Preliminary figures for fiscal year 2013
Preliminary figures for fiscal year 2013
 

25 Feb. 2014

Tom Tailor presents positive free cash flow at 20.9 million

Tom Tailor Group has published the preliminary figures for fiscal year 2013. The sales target of the company was achieved with 44% growth to € 907,2 million, particularly due to the strong growth of the Tom Tailor brands. The recurring earnings before interest, tax, depreciation and amortization (EBITDA) also increased by 16.1% to €77.2 million, even though the company didn’t reach the targeted range of €85-95 million. Tom Tailor adduces inventory sales at the end of the fourth quarter 2013, which impacted negatively profitability and the decline of sales during Christmas campaign.

If we take a look at the free cash flow of the group minus capital expenditure and interest, Tom Tailor increased it by €47.9 million to €20.9 million, notably because of the strong development of the operating cash flow.

The gross profit margin of Tom Tailor rose to 55.1% last year. This improvement is primarily attributable to the increase in retail share and the further expansion of the company’s own purchasing company for the group’s brands.

Bonita under modification

After acquiring the Bonita brand last year, Tom Tailor Group is now implementing some changes within the brand due to decreasing sales and profitability.

“We covered an incredible – and at times quite rocky – path in 2013 […] However, as for Bonita, we had to implement more substantial measures in the last quarter of the year so as to ensure Bonita will be able to deliver the expected level of profitability in the next one to two years,” said Dieter Holzer, CEO of Tom Tailor.

Effective 1 February 2014, Udo Greiser has been designated sole Managing Director of Bonita. Daniel Peterburs, a new board member responsible for product development, procurement and licensing, will occupy Greiser’s vacancy in Tom Tailor’s Group management board next March.

“We have clear priorities for 2014: to press ahead with the qualitative development of Bonita […] and to further increase profitability in the Tom Tailor concept,” explained Dieter Holzer.

Lorenzo Molina

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