• FY earnings drop to EUR2.81m
  • Sales fall by 0.4% to EUR155.87m
  • Adjusted sales edge up 1%
Wolford booked a decline in sales and earnings

Wolford booked a decline in sales and earnings

Austrian hosiery brand Wolford has booked a decline in sales and earnings in its last fiscal year, despite ongoing efforts to turn around its fortunes.

In the 12 months to the end of May, earnings dropped to EUR2.81m (US$3.8m) from EUR2.76m in the prior year.

Taking account of negative currency effects of about EUR2m, sales declined slightly by 0.4% to EUR155.87m. Adjusted revenues edged up 1% to EUR157.9m.

The US, Wolford's largest single market accounting for 17% of total revenues, generated growth both in the group and in local currency. Sales also increased in the European markets of Italy, Spain, Belgium, Great Britain and Austria.

In contrast, however, revenues in the brand's core markets of Germany and France decreased year-on-year, mainly as a result of a decline in the firm's wholesale business. It did, nonetheless, achieve "substantial" double-digit sales growth in Greater China and the Gulf Region.

"Wolford is striving to achieve operating turnaround in the current financial year 2014/15," said Axel Dreher, speaker of the management board of Wolford. "We are determinedly implementing all strategic refocusing measures for this purpose.

"The product portfolio will be gradually adapted and the collection statement will be sharpened, marketing activities are realigned and intensified, and we are continually optimising our distribution. We want the organisation to be more agile through internal process changes and further enhance our innovative strength."

Wolford said it has generated profit of around EUR7.4m in its first quarter from the sale of non-core land and a lease option.