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DGAP-News: TOM TAILOR GROUP posts strong increase in sales and earnings in first half of 2014

August 5, 2014

DGAP-News: TOM TAILOR Holding AG / Key word(s): Half Year Results TOM TAILOR GROUP posts strong increase in sales and earnings in first half of 2014 06.08.2014 / 07:30 --------------------------------------------------------------------- - Group sales up 4.5% to EUR 425.2 million - TOM TAILOR brands with strong 11.0% sales increase - Group EBITDA rises by 69.4% to EUR 29.3 million - EBITDA at BONITA leaps from EUR 0.6 million to EUR 9.0 million - Guidance for 2014 confirmed Hamburg, August 6, 2014. The TOM TAILOR GROUP continued to systematically build on its strong first-quarter momentum. The Group recorded a surge in sales and income in the first half of 2014 increasing sales by 4.5% to EUR 425.2 million (previous year: EUR 407.0 million). Growth was driven particularly by the TOM TAILOR brands, whose sales increased by 11.0% to EUR 271.4 million (previous year: EUR 244.5 million), backed by gains across all sales channels. BONITA contributed EUR 153.8 million to Group sales in the first half of the year (previous year: EUR 162.5 million). The Group's reported earnings before interest, taxes, depreciation and amortization (EBITDA) rose to EUR 29.3 million, as compared with EUR 17.3 million in the prior-year period. This represents an increase of 69.4%. The recurring EBITDA increased by 18.2% to EUR 30.5 million (previous year: EUR 25.8 million). "Our focus on profitable growth continuous to pay off. A major contribution came from the TOM TAILOR segment, with the retail business once again succeeding in detaching itself from the stagnating market trend. BONITA develops as forecasted. Our focus on sales quality and therefore profitability at the expense of overall sales volume is already reflected in our positive earnings development.", said Dieter Holzer, CEO of TOM TAILOR Holding AG. Continued dynamic growth of TOM TAILOR brands The main driver behind the Group's strong sales growth was TOM TAILOR. In the Retail segment, the brand's sales increased by 14.8% to EUR 123.8 million (previous year: EUR 107.8 million). TOM TAILOR e-commerce also showed dynamic growth, with sales up 19.3% to EUR 22.1 million (previous year: EUR 18.5 million). On a like-for-like basis, the upward trend in TOM TAILOR Retail sales also continued, with a 5.5% rise in sales. The TOM TAILOR Wholesale segment increased sales by 8.0% in the reporting period to EUR 147.6 million (previous year: EUR 136.7 million), benefiting from strong demand from major customers. Moreover, TOM TAILOR increased the number of shop-in-shops by 139 since the beginning of the year to 2,408. The number of franchise stores increased by two to 199. BONITA generated sales of EUR 153.8 million in the first half of the year (previous year: EUR 162.5 million). The decrease is primarily a reflection of the strategic decision to reduce the number of sales promotions significantly to focus on improving the quality of BONITA's sales in the long term. On a like-for-like basis, sales at BONITA were down 8.7%. Gross profit margin reflects improvements at BONITA In the first half of the year the gross profit margin of TOM TAILOR GROUP was up 2.4 percentage points to 58.6% (previous year: 56.2%), and reached 60.3% in the second quarter (previous year: 58.6%). This improvement can be attributed to two main factors: the increased gross margin at BONITA due to the reduction in promotions and the improved product content as well as the pooling of additional procurement volumes in our own TOM TAILOR sourcing company in Asia. Substantial overall improvement in earnings situation Reported EBITDA for the first six months of the year jumped by 69.4% to EUR 29.3 million (previous year: EUR 17.3 million). This strong year-on-year growth can be attributed to the favorable business development of the company as well as the completed integration of BONITA in 2013. As compared with EUR 7.1 million in the previous year, one-off items fell to EUR 0.7 million in the first half of 2014. Adjusted for one-off items, the Group's recurring EBITDA increased by 18.2% to EUR 30.5 million (previous year: EUR 25.8 million). The recurring EBITDA margin rose to 7.2% (previous year: 6.3%). Cash flow from operating activities rose by EUR 2.2 million in the first half of the year to EUR 6.7 million (previous year: EUR 4.5 million). This