DGAP-News: TOM TAILOR Holding AG / Key word(s): Final Results
TOM TAILOR GROUP continues course of growth in Fiscal Year 2012
19.03.2013 / 07:30
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TOM TAILOR GROUP continues course of growth in Fiscal Year 2012
- Group sales climb 53.0% to EUR 629.7 million
- TOM TAILOR retail up 33.1%, with like-for-like growth of around 15%
- First-time consolidation of BONITA from August to December
- Gross profit margin rises 3.9 percentage points to 52.9%
- Recurring EBITDA increases 38.3% to EUR 66.5 million
Hamburg, 19 March 2013. TOM TAILOR Holding AG accelerated its course of
growth in Fiscal Year 2012 and once again successfully outperformed the
industry average. Following the acquisition of BONITA, TOM TAILOR became
one of the ten biggest fashion companies in Germany. In 2012 the Group
boosted its sales by 53.0% to EUR 629.7 million (2011: EUR 411.6 million)
and reached its sales target of between EUR 625 and 635 million. On a
like-for-like basis, the Company also grew, recording a sales increase of
4.6%, while the textiles market in Germany closed the year with a sales
decline.
'2012 was a notable year for TOM TAILOR in two respects: We celebrated our
50th anniversary and began a new chapter in our Company's history with the
takeover of BONITA. With two strong, complementary brands, we today meet
customers' demand between the ages of 0 and 60 and have laid the foundation
for accelerated profitable growth. With its two brands, the new TOM TAILOR
GROUP operates around 1,300 own stores as well as 175 franchise stores
across more than 35 countries. We are particularly pleased that, thanks to
our trend management system and our focus on customers' wishes, we were
able to further grow on a like-for-like basis ; we were able to once again
move against the negative market trend. Growth was particularly driven by
our TOM TAILOR retail segment and our online business, where we boosted
sales by more than 40%,' said Dieter Holzer, Chairman of the Management
Board (CEO) of TOM TAILOR Holding AG.
'Due to our major acquisition 2012 has become a transition year for TOM
TAILOR GROUP. 2013 will thus be a year of integration: we will put all our
effort into uniting the strengths of TOM TAILOR and BONITA. We are creating
an efficient infrastructure which will enable us to achieve economies of
scale and further increase profitability. We are aiming to achieve an
EBITDA margin of 15% by 2017 at the latest. Our long-term goal is to make
TOM TAILOR GROUP one of the biggest fashion and lifestyle companies in
continental Europe,' added Dieter Holzer.
In the reporting period TOM TAILOR GROUP increased its sales to EUR 629.7
million (2011: EUR 411.6 million). Since the BONITA brand was consolidated
pro rata from August onwards, it is only possible to make a limited
comparison between figures of 2012 and the previous year. BONITA's
contribution to Group sales over five months amounted to EUR 153.9 million.
The Group's successful performance was primarily driven by expanding its
retail segment, enhancing its e-commerce and increasing its marketing
activities. In addition, the new TOM TAILOR POLO TEAM brand which offers
premium sportswear fashion was launched in July. In the wholesale segment,
TOM TAILOR also realized further growth increasing sales by 5.1% to EUR
270.0 million (2011: EUR 257.0 million.)
In Germany, the Group achieved sales of EUR 419.2 million (2011: EUR 267.0
million). Foreign sales went up by 45.6% to EUR 210.5 million (2011: EUR
144.6 million).
Retail sales increase to EUR 359.7 million
The retail segment of the GROUP, which includes TOM TAILOR retail and
BONITA, recorded overall sales of EUR 359.7 million. This represents a rise
of 132.6% (2011: EUR 154.6 million). BONITA accounted for 42.8% of overall
retail sales.
