German retailer Tom Tailor has booked a 2.3% rise in first-quarter like-for-like sales, helped by its online business where sales increased by 9.7%.

The Bonita brand, however, was hurt by poor weather conditions and a subsequent drop in store traffic, with like-for-like sales falling 15% between January and March.

However, CEO Dieter Holzer said: "We are highly confident that by shortening Bonita's lead times and restructuring its product development the brand will show again like-for-like growth starting in the fourth quarter."

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TOM TAILOR GROUP: TOM TAILOR UMBRELLA BRAND BRAVES WINTER WEATHER

TOM TAILOR RETAIL ACHIEVES LIKE-FOR-LIKE GROWTH OF 2.3% DESPITE UNFAVOURABLE WEATHER CONDITIONS
DOWNTURN FOR BONITA ON LIKE-FOR-LIKE BASIS IN Q1 2013

HAMBURG, 30 APRIL 2013. IN THE FIRST QUARTER OF 2013, THE TOM TAILOR GROUP WAS UNABLE TO ELUDE WEAK DEVELOPMENTS IN THE TEXTILE MARKET WHICH WERE CAUSED BY POOR WEATHER CONDITIONS. WHILE TOM TAILOR INCREASED SALES IN ITS OWN RETAIL STORES DUE TO ITS TREND MANAGEMENT APPROACH, BONITA WAS NOT ABLE TO FOLLOW THE LEAD FOR SYSTEMIC REASONS. BETWEEN JANUARY AND MARCH 2013, THE GROUP'S CONSOLIDATED RETAIL SALES FELL BY 9.2% ON A LIKE-FOR-LIKE BASIS.

The TOM TAILOR retail stores increased their sales by 20.4%in the quarter under review. On a like-for-like basis, sales increased by 2.3%. The positive development of TOM TAILOR Retail was also driven by thee-commerce business, which increased sales by 9.7% in the first quarter. Thus, TOM TAILOR Retail was once again able to break away from the weak developments in the German textile retail market, which recorded a 6% decline in sales during the first quarter. The unfavourable market development was eminently noticeable in the month of March, which marks the season opening of spring. In this particular month, the textile industry suffered on average losses in sales of 10%, reaching a peak of 22% in the 13th calendar week (source: TW-Testclub 14/2013).

In contrast to TOM TAILOR, BONITA was unable to counteract the challenging weather conditions and the accompanying drop in store traffic. The sales of BONITA were therefore around 6.0% below the level of the prior year quarter. On a like-for-like basis, sales decreased by15.0%.

"Just like the industry as a whole, TOM TAILOR GROUP suffered due to the persistently cold winter weather in the first quarter, which caused a drop in customer footfall in the stores. Despite these highly unfavourable conditions, our umbrella brand TOM TAILOR achieved like-for-like sales growth for the seventeenth consecutive quarter. BONITA failed to tap its potential in the first three months of 2013. However, we are highly confident that by shortening BONITA's lead times and restructuring its product development the brand will show again like-for-like growth starting in the fourth quarter," said Dieter Holzer, CEO of TOM TAILOR Holding AG.

TOM TAILOR GROUP will be publishing its first quarter report 2013 on 08 May 2013.

Original source: http://www.tom-tailor-group.com/en/press/newsdetail/tom-tailor-group-tom-tailor-umbrella-brand-braves-winter-weather/