Tom Tailor FY15 net sales improve 2.5 percent

Tom Tailor Group has said that according to preliminary figures, increased its net sales by 2.5 percent in the year under review to 955.9 million euros (1,055 million dollars) against 932.1 million euros (1,028.7 million dollars) in the previous year. The company said results exceeded the concretized net sales forecast of 945-955 million euros (1,042-1,053 million dollars) released in September 2015.

"The textile industry is undergoing a rapid change, driven by digitalization and customers changing shopping habits. We initiated two programs in 2015 to improve our flexibility, speed up our processes and reduce costs," said Dieter Holzer, CEO of Tom Tailor Holding, adding, “During the current fiscal year, we will focus on the implementation of the relevant steps in order to improve our profitability and in order to face up to vertical competition."

Net sales up across segments

The result, the company said was negatively impacted by interim delivery problems of the autumn and winter collections during the launch of the new logistics center and expenses of the accelerated retail expansion. Recurring EBITDA for the fiscal year amounted to 76.3 million euros (84.1 million dollars) compared to 87.2 million euros (96.2 million dollars) and were at the lower end of the concretized target corridor of 75-80 million euros (82.7 to 88.2 million dollars).

The company managed to increase its net sales in all segments. Net sales of the Tom Tailor umbrella brand went up by 3.8 percent and net sales of Tom Tailor Wholesale increased by 2.8 percent. The segment recorded a healthy trend in the first half of the year that slowed down in the third quarter due to shipping delays experienced as the new logistics center went on line. The fourth quarter saw a substantial 8.5 percent increase of net sales. Since the beginning of the year, the number of shop-in-shop spaces has increased by 270 to 2,956. The number of franchise shops decreased by three to 203.

Tom Tailor’s retail net sales increased by 4.9 percent and on a like-for-like basis, net sales were at the previous year’s level, showing a slight decrease of 0.3 percent. Compared to 2014, the number of Tom Tailor retail stores increased by 78 to 460.

Net sales of Bonita increased marginally and the segment now accounted for 34.1 percent of group net sales. On a like-for-like basis, Bonita achieved 1.7 percent growth in net sales for fiscal year 2015. The number of stores increased by 13 to 1,026.