TOM TAILOR retail - like-for-like growth of 14.6%
The TOM TAILOR retail segment, which comprises own retail stores and the
e-commerce activities of the TOM TAILOR brand, was once again the main
growth driver last year. As a result of the further expansion of controlled
distribution area, the number of retail stores in Germany and abroad rose
by 67 to 315. Sales in the TOM TAILOR retail segment increased by 33.1% to
EUR 205.8 million in 2012 (2011: EUR 154.6 million). On a like-for-like
basis, they were up by a very pleasing 14.6%. Thus, TOM TAILOR retail grew
for the fourth year in a row and once again outperformed the average for
the German textile industry. The sector closed the year down 2%, thereby
recording its first drop in sales since 2008 [Source: TW Testclub 01/2013].
TOM TAILOR also continued its dynamic growth in its online business, where
sales climbed by 42.9% to EUR 35.3 million (2011: EUR 24.7 million). The TV
advertising campaign in spring and autumn contributed greatly to this sharp
sales increase.
BONITA - contribution of EUR 153.9 million to Group sales
The BONITA brand, which is sold via 982 own retail stores, generated sales
of EUR 153.9 million in the period from August to December. This was a
year-on-year decline of around 1.2%. Unlike TOM TAILOR, BONITA was unable
to escape from the overall negative market trend and, in particular, was
adversely affected by the mild temperatures in the key month of December.
On a like-for-like basis, sales of BONITA fell by 4.3% between August and
December.
Wholesale segment continues to be strong pillar with sales of EUR 270.0
million
In the TOM TAILOR wholesale segment, which is responsible for selling the
TOM TAILOR brand via retail partners, the Group also further increased
controlled selling space: The number of shop-in-shops rose by 245 to 2,031
and the number of franchise stores grew by 20 to 175. The wholesale segment
grew sales by a pleasing 5.1% to EUR 270.0 million (2011: EUR 257.0
million).
Gross profit margin raised to 52.9%
The active expansion of the retail segment as a result of TOM TAILOR
retail's strong performance and the consolidation of BONITA with its
attractive gross profit margins had a positive effect on the Group's gross
profit margin. The higher order volumes that followed the TOM TAILOR
GROUP's expansion and the cost savings generated by the new sourcing
organisation in Asia also had a positive impact. Compared to the previous
year, the gross profit margin improved by 3.9 percentage points to 52.9% in
2012; in the fourth quarter it even reached a level of 56.7%.
In the reporting period the Company incurred one-off transaction costs of
EUR 19.5 million for BONITA, as well as higher marketing expenses for the
TOM TAILOR TV advertisement and the launch of the TOM TAILOR POLO TEAM
brand. The reorganisation of sourcing structures in Asia also had an impact
on profitability. Earnings before interest, tax, depreciation and
amortisation (EBITDA) adjusted for these special items grew by 38.3% to EUR
66.5 million (2011: EUR 48.1 million). However, earnings were affected by
the inability of BONITA and the wholesale segment's repeat order business
to escape the overall negative market trend in the fourth quarter, which
resulted in their sales and earnings being lower than expected. Including
these one-off factors, the reported EBITDA increased by 18.6% to EUR 55.0
million (2011: EUR 46.4 million).
The retail segment consisting of TOM TAILOR and BONITA recorded a
significant year-on-year increase in recurring EBITDA to EUR 43.7 million
(2011: EUR 16.4 million). BONITA contributed EUR 22.8 million to this
result. The TOM TAILOR wholesale segment posted recurring EBITDA of EUR
23.1 million (2011: EUR 31.7 million).
The GROUP's net result adjusted for special items came to EUR 18.9 million
in 2012 (2011: EUR 15.0 million). This represents an increase of 26.0%.
Recurring earnings per share were EUR 0.81, down from EUR 0.91 in 2011. The
decrease was due to the increased average number of shares following the
cash capital increase and issue of new shares to finance parts of the
purchase price of BONITA.
The reported net result for the period reflects the acquisition of BONITA
and amounted to EUR 3.1 million for Fiscal Year 2012 (2011: EUR 10.1
million). Reported earnings per share were EUR 0.01 (2011: EUR 0.59).
