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DGAP-News: TOM TAILOR GROUP starts successfully into 2014 with an increase in sales and EBITDA

May 7, 2014

DGAP-News: TOM TAILOR Holding AG / Key word(s): Quarter Results TOM TAILOR GROUP starts successfully into 2014 with an increase in sales and EBITDA 08.05.2014 / 07:31 --------------------------------------------------------------------- TOM TAILOR GROUP starts successfully into 2014 with an increase in sales and EBITDA - Group sales up 6.0% to EUR 208.7 million in the first quarter - Recurring EBITDA grows 12.1% to EUR 11.1 million - TOM TAILOR e-commerce increases sales significantly by 40.6% - BONITA strengthens profitability and sees a decline in sales as expected - Group's gross profit margin rises by 320 basis points to 56.9% Hamburg, 08 May 2014. TOM TAILOR GROUP looks back on a dynamic first quarter. Group sales increased by 6.0% to EUR 208.7 million in the first three months of the current fiscal year (2013: EUR 196.8 million). This rise is attributable to the positive development of the two TOM TAILOR segments, which saw an increase in sales of 13.3% to EUR 140.3 million (2013: EUR 123.8 million). In contrast, sales in the BONITA segment declined by 6.3% to EUR 68.4 million (2013: EUR 73.0 million) in favour of an increase in profitability. The Group's recurring EBITDA went up 12.1?% to EUR 11.1 million, while the reported EBITDA even surged by 57.1% to EUR 9.9 million. "We got off to a good start in 2014. Our TOM TAILOR brand continued on its course in all sales channels without interruption and outperformed the market. BONITA's development has confirmed our strategy of working to boost long-term profitability by concentrating on qualitative sales. We will continue resolutely on this path in the coming quarters and we are confident to develop BONITA within the next 12 - 24 months to a market performer," said Dieter Holzer, Chief Executive Officer of TOM TAILOR Holding AG. Growth driver TOM TAILOR Retail Sales in the TOM TAILOR Retail segment again grew over proportionately by 22.3% to EUR 59.2 million (2013: EUR 48.4 million). The increase in like-for-like sales amounted to 9.6% (2013: 2.3%).TOM TAILOR Retail therefore once again performed better than the industry, which grew by 3% in the first quarter. TOM TAILOR's e-commerce also contributed to the segment's growth with an increase in sales by 40.6% to EUR 11.1 million (2013: EUR 7.9 million). The TOM TAILOR Retail segment accounted for 28.4% of Group sales (2013: 24.6%). Sales in the TOM TAILOR Wholesale segment rose 7.6% to EUR 81.1 million in the first three months of the year (2013: EUR 75.4 million). Since the beginning of the year, TOM TAILOR Wholesale further increased the number of shop-in-shop sales areas by 60 to 2,329. The number of franchise stores grew by two stores to a current total of 199. The wholesale business accounted for 38.9% of Group sales (2013: 38.3%). BONITA drives gross profit margin by 870 basis points The BONITA brand only comprises own retail stores and, since the middle of 2013, e-commerce. As expected, BONITA's sales declined by 6.3% to EUR 68.4 million in the first quarter of 2014 (2013: EUR 73.0 million). This was primarily attributable to the conscious reduction in sales promotions with a view to strengthen both sales quality and profitability. The gross profit margin of BONITA thus significantly improved by 870 basis points to 69.3% (2013: 60.6%) in the first quarter - also as a result of the further shift of the brand's sourcing activities to Asia. BONITA accounted for 32.8% of Group sales (2013: 37.1%). Considerable rise in gross profit margin boosts earnings The Group's gross profit margin increased by 320 basis points to 56.9% (2013: 53.7%). This positive development was in particular due to the improvement in BONITA's gross profit margin, the larger retail share and an increase in efficiency in the Company's sourcing organisation in Asia. Recurring earnings before interest, tax, depreciation and amortisation (EBITDA) increased in the first three months by 12.1% to EUR 11.1 million (2013: EUR 9.9 million). The recurring EBITDA margin came to 