GERMANY: Tom Tailor FY earnings up on Bonita buy
- FY EBITDA up 16.1% to EUR77.2m
- FY sales up 44.1% to EUR907.2m
- Bonita endured difficult end to year
German fashion business Tom Tailor confirmed a 16% increase in earnings for 2013 and outlined its intention to boost the fortunes of recent acquisition Bonita.
That buy boosted full-year revenues by some 44.1%, with the Tom Tailor brand reporting a 17% revenue increase and Bonita achieving sales of EUR350.7m.
However, the company said that bad weather and forced clearance sales at the end of the year left Bonita short of its targets for the year.
Tom Tailor CEO Dieter Holzer outlined plans to open 70 new Tom Tailor stores, about 200 new shop-in-shops and 15 franchise stores in 2014 – and said the company would aim to revitalise Bonita.
“Apart from expanding distribution space, the focus at Tom Tailor is primarily on strengthening the Tom Tailor brands,” he said.
“At Bonita, we will continue to transfer procurement to our own sourcing company and further expand our product expertise through our new design team.”
Holzer said a new focus on sales quality rather than promotions might impact like-for-like sales, but should benefit earnings.
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