DGAP-News

TOM TAILOR GROUP separates from its troubled past and lays foundation for the future - Seite 2

"We are gradually shedding ourselves of the troubled past. This was associated with financial cuts in 2016, but we have already emerged out of the trough. The first positive impacts have already become tangible in the fourth quarter. This is evidenced by the slight improvement of the gross profit margin at TOM TAILOR and BONITA, and the adjusted cost structure," explained Dr Heiko Schäfer, interim CEO and COO of TOM TAILOR Holding AG. "During the current fiscal year 2017, we will complete the remaining clean-up work and look with confidence to the future. Ultimately, we have excellent employees, long-time customer relationships and attractive brands."

The umbrella brand TOM TAILOR achieved growth of 5.6 percent to EUR 665.6 million (previous year: EUR 630.0 million) with sales through its own stores and wholesale partners. The umbrella brand BONITA contributed EUR 303.0 million to Group sales after EUR 325.8 million in the previous year. Here it became evident that the new collection style has generated a good level of acceptance. This is already reflected in an increased gross profit margin of more than 70 percent in the fourth quarter.

Net debt and inventories significantly reduced

Since June 2016, the TOM TAILOR GROUP has succeeded in significantly reducing its level of net debt by EUR 44.3 million to EUR 194.7 million. The successful capital increase carried out in December 2016 generated proceeds of EUR 12.5 million and enabled the company to pay off a part of its maturing promissory note loans.

The company also selectively withdrew old stocks with no impact on income, and thereby reduced its inventories by EUR 44.3 million to EUR 159.1 million compared with 30 June 2016. This substantially improved working capital.

The balance sheet was reduced from EUR 781.5 million (status: 30 June 2016) to EUR 695.7 million.

"Over the past few months, we have been driving our RESET program with great intensity and have now achieved the first tangible successes. This program has yielded a number of positive benefits including an improvement of the working capital, and we are getting closer to our overarching goal of getting the company out of debt," summarized Thomas Dressendörfer, CFO of TOM TAILOR Holding. "In 2017, we will complete the program and stabilize our core business. We will then devote our attention to developing strategic, profitable, growth opportunities."