Dieter Holzer, Chairman of the Management Board (CEO) of Tom Tailor Holding AG
07 Nov. 2013
Tom Tailor Group boosted its sales by 30.6%Today Tom Tailor Group announces that sales and earnings rose in the third quarter of 2013. Between July and September, the Company boosted its sales by 30.6% to EUR 249.0 million and increased its recurring earnings before interest, taxes, depreciation and amortisation (EBITDA) to EUR 21.4 million (previous year: EUR 19.1 million). All of the Group’s sales channels contributed to the sales growth in the third quarter. The Bonita umbrella brand recorded like-for-like sales growth of 5.3% for the first time since it was taken over by Tom Tailor Group. As announced with the capital increase at the end of October, the Group reported a sales increase of 64.6% to EUR 656.0 million in the first nine months. The recurring EBITDA jumped 52.8% to EUR 47.2 million.
“The benefits of further integrating Bonita and Tom Tailor became visible for the first time in the third quarter. Our retail business grew significantly on a like-for-like basis, outperforming the overall market trend. Thanks to our efficient platform, we are in an excellent position to take full advantage of the upcoming Christmas shopping season, while our stronger equity base will enable us to pursue our growth course at the same time,” said Dieter Holzer, Chairman of the Management Board (CEO) of TOM TAILOR Holding AG.
The expansion of the Tom Tailor umbrella brand had a positive impact on sales across all sales channels. In the first nine months, its retail segment grew its sales by 28.4% to EUR 174.9 million (previous year: EUR 136.2 million). The like-for-like increase in sales amounted to 7.8%, while the overall market declined 2.0%. The brand has achieved growth for its 19th consecutive quarter. The brand’s dynamic e-commerce business also contributed with sales up 19.1% to EUR 28.0 million (previous year: EUR 23.5 million). Supported by the TV advertising campaign, e-commerce sales even increased 27.2% in the third quarter.
Sales in the Bonita segment, which comprises its retail stores and the e-shop launched at the beginning of June, came to EUR 254.2 million in the first nine months. Bolstered by the positive effects of the shorter lead times and the new design process, like-for-like sales grew in the third quarter by 5.3% for the first time since the BONITA takeover.
The Group’s gross profit margin improved 4.0 percentage points to 54.7% in the first nine months (previous year: 50.7%), primarily as a result of the higher share of retail sales and a further increase in direct sourcing through the Group’s own procurement unit in Asia.
Adjusted for one-off items from the takeover and integration of BONITA, EBITDA rose 52.8% to EUR 47.2 million (previous year: EUR 30.9 million). The increase in sales and the improved gross profit margin were countered by higher operating expenses related to the Group’s further expansion of its retail business and higher marketing costs. The recurring EBITDA margin came to 7.2% (previous year: 7.8%). Reported EBITDA climbed 47.8% in the first nine months, from EUR 24.7 million in the previous year to EUR 36.5 million as of 30 September 2013.
The recurring financial result amounted to EUR -9.6 million (previous year: EUR -7.0 million). The figure reflects higher interest expenses for financing the takeover of BONITA and a seasonal increase in the utilisation of credit lines. The reported financial result came in at EUR -12.5 million (previous year: EUR -9.5 million) and includes additional non-cash expenses of EUR 2.8 million (previous year: EUR 2.4 million) for the refinancing carried out in 2012.
Tom Tailor Group’s net debt totalled to EUR 276.1 million as of 30 September 2013, compared to EUR 279.4 million in the previous year. The equity ratio amounted to 26.1% at the end of the reporting period (previous year: 28.4%). It carried out a cash capital increase at the end of October to give itself the flexibility and solid capital base needed to pursue its growth course. The Company issued approximately 1.8 million new shares to institutional investors in Germany and abroad, thereby generating gross proceeds of EUR 29.5 million. The funds will primarily be used to reduce gearing and to strengthen the equity ratio, which will be brought back into atarget range of between 30% and 35% going forward.
For the full year 2013, the Group announced to expect record sales of between EUR 890 and 910 million and a recurring EBITDA of between EUR 85 and 95 million.
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