increase and the company's restrictive approach to investment, geared to profitability, resulted in a substantial EUR 9.4 million increase in free cash flow (operating cash flow less investments and net interest income) to EUR -6.3 million (previous year: EUR -15.7 million). The net debt decreased compared to the first half-year 2013 by EUR 34.9 million to EUR 235.9 million (previous year: EUR 270.8 million). Recurring net income of TOM TAILOR GROUP for the first six months of 2014 was EUR -0.3 million (previous year: EUR -3.4 million). The recurring net earnings per share (EPS) therefore amounted to EUR -0.08 (previous year: EUR -0.25). The reported net income for the period was EUR -5.3 million (previous year. EUR -13.9 million), leading to earnings per share of EUR -0.27 (previous year: EUR -0.69). TOM TAILOR confirms its guidance for 2014 The TOM TAILOR GROUP evaluates the prospects for the second half of the year as steady and expects the consumer climate in its core markets to remain upbeat. The Group will continue to pursue the measures taken to improve the sales and earnings potential of BONITA and to leverage the TOM TAILOR brand relaunch to increase its market penetration. Consequently, the TOM TAILOR GROUP is confirming its forecast for the 2014 financial year. The company aims to achieve Group sales of more than EUR 950 million and a recurring EBITDA margin of roughly 10%. KEY FIGURES FOR THE GROUP Q2 Q2 Change H1 H1 Change in EUR million 2014 2013 in % 2014 2013 in % Sales 216.5 210.1 3.0 % 425.2 407.0 4.5 % TOM TAILOR retail 64.6 59.4 8.8 % 123.8 107.8 14.8 % BONITA 85.4 89.4 -4.5 % 153.8 162.5 -5.4 % TOM TAILOR wholesale 66.5 61.3 8.5 % 147.6 136.7 8.0 % Gross profit 130.5 123.1 6.0 % 249.3 228.9 8.9 % Gross profit margin in % 60.3 58.6 58.6 56.2 Recurring EBITDA 19.4 15.9 22.0 % 30.5 25.8 18.2 % Recurring EBITDA margin in % 9.0 7.6 7.2 6.3 One-off items 0 4.9 -100 % 1.2 8.5 -85.9 % thereof costs from the integration of BONITA 0 3.8 0.7 7.1 thereof refinancing costs/note loans 0 0.8 0 0.8 thereof other one-off items 0 0.3 0.5 0.7 EBITDA 19.4 11.0 76.4 % 29.3 17.3 69.4 % EBITDA margin in % 9.0 5.2 6.9 4.3 Recurring net result for the period 3.5 0.4 775.0 % -0.3 -3.4 91.2 % Recurring earnings per share (in EUR) 0.10 -0.05 300 % -0.08 -0.25 68.0 % One-off items including deferred taxes 2.1 5.7 -63.2 % 5.0 10.5 -52.4 % thereof purchase price allocations 1.6 1.5 3.2 3.1 Net result for the period 1.4 -5.3 126.4 % -5.3 -13.9 61.9 % Earnings per share (in EUR) 0.02 -0.29 106.9 % -0.27 -0.69 60.9 % Cash flow from operating activities 18.3 15.4 18.8 % 6.7 4.5 48.9 % Cash outflow from investing activities 3.0 6.6 -54.5 % 7.1 14.4 -50.7 % 30.06.2014 31.12.2013 Change in % Total assets 759.4 759.6 -0.03 % Equity 215.1 221.7 -3.0 % Equity ratio (in %) 28.3 29.2 Cash and cash equivalents 33.6 47.1 -28.7 % Net debt 235.9 218.5 8.0 % Net debt/recurring EBITDA 109.7 98.6 Absolute Points of sale 30.06.2014 31.12.2013 change Retail stores 1,374 1,364 10 Franchise stores 199 197 2 Shop-in-shops 2,408 2,269 139 About TOM TAILOR GROUP The TOM TAILOR GROUP is an international fashion and lifestyle company offering fashionable casual wear and accessories in the medium price range under the brands TOM TAILOR, TOM TAILOR Denim, TOM TAILOR POLO TEAM, BONITA and BONITA men. Since August 2014, TOM TAILOR has presented a new brand image to the market. By sharpening its core brand, TOM TAILOR is positioning itself as a new urban player, backed by a redefined brand claim, "Life is a game, play it, be confident, dress in style". The TOM TAILOR 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 part of the TOM TAILOR GROUP since August 2012. BONITA sells women's and men's wear collections for the over-40 age group. Further information is also available at www.tom-tailor-group.com and www.bonita.eu Media and investor contact Felix Zander Head of Investor Relations & Corporate Communications TOM TAILOR GROUP Tel: +49 (0) 40 58956-449 Email: felix.zander@tom-tailor.com Erika Kirsten Manager Corporate Communications TOM TAILOR GROUP Tel: +49 (0) 40 58956-420 Email: erika.kirsten@tom-tailor.com --------------------------------------------------------------------- 06.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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 --------------------------------------------------------------------- 280961 06.08.2014


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