5.3% (2013: 5.0%). The reported Group EBITDA went up by 57.1% to EUR 9.9 million (2013: EUR 6.3 million); the reported EBITDA margin climbed as a result to 4.7% (2013: 3.2%). The recurring net result for the period came in at EUR -3.8 million in the first quarter of 2014 (2013: EUR -3.8 million), putting it on a par with the previous year. Recurring earnings per share (EPS) amounted to EUR -0.15 (2013: EUR -0.16). The reported net result for the year went up by 22.1% to EUR -6.7 million (2013: EUR -8.6 million). Reported earnings per share amounted to EUR -0.29, up from EUR -0.40 in the previous year. In the first three months of the year, cash flow from operating activities was on a par with the previous year at EUR -11.7 million (2013: EUR -10.9 million), reflecting the build-up of stock at the beginning of the year and the continued expansion. Free cash flow improved by EUR 3.8 million to EUR -17.1 million (2013: EUR -20.9 million) as a result of lower capital expenditure and interest payments. Net debt amounted to EUR 237.6 million and thus remained significantly below the level of the first quarter of 2013 of EUR 270.6 million. Focus on profitable growth The Management Board of TOM TAILOR GROUP is looking ahead confidently to the current fiscal year and expects a further sustainable improvement in the quality of sales and earnings at BONITA, as well as continued dynamic growth for the TOM TAILOR brands. The Company will further advance the measures introduced to strengthen its brands, expand the store network in a disciplined manner and apply the successful TOM TAILOR model to BONITA. For the fiscal year 2014, the Group aims at sales of EUR 950 million and a recurring EBITDA margin of around 10%. KEY FIGURES FOR THE GROUP Change in EUR million Q1 2014 Q1 2013 in % Sales 208.7 196.8 6.0 TOM TAILOR Retail 59.2 48.4 22.3 BONITA 68.4 73.0 -6.3 TOM TAILOR Wholesale 81.1 75.4 7.6 Gross profit 118.8 105.7 12.4 Gross profit margin in % 56.9 53.7 Recurring EBITDA 11.1 9.9 12.1 Recurring EBITDA margin in % 5.3 5.0 One-off items 3.5 5.7 -38.6 thereof costs from the integration of BONITA 0.7 3.3 thereof amortisation of the TOM TAILOR/BONITA purchase price allocation 2.3 2.2 EBITDA 9.9 6.3 57.1 EBITDA margin in % 4.7 3.2 Recurring net result for the period -3.8 -3.8 Adjusted earnings per share (in EUR) -0.15 -0.16 6.3 One-off items including deferred taxes 2.9 4.8 -39.6 thereof purchase price allocation 1.5 Net result for the period -6.7 -8.6 22.1 Earnings per share (in EUR) -0.29 -0.40 Cash flow from operating activities -11.7 -10.9 -7.3 Cash outflow from investing activities 4.1 8.1 -49.4 31.03.2014 31.03.2013 Change in % Total assets 755.6 771.2 -2.0 Equity 216.8 213.2 1.7 Equity ratio (in %) 28.7 27.6 Cash and cash equivalents 39.6 45.0 -11.3 Net debt 237.7 270.6 -12.2 Absolute Points of sale 31.03.2014 31.12.2013 change Retail stores 1,369 1,364 5 Franchise stores 199 197 2 Shop-in-shops 2,329 2,269 60 About TOM TAILOR GROUP TOM TAILOR GROUP is an international fashion and lifestyle company offering stylish casual wear and accessories in the medium price range through its brands TOM TAILOR and BONITA. The TOM TAILOR 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 TOM TAILOR GROUP since August 2012. BONITA sells menswear and womenswear collections for the over-40 age group. Further information is also available at and Media and investor contact Felix Zander Head of Investor Relations & Corporate Communications TOM TAILOR GROUP Tel: +49 (0) 40 58956-449 Email: Erika Kirsten Manager Corporate Communications TOM TAILOR GROUP Tel: +49 (0) 40 58956-420 Email: End of Corporate News --------------------------------------------------------------------- 08.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at and --------------------------------------------------------------------- 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: Internet: 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 --------------------------------------------------------------------- 267094 08.05.2014

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Source: DGAP Corporate News

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