing on the
platform strategy in America and Asia through its business hubs in
New York and Hong Kong.

The headquarters in Bregenz is being strengthened by this
reorganization. A central sales and marketing organization for the
EMEA region is being set up to provide comprehensive online and
offline support for the activities of all company sales channels.
Furthermore marketing at headquarters is being expanded. It
encompasses trade marketing, visual merchandizing, marketing
communications and art direction, and is responsible for the entire
organization. Wolford will create about 20 new jobs in Bregenz in the
current 2016/17 financial year within the context of implementing
these measures.

The relocation of sewing operations to the Wolford site in Slovenia
as initiated in 2014 and the related concentration of textile
production in Bregenz will finally be concluded in the current
financial year. Local administrative structures are also being
streamlined as a consequence of the further optimization of
production and logistics processes and the consistent review of all
support functions.

Clear focus on the end customer

"The far-reaching reorganization of marketing and sales is the
logical result of the resolute orientation of the entire company to
retail requirements and thus to the end customer, regardless through
which sales channel they are reached", states Ashish Sensarma, CEO of
Wolford since the beginning of 2015. These measures go hand in hand
with the systematic optimization of the online and offline sales
experience, including implementation of a new shop concept and the
redesigning of the window concept as of September 2016 as well as a
new appearance for the 16 global online boutiques. At the same time,
the profitability of Wolford's own retail operations is being
continually increased. Retail Stores with expiring lease agreements
are subject to a fundamental review and may be discontinued where
appropriate. Significantly lower discounts on Wolford products will
be granted as a means of further increasing their profit
contributions.

"Wolford's gross margin is comparable to other global luxury brands",
emphasizes Axel Dreher, COO/CFO of Wolford. "However, structural
measures are also necessary in order to sustainably strengthen
profitability and resolutely orient the company to market
requirements. We are now specifically focusing on doing this."

As part of its strategic objectives, Wolford AG has set a goal of
gradually increasing its EBIT margin to 10 percent in order to match
the performance of other luxury brands. Corresponding measures
already partly initiated in 2014 to increase revenue and reduce costs
were intensified and expanded in the past financial year.

Further inquiry note:
Wolford AG
Maresa Hoffmann
Referentin Investor Relations & Corporate Communications
Tel.: [phone]
[e-mail] | company.wolford.com

end of announcement euro adhoc
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company: Wolford Aktiengesellschaft
Wolfordstrasse 1
A-6900 Bregenz
phone: [phone]
FAX: [phone]
mail: [e-mail]
WWW: company.wolford.com
sector: Textiles & Clothing
ISIN: AT0000834007
indexes: ATX Prime, ATX Global Players
stockmarkets: free trade: Frankfurt, regulated dealing: Wien, ADR: New York
language: English