• Q1 loss widens to EUR6.9m from EUR6.7m
  • Group sales up 3.4% to EUR215.7m
  • Company confident for year ahead
Tom Tailor retail sales edged down 0.6% during the quarter

Tom Tailor retail sales edged down 0.6% during the quarter

German fashion business Tom Tailor said it got off to "a good start" to its fiscal year, despite reporting a wider year-on-year first-quarter loss.

The company's net loss amounted to EUR6.9m (US$7.8m) for the three months to the end of March, compared to a loss of EUR6.7m in the same period of the prior year.

Group sales increased 3.4% to EUR215.7m from EUR208.7m last year. Although its namesake brand saw retail sales edge down 0.6% to EUR58.9m, Tom Tailor wholesale sales increased 4.2% to EUR84.5m. The company said it expects improvements in this segment to slow down over the course of the year.

Bonita booked growth of 5.8% to EUR72.4m, driven by improved product and design quality, as well as shorter procurement times.

Gross margin, however, slipped to 55.3% from 56.9%.

"We're off to a good start in 2015 and have once again outperformed the market. For the first time, Bonita has substantially contributed to this development," said CEO Dieter Holzer. "The measures we have taken are now also becoming visible from the outside. In general we are therefore confident for our group's development in the course of 2015."

Tom Tailor said it will continue to expand its own retail areas, as well as push ahead with strategic and operational measures to optimise both brands across all sales channels.