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Ahlers second quarter revenues grow 4 percent

Sales revenues at Ahlers for the second quarter rose 4 percent to 54.2 million euros (62 million dollars), which the company attributed to accelerated growth in core business and catch-up on postponed deliveries. The company said, just like the first quarter, the second quarter of 2016/17 also saw sales revenues of Baldessarini, Pierre Cardin and Pioneer grow against the negative market trend.

Commenting on the trading, Dr. Stella A. Ahlers, CEO of Ahlers AG, said in a media release: "Our existing brands are well positioned, so we were once more able to gain additional market shares.”

Second quarter financial review

Ahlers’ existing brands grew by 4.4 million euros (5 million dollars) or 8.9 percent. On the one hand, the first quarter’s postponed deliveries of 2.9 million euros (3.3 million dollars) were caught up on as expected; on the other hand, the company said, accelerated revenue growth of 3 percent at 1.5 million euros (1.7 million dollars) mainly by Pierre Cardin and Pioneer Authentic Jeans contributed to this trend.

Adjusted for the discontinued business activities, Ahlers Group revenues increased by 2.5 million euros (2.8 million dollars) or 2.2 percent from 114.5 million euros (131 million dollars) to 117 million euros (134 million dollars) in the first six months of 2016/17. The company said, discontinuation of Gin Tonic and of the business with the last remaining large private label customer led to a shortfall in revenues of 3.5 million euros (4 million dollars) and the growth achieved by the continued brands did not entirely offset this reduction, which means that Group revenues in the first six months of the current fiscal year declined by 0.8 percent to 117.3 million euros (134 million dollars).

In Germany, Ahlers’ continued operations recorded a 2.6 percent increase in sales revenues, while the company said, fashion market as a whole contracted by 3.3 percent. Sales revenues in Eastern Europe also showed a positive trend and rose by 2.7 percent, supported by growth in Russia, Ukraine, the Baltic states and Poland. Sales revenues of the company’s own retail stores increased by 1.2 percent in the first six months of 2016/17 but in like-for-like terms, revenues were down by 0.6 percent on the same period of the previous year. Ecommerce revenues rose by 5.1 percent in the first six months of the current fiscal year.

Due to the discontinuation of low-margin activities as well as reduced write-downs and discounts, the gross profit margin climbed 0.6 percentage points from 48.9 percent to 49.5 percent. This, the company said, more than offset the revenue effect, and gross profit increased by 0.2 million euros (2.2 million dollars) to 58 million euros (66 million dollars). Lower special expenses and a normalised tax ratio led to a consolidated net income increased by 12.5 percent to 0.9 million euros (0.10 million dollars).

Ahlers board expects revenues to further grow in H2

The management board expects revenues of its continued activities to grow also in the second half of 2017. “Especially the Baldessarini, Pierre Cardin and Pioneer Authentic Jeans brands are likely to grow at a similar pace as in the first six months of the year. Together with declined revenues of the discontinued activities total revenues should thus be stable in the fiscal year 2016/17,” added Ahlers.

The board has also confirmed the earnings forecast for fiscal 2016/17, which was published at the beginning of the year. Consolidated net income for the year is expected to increase by a low double-digit percentage on the previous year’s 2.5 million euros (2.8 million dollars).

Picture:Baldessarini website