DGAP-News

Adler Modemärkte AG: Positive turnaround in May and June - revenue and earnings stabilised in Q2 - Seite 2

in the second quarter of 2016 (Q2 2015: EUR 153.3 million) with a positive
turnaround becoming apparent in May and June. In these two months, ADLER
managed to grow by 0.2% and 4.3% respectively, whereas the German textile
industry recorded a drop of 1% and 2%.
Like-for-like revenue was down 1.7% on the figure for the second quarter of
2015.

"After two challenging quarters, we are optimistic that the development has
bottomed out", says Lothar Schäfer, CEO of Adler Modemärkte AG. "We have
taken different measures to enhance profitability by utilizing saving and
optimization potentials. This has already generated some initial positive
effects which will continue to grow significantly, particularly as the year
draws to a close. Above all, they will lay the foundation for substantial
improvements for the 2017 financial year."

Optimisation of store network continued
ADLER opened a store in Chur in March 2016, its second in Switzerland. A
new store was opened in Neumarkt in der Oberpfalz in April, followed by
another in Hard near Bregenz, Austria, in June. No stores were closed in
the reporting period. The stores in Georgsmarienhütte, Weiden and Gotha
were extensively renovated under the programme to modernise older existing
ADLER stores.

Forecast adjusted, but new marketing campaign expected to have positive
effect on the operating performance
In light of the subdued development of the operating business in the first
half of the year and what continues to be a challenging market environment
for the German textile retail industry, ADLER is adjusting the forecast for
the current year, as given in the 2015 Annual Report. As consolidated
revenue in the second half of the year is anticipated to be at no more than
the prior-year level, consolidated revenue for full-year 2016 is not
expected to reach the previous year's figure of approximately EUR 566
million. The new marketing campaign beginning in September should have a
positive effect on the operating performance from the fourth quarter.
Developments in the first half of the year and the outlook for the full
year will correspondingly impact the development of earnings during the
year as a whole. Thus, the Company is forecasting that EBITDA will be
between EUR 27 million and EUR 30 million (prior-year: EUR 33.3
million). The forecast again calls for significantly higher after-tax
earnings.

Adler Modemärkte AG's full half-year report is now available for inspection
or download from the Company's homepage at
http://www.adlermode-unternehmen.com/en/investor-relations/reports-and-pub
lications/financial-reports/

ADLER Group's key performance indicators

(EUR million)     H1 2016   H1 2015   Change   Q2 2016   Q2 2015  Change