- Prachi Singh |
The Tom Tailor Group grew in all segments in the first half of the year with sales increasing by 3.8 percent to 441.5 million euros (484.2 million dollars) and benefited in the second quarter from good dynamics across all segments. On the income side, the gross profit margin decreased slightly. Recurring EBITDA amounted to 26.3 million euros (28.8 million dollars) in the first half of the year compared to 30.5 million euros (33.4 million dollars).
“We are generally pleased with our performance in the first half of the year. The Tom Tailor Group achieved growth in the second quarter, and that applies to all segments,” said Dieter Holzer, CEO of Tom Tailor Holding, adding, “At the same time we remain fully focused on our targets for the full year and will continue striving to boost sales on a like-for-like basis and increase our earnings power.”
The company said that both umbrella brands contributed to the sales growth, while the German textile industry recorded a 2 percent decline in sales during the first half of the year. Bonita increased sales by 3.4 percent to 159 million euros (174.4 million dollars). It thus accounted for a 36 percent share of group sales in the first half with a gain of 4.5 percent on a like-for-like basis. The number of Bonita stores increased by five to 1,018.
Tom Tailor brand achieved a 4.1 percent increase in retail sales in the second quarter. For the first half of the year, sales were up 1.9 percent to 126.1 million euros (138.3 million dollars). However, the like-for-like sales increase in the second quarter was not quite sufficient to offset the negative trend at the beginning of the year. Consequently, there was a slight 0.8 percent decrease in sales on a like-for-like basis during the reporting period. The number of Tom Tailor Retail stores increased by 23 to 405 since the end of 2014.
The strongest growth impetus over the first half of the year came from the Tom Tailor wholesale business, with a 5.9 percent increase in sales to 156.3 million euros (171.6 million dollars); driven by a strong second quarter with a sales increase of 8 percent. Since the start of the year, the segment has increased the number of shop-in-shops by 76 to 2,762 and the number of franchise stores by three to 209. For the second half of 2015, however, the company expects slower growth in this segment.
Gross profit for the group increased by 3.2 million euros (3.5 million dollars) to 252.5 million euros (277 million dollars). As compared to the strong figure of the previous year, the gross profit margin declined 1.4 percentage points to 57.2 percent reflecting lower gross profit margin for Bonita. However, Bonita's gross profit margin remained at a high level at 66.3 percent.
For the second half of the year, the Group expects stable consumer demand in its core markets. Taking into account the traditionally stronger performance in the second half of the year as well as a large-scale television campaign for the Bonita brand, the management board has reaffirmed the forecast for the fiscal year 2015. The Group is committed to the goal of moderate, single-digit growth in Group sales in 2015 and a recurring EBITDA margin at the previous year's level.