GERMANY: Sales and margin growth narrow Tom Tailor Q1 loss
- Q1 loss of EUR6.7m versus EUR8.6m
- Group sales up 6% to EUR208.7m
- Gross margin improves 320 basis points
German fashion business Tom Tailor has seen its first-quarter loss narrow on the back of sales and margin growth.
The group's net loss came to EUR6.7m (US$9.3m) for the first three months of the current fiscal year, compared to EUR8.6m in the same period of the prior year.
Group sales were up 6% to EUR208.7m from EUR196.8m last year. The Tom Tailor brand saw retail and wholesale sales increase 22.3% and 7.6 respectively.
Bonita posted a 6.3% decline as the company reduced its promotions with a long-term view to strengthen both sales quality and profitability.
Gross margin improved 320 basis points to 56.9%. The company said this was thanks to the improvement in Bonita's gross margin, larger retail share, and an increase in efficiency in its sourcing organisation in Asia.
"We got off to a good start in 2014," said CEO Dieter Holzer. He added that its namesake brand continued on its positive course in sales without interruption and outperformed the market.
"Bonita's development has confirmed our strategy of working to boost long-term profitability by concentrating on qualitative sales. We will continue resolutely on this path in the coming quarters and we are confident to develop Bonita within the next 12-24 months to a market performer."
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