DGAP-News

TOM TAILOR Holding AG: TOM TAILOR GROUP returns to profitability in 2014 with recurring net income of EUR 21.1 million - Seite 2

7.1%).

"The performance of the TOM TAILOR GROUP in the year under review was
generally satisfactory against the backdrop of the overall difficult market
development, and represented a further step in the direction of earnings
improvement. We will continue to pursue this course with the clear
objective of strengthening our competitiveness and further enhancing our
profitability," commented Dieter Holzer, Chief Executive Officer of TOM
TAILOR Holding AG.


TOM TAILOR brand stands its ground in tough market environment

The TOM TAILOR wholesale segment continued driving forward its expansion
particularly dynamic in the year under review and boosted sales by 9.7% to
EUR 331.7 million (previous year: EUR 302.4 million). The recurring EBITDA
in this segment rose by 20.1% to EUR 36.4 million (previous year: EUR 30.3
million). The main drivers behind this increase, in addition to the growth
in sales, were the further optimisation of procurement and the rise in the
gross profit margin to 44.7% (previous year: 43.5%).

In 2014, the TOM TAILOR retail segment posted a solid performance in a
difficult market environment, especially in the second half of the year.
Sales in the retail segment were up by 8.4% to EUR 275.5 million (previous
year: EUR 254.1 million). The slight decline in gross profit margin to
58.9% (previous year: 59.7%) reflects the increased promotional activities.
The recurring EBITDA, at EUR 25.3 million, remained at the previous year's
level (previous year: EUR 25.5 million).


Focus on sales quality at BONITA

For the BONITA brand, the product design was improved and the quality of
sales and profitability enhanced through an intentional reduction in
special sales promotions. Compared with the previous year, which was
heavily influenced by promotional activities, sales decreased as expected
by 7.4% to EUR 324.9 million (previous year: EUR 350.7 million). At the
same time, BONITA significantly increased its profitability, as indicated
by a 19.6% increase in recurring EBITDA to EUR 25.6 million (previous year:
EUR 21.4 million). Major factors behind the increase in profitability
included, in particular, the positive trend in the gross profit margin,
which increased by 6.6 percentage points in the year under review to 68.1%
(previous year: 61.5%).


Positive net income and strong free cash flow

For the first time since the acquisition of BONITA in 2012, the TOM TAILOR