- Prachi Singh |
Tom Tailor Group achieved a profitable growth course in the fiscal year 2014 with sales increasing to 932.1 million euros (1,064.3 million dollars) and thus came in at the upper end of the target range of 925 million euros (1,056.2 million dollars) to 935 million euros (1,067.6 million dollars) representing a 9.1 percent increase. Recurring EBITDA increased by 13 percent over the previous year primarily attributable to the sales growth at the Tom Tailor brand and the improved profitability of Bonita.
An increase in the gross profit margin by 2.1 percentage points to 57.1 percent also had a positive impact. For the Group as a whole, the recurring EBITDA margin rose to 9.4 percent and thus came in close to the middle of the target range of 9.2 percent to 9.7 percent. The reported EBITDA increased as compared to the previous year by 31.4 percent, with an EBITDA margin increase up to 9 percent.
“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.
The wholesale segment continued driving forward its expansion particularly dynamic in the year under review and boosted sales by 9.7 percent. The recurring EBITDA in this segment rose by 20.1 percent. 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 percent.
In 2014, the 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 percent, with a slight decline in gross profit margin to 58.9 percent owing to increased promotional activities. The recurring EBITDA, at 25.3 million euros (28.8 million dollars), remained at the previous year's level.
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 by 7.4 percent, but profitability increased, as indicated by a 19.6 percent increase in recurring EBITDA. 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 percent.
The complete and audited earnings results for the fiscal year 2014, including the forecast for the current fiscal year, will be presented by the company on March 18, 2015.