Tom Tailor focuses on profit drive after FY slump
Tom Tailor will focus on implementing steps to improve its profitability
German fashion house Tom Tailor Group has said it will ramp up key steps in its 'Core' efficiency drive in a bid to improve its profitability after seeing its full-year profit plummet almost 100%.
Announcing preliminary full-year figures, the company said net income amounted to EUR100,000 (US$109,974) for fiscal 2015, compared to EUR10.8m in the same period of a year before.
Sales increased 2.5% to EUR955.9m from EUR932.1m last year. Tom Tailor retail sales grew 4.9% to EUR289.1m, with like-for-like sales down 0.3%. Bonita sales climbed 0.3% to EUR325.8m, and like-for-like sales rose 1.7%. Tom Tailor wholesale sales increased 2.8% to EUR341m.
However, the company said the result was negatively impacted by delivery problems of the autumn and winter collections during the launch of the new logistics centre, and expenses linked to its accelerated retail expansion.
"The textile industry is undergoing a rapid change, driven by digitalisation and customers' changing shopping habits," said CEO Dieter Holzer.
Tom Tailor initiated two programmes in 2015 to improve flexibility, speed up processes and reduce costs. This included putting a new organisational structure in place and accelerating the verticalisation of the business. The group also launched a cost reduction and efficiency initiative in November last year, designed to further strengthen long-term profitability.
Holzer added: "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."
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