AUSTRIA: Wolford swings to EUR 1.2m FY loss
Austrian luxury lingerie and hosiery maker Wolford AG today (24 July) said its full-year results were impacted by the "difficult market environment" and the slowdown in consumer spending, which pushed the company to an annual loss.
Results were also hit by comparisons with a last year's record results, the company said.
Net loss was EUR1.2m (US$1.7m), versus a profit of EUR7.2m the year before. Operating profit fell to EUR2.2m from EUR11.3m last time.
Sales were down 6.5% to EUR147.3m. Adjusted for currency effects, sales fell 5.3%, the company said.
Sales in the Retail segment rose 1.4%, helped by expansion of Wolford's own sales outlets (boutiques, concession shop-in-shops and factory outlets). However, on a like-for-like basis they dropped 9.9%.
Wholesale revenues, which accounted for 57.7% of total Group sales, were down 10.6%.
The company expects "moderate growth" during the current fiscal year, but believes the market will continue to be difficult.
However, as CEO Holger Dahmen points out: "We assume that the [economic] crisis is only of a temporary nature."
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Luxury intimate apparel company Wolford has posted slight first-half earnings growth, having cut costs to offset declining sales during the period....
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