DGAP-News

Adler Modemärkte AG: Positive turnaround in May and June - revenue and earnings stabilised in Q2

DGAP-News: Adler Modemärkte AG / Key word(s): Half Year Results/Forecast
Adler Modemärkte AG: Positive turnaround in May and June - revenue and
earnings stabilised in Q2

04.08.2016 / 07:30
The issuer is solely responsible for the content of this announcement.

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Forecast for full-year 2016 adjusted

Haibach bei Aschaffenburg, 4 August 2016: Against the backdrop of the
negative industry trend, Adler Modemärkte AG recorded a drop in revenue in
the first six months of 2016.
Initially, ADLER performed weaker than the overall market but a positive
turnaround became apparent in May and June.
In sum, the revenue of Adler Modemärkte AG was EUR 257.1 million in the
six-month period, dropping by 4.2% compared to EUR 268.4 million for the
first half of 2015. On a like-for-like basis, the decline was also 4.2%
The first half of the year is typically the weaker of the two for ADLER, in
particular due to the clearance of winter merchandise. In the reporting
period, poor weather conditions also had an adverse effect on revenue,
hitting demand for the spring- and summer ranges.
ADLER implemented various measures to react to the weak growth in the
beginning of financial year 2016; these have already resulted in the first
cost savings in 2016.

Gross profit margin slightly down
The ADLER Group's cost of materials decreased by 2.7% from EUR 125.3
million to EUR 121.9 million due to the decline in revenue. Gross profit
declined from EUR 143.1 million to EUR135.2 million. The gross profit on
goods sold fell from 53.3% to 52.6%.

EBITDA declined to EUR 0.7 million from EUR 4.5 million in the first half
of 2015. Earnings before interest and taxes (EBIT) fell to EUR -7.5 million
from EUR -3.4 million in the first half of 2015.
Earnings before taxes (EBT) fell from EUR -5.8 million to EUR -10.0 million
in the first six months of 2016. ADLER reported a consolidated net loss of
EUR 8.0 million as at 30 June 2016 (H1 2015: consolidated net loss of EUR
5.3 million).
Adjusted earnings per share amounted to EUR -0.43. Earnings per share
totalled EUR -0.28 in the comparable period.

Cash and cash equivalents declined from EUR 52.1 million as at 31 December
2015 to EUR 28.9 million as at balance sheet day. This was due to seasonal
factors attributable to payment of the dividend, as well as the lower level
of revenue and the corresponding increase in the consolidated net loss for
the period.

Sales growth in May and June
ADLER recorded a slight revenue decrease of just 1.0% to EUR 151.8 million