EANS-News

Wolford AG: Detailed Figures announced for the First Half-Year 2018/19

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Quarterly Report

Bregenz -

* Slightly improved operating earnings despite revenue decline
* Positive second-quarter EBIT
* Successful brand relaunch
* Outlook confirmed


Bregenz, December 14, 2018: Wolford AG, which is listed on the Vienna Stock
Exchange, generated revenue of EUR 62.37 million in the first half of the
current financial year, comprising a decline of 11% compared to EUR 70.15
million in the previous year. The decrease in revenue equaled 10% during the
first six months when adjusted for changes in currency exchange rates
(especially the decrease in value of the Swiss franc and the US dollar). Within
the context of systematically reducing ongoing costs, Wolford managed to
slightly improve operating earnings (EBIT) in spite of the revenue decline and
higher marketing costs. EBIT in the first half of the current 2018/19 financial
year amounted to EUR -5.92 million, compared to EUR -6.18 million in the prior-
year period. Wolford generated a positive second-quarter EBIT of about EUR 1
million. However, as the consequence of a tax payment, earnings after tax
deteriorated to EUR -7.33 million, down from EUR -6.62 million in the first six
months of 2017/18. The revenue decline in the first half-year affected the
company's own retail (-9.3%) and wholesale (-10.3%) business, whereas the online
segment reported a 14% rise in revenue. Wolford's second-quarter business
operations were also negatively impacted by weak customer frequency related to
the long-lasting summerlike temperatures and the late start of the autumn
season. The entire European fashion market was affected by this development.
Revenue of German fashion retailers fell by 13% in September alone.

Declining fixed costs and higher equity Ratio

Wolford succeeded in slightly improving operating earnings in spite of the
revenue decrease and higher marketing expenses. The restructuring program, above
all the systematic reduction of excess capacities and the streamlining of
corporate processes, showed a sustainably positive effect. Personnel expenses
fell substantially by EUR 3.31 million year-on-year to EUR 31.16 million.
Moreover, other operating expenses were down by EUR 2.16 million to EUR 24.45
million.

The equity ratio improved substantially to 39% compared to 29% in the previous
year as a result of the successfully concluded capital increase in July 2018.