Tom Tailor Holding SE Reports Earnings Results for the Second Quarter and First Half of 2018; Provides Earnings Guidance for the Year 2018
While the German fashion market has shrunk on average by 2% in the past six months, the Hamburg fashion company was able to increase sales of its TOM TAILOR brands by 1.2% to 277.8 million (H1 2017 less the decline in sales through the RESET program: 274.5 million). Although the Group's total sales fell slightly by 1.0% to 399.3 million - mainly due to technical difficulties in starting up the new e-shops at the beginning of the year and the weak first quarter for BONITA (H1 2017 less the decline in sales through the RESET program: 403.4 million) - however, the Group's reported gross profit margin increased to 60.8% (H1 2017: 56.5%) at the same time. EBITDA was 26.8 million against 30.7 million a year ago. EBIT was 8.0 million against 11.8 million a year ago. Net income for the period was 2.0 million or 0.01 per share against 0.1 million or 0.04 loss per share a year ago. Cash generated from in operations was 4.1 million against 22.2 million a year ago.
In the financial year 2018, the TOM TAILOR GROUP is aiming to compensate in part for the slight decline in sales due to the RESET measures through profitable growth in the core markets and individual growth markets such as Russia and Southeastern Europe. Thus, a moderate increase in the EBITDA margin compared to the previous year is forecast, with an upgrade of the digital infrastructure and analytics capabilities to support this development.