Higher operating cash flow - solid capital base
The cash flow from operating activities remained stable at EUR 20.4 million
(2011: EUR 20.5 million) despite the acquisition and financing costs for
BONITA and the increased marketing expenses. The cash outflow from
investing activities totalled EUR 148.8 million (2011: EUR 22.2 million)
and largely reflected the takeover of BONITA. The cash flow from financing
activities increased from EUR -5.2 million in 2011 to EUR 187.0 million.
This jump was mainly due to the cash capital increase and issue of 1.6
million new shares in the course of the takeover of BONITA, as well as the
refinancing of bank liabilities. TOM TAILOR also refinanced an amount of
EUR 225.0 million in February 2012.
Net debt stood at EUR 247.8 million as of the reporting date (2011: EUR
74.6 million). The year-on-year increase resulted primarily from the
acquisition of BONITA and the continued accelerated expansion of TOM
TAILOR. Due to the changed financing structure following the takeover and
due to the increase in total assets, the equity ratio slightly decreased to
28.4% as of the reporting date (31 December 2011: 35.5%). Going forward TOM
TAILOR GROUP is aiming at an equity ratio of more than 30%.
Outlook: Integration of BONITA and continued course of growth
For the 2013 financial year, TOM TAILOR Holding AG aims to achieve sales of
at least EUR 900 million and a recurring EBITDA margin of at least 12%.
Both brands should contribute to the additional profitable growth. The
Group expects to create economies of scale from the integration of BONITA,
as well as from the additional expansion of the business. In addition, the
Company expects to generate cost savings through greater use of its
sourcing organisation in Asia.
'The successful performance of our Company in 2012 provides an insight into
the huge potential of our Group. We have two well-established umbrella
brands whose strengths ideally complement each other. This puts us in an
excellent position to continue growing at an even faster rate. In the
current Fiscal Year our clear focus will be on two strategic objectives: We
will further follow our expansion strategy and continue the integration of
BONITA, which we expect to complete by and large by year end. We are
certain that BONITA, with its concentration on sales via retail stores as
well as its very attractive gross profit margins, will make a substantial
contribution to our Group's earnings growth,' commented Dieter Holzer.
The integration of BONITA aims at creating a joint infrastructure. The key
focus will be on product development, merchandising, sourcing and
logistics. For example, BONITA's product development process is being
significantly shortened, which should have a positive impact on BONITA's
like-for-like growth from earliest Q4 2013 onwards.
TOM TAILOR GROUP will also further drive expansion by actively increasing
its controlled distribution area in Germany and abroad. The Group plans to
open 60 TOM TAILOR stores and around 40 BONITA and BONITA men stores. In
terms of regions, it will be concentrating on its core markets Germany,
Austria and Switzerland. In addition, the extremely successful TOM TAILOR
online shop will be replicated for BONITA, with a BONITA online shop set to
go live latest in the third quarter the middle of the year. The Group also
plans to further expand its wholesale business, which represents a further
strong sales channel for the TOM TAILOR brand. To this end, approximately
200 new shop-in-shop selling spaces and around 20 franchise stores are to
be opened in 2013.
Alongside its targets for the current Fiscal Year, TOM TAILOR GROUP is
furthermore making a medium-term forecast for the first time: The Group is
aiming for an EBITDA margin of 15% by 2017 at the latest.
