Tom Tailor saw its wholesale revenues rise 9%

Tom Tailor saw its wholesale revenues rise 9%

Fashion company Tom Tailor Group returned to profitability in 2014 for the first time since acquiring Bonita in 2012, thanks to a change of strategy for the brand.

Announcing preliminary full-year figures, the German business said sales had risen 3% to EUR932m (US$1.07bn), while EBITDA was up more than 10% on 2013.

Tom Tailor wholesale revenues moved up 9% to EUR331m, thanks to 417 new shop-in-shops, nine new franchise stores and 1,005 additional multi-label partners.

The brand’s retail sales rose 8% to EUR275m, with like-for-likes up 1.4%, although gross margin was below last year thanks to the promotional environment.

Promotions for Bonita were scaled back, sending sales down 7% to EUR326m, but boosting gross profit margin by more than 5.5 percentage points and enabling the brand to make a positive contribution to earnings.

“We have developed quite successfully in a very challenging market environment,” said Dieter Holzer, Tom Tailor Holding CEO.

“The Tom Tailor Group has continued to grow and returned to a positive net income in 2014. Both brands contributed to the increase in earnings.”