KEY FIGURES FOR THE GROUP Change
EUR million 2012 2011 in %
Sales 629.7 411.6 53.0
TOM TAILOR retail 205.8 154.6 33.1
BONITA 153.9 n/a n/a
TOM TAILOR wholesale 270.0 257.0 5.1
Gross profit 333.2 201.6 65.3
Gross profit margin in % 52.9 49.0
Recurring EBITDA 66.5 48.1 38.3
Recurring EBITDA margin in % 10.6 11.7
One-off items 11.5 1.7 576.5
EBITDA 55.0 46.4 18.5
EBITDA margin in % 8.7 11.3
Recurring EBIT 34.1 27.8 22.7
Recurring EBIT margin in % 5.4 6.8
One-off items (excluding deferred taxes)
thereof amortisation of the TOM TAILOR/BONITA
purchase price allocation 6.4 5.3
thereof BONITA acquisition 14.8 0.0
thereof BONITA negative goodwill -11.1 0.0
thereof BONITA integration 4.4 0.0
EBIT 16.2 20.8 -22.1
EBIT margin in % 2.6 5.1
Recurring net result for the period 18.9 15.0 26.0
Recurring earnings per share (in EUR)* 0.81 0.91 -11.0
One-off items including deferred taxes 15.8 4.9 222.4
thereof purchase price allocation 4.5 3.7
Net result for the period 3.1 10.1 -69.3
Earnings per share (in EUR)* 0.01 0.59
Cash flow from operating activities 20.4 20.5 -0.5
Cash outflow from investing activities 35.6 22.6 57.5
31.12.2012 31.12.2011 Change in %
Total assets 771.2 320.5 140.6
Equity 218.9 113.7 92.5
Equity ratio (in %) 28.4 35.5
Cash and cash equivalents 53.4 9.3 474.2
Net debt 247.8 74.6 232.2
Net debt/recurring EBITDA < 2.5** 1.6
* 2012: dilutive effect from cash and capital increase in kind in Q3
** pro forma figure for fiscal year 2012
Points of sale 31.12.2012 31.12.2011 Absolute change
Retail stores 1,297 248 1,049
Franchise stores 175 155 20
Shop-in-shops 2,031 1,786 245
About TOM TAILOR GROUP
The TOM TAILOR GROUP is an international fashion and lifestyle company
offering stylish casual wear and accessories in the medium price range
through its umbrella brands TOM TAILOR and BONITA. The TOM TAILOR umbrella
brand comprises the brands TOM TAILOR Casual, TOM TAILOR Denim and TOM
TAILOR POLO TEAM. Its collections are aimed at customers aged between 0 and
40 and are marketed in more than 35 countries via its wholesale and retail
segments. BONITA, one of Germany's leading fashion brand producers and
retailers, has been a part of the TOM TAILOR GROUP since August 2012.
BONITA sells mens- and womenswear collections for the over-40 age
group.
In the 2012 financial year, the TOM TAILOR GROUP recorded sales of EUR
629.7 million, of which EUR 153.9 million was generated by BONITA. The
Group has approximately 1,300 of its own stores in the retail segment. 982
of these are BONITA and BONITA men stores and 315 are TOM TAILOR stores.
The TOM TAILOR brand is also sold via retail partners. At the end of 2012,
these comprised 175 franchise stores, 2,031 shop-in-shops and around 6,300
multi-label points of sale.
Further information is also available at www.tom-tailor-group.com and
www.bonita.eu
Media and investor contact
Dr Andrea Rolvering
Head of Investor Relations & Corporate Communications
TOM TAILOR GROUP
Phone.: +49 (0) 40 58956-429
Fax: +49 (0) 40 58956-199
Email: anr@tom-tailor.com
Erika Kirsten
Corporate Communications
TOM TAILOR GROUP
Phone.: +49 (0) 40 58956-420
Fax: +49 (0) 40 58956-199
Email: ek@tom-tailor.com
End of Corporate News
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Language: English
Company: TOM TAILOR Holding AG
Garstedter Weg 14
22453 Hamburg
Germany
Phone: +49 (0) 40 589 56 0
Fax: +49 (0) 40 589 56 398
E-mail: info@tom-tailor.com
Internet: www.tom-tailor-group.com
ISIN: DE000A0STST2
WKN: A0STST
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in Berlin, Düsseldorf, Hannover, München,
Stuttgart
End of News DGAP News-Service
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204324 19.03.2013
DGAP-News: TOM TAILOR GROUP continues course of growth in Fiscal Year 2012
| Source: EQS Group AG