DGAP-News: TOM TAILOR GROUP records strong growth in third quarter of 2013

DGAP-News: TOM TAILOR GROUP records strong growth in third quarter of 2013

DGAP-News: TOM TAILOR Holding AG / Key word(s): Quarter Results
TOM TAILOR GROUP records strong growth in third quarter of 2013

07.11.2013 / 07:30


TOM TAILOR GROUP records strong growth in third quarter of 2013

  - Sales up 30.6% in third quarter as a result of growth across all sales

  - EBITDA jumps 52.8% in the nine-month period due to increase in sales
    and higher gross profit margin

  - BONITA benefits from shortened lead times

  - Proceeds of EUR 29.5 million from cash capital increase strengthen
    capital base

Hamburg, 7 November 2013. TOM TAILOR GROUP's 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.

TOM TAILOR umbrella brand enjoys solid growth on a like-for-like basis and
as a result of sales area expansion

The expansion of the TOM TAILOR umbrella brand had a positive impact on
sales across all sales channels. In the first nine months, the TOM TAILOR
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%. TOM TAILOR 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.

Despite the on-going challenges in the wholesale market, the Company
boosted sales in its wholesale segment by 10.7% to EUR 226.9 million in the
first nine months (previous year: EUR 205.0 million). Since the beginning
of the year, TOM TAILOR has increased the number of shop-in-shops by 198 to
2,229 and franchise stores by eleven to 186.

Shorter lead times take effect at BONITA

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.

Gross profit margin increases by 4 percentage points and EBITDA improves

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.

Operating cash flow substantially higher

Cash flow from operating activities rose considerably by EUR 45.1 million
to EUR 10.4 million (previous year: EUR -34.7 million). Apart from the
transaction costs included in the previous year's figure, the further
optimized working capital management at BONITA compared with the previous
year had a positive effect in particular. TOM TAILOR GROUP's recurring net
result for the first nine months of 2013 came to EUR 0.2 million (previous
year: EUR 5.5 million). Recurring earnings per share therefore amounted to
EUR 0.01 (previous year: EUR 0.21). The reported net result for the period
fell to EUR -13.9 million (previous year: EUR -3.5 million), while reported
earnings per share stood at EUR -0.57 (previous year: EUR -0.19).

Strengthened equity base to continue growth course

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%). TOM TAILOR GROUP 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.

Outlook reiterated for the full year 2013 

Based on its good performance in the third quarter and under the premise of
a stable market environment, TOM TAILOR GROUP is confidently looking ahead
to the remaining weeks of 2013 and the industry's all-important Christmas
shopping season.

The Company is thus reiterating its forecast, which it adjusted slightly in
August: For the full year 2013, the Group expects to record sales of
between EUR 890 and 910 million and a recurring EBITDA of between EUR 85
and 95 million.

                                                   Chan-              Chan-
KEY FIGURES FOR THE GROUP                Q3    Q3  ge in    9M    9M  ge in
in EUR million                         2013  2012      %  2013  2012      %

Sales                                 249.0 190.7  30.6  656.0 398.5   64.6
TOM TAILOR Retail                      67.1  50.6  32.6  174.9 136.2   28.4
BONITA                                 91.7  57.3  60.0  254.2  57.3 >100.0
TOM TAILOR Wholesale                   90.2  82.8   8.9  226.9 205.0   10.7

Gross profit                          129.8  97.1  33.7  358.7 202.0   77.6
Gross profit margin in %               52.1  50.9         54.7  50.7

Recurring EBITDA                       21.4  19.1  12.0   47.2  30.9   52.8
Recurring EBITDA margin in %            8.6  10.0          7.2   7.8
One-off items                           4.4   4.5  -2.2   17.3  10.4   66.3
thereof amortisation of the TOM
TAILOR/BONITA purchase price
allocation                              2.2   1.9          6.6   4.2
thereof costs from the BONITA takeover    0  11.9            0  14.8
thereof costs from the integration of   2.1 -11.1          9.2 -11.1
thereof refinancing costs               0.1   0.4          0.9   0.4
EBITDA                                 19.2  16.4   17.1  36.5  24.7   47.8
EBITDA margin in %                      7.7   8.6          5.6   6.2

Recurring net result for the period     3.6   7.4  -51.4   0.2   5.5  -96.4
Recurring earnings per share (in EUR)* 0.15  0.24  -37.5  0.01  0.21  -95.2
One-off items including deferred taxes  3.5   3.7   -5.4  14.1   9.0   56.7
thereof purchase price allocation       1.5   1.3          4.6   2.9
Net result for the period                 0   3.7 -100.0 -13.9  -3.5 -297.1
Earnings per share (in EUR)*              0   0.17       -0.57 -0.19

Cash flow from operating activities     5.9 -25.9 >100.0  10.4 -34.7 >100.0
Cash outflow from investing activities  4.7   8.0  -41.3  19.0  18.5    2.7

* 2012: dilutive effect from cash and capital increase in kind in Q3

                               30.09.2013      31.12.2012      Change in %
Total assets                        768.7           771.2             -0.3
Equity                              200.8           218.9             -8.3
Equity ratio (in %)                  26.1            28.4
Cash and cash equivalents            33.4            53.4            -37.5
Net debt                            276.1           247.8             11.4
Gearing (in %)                      137.5           113.2

Point of sale           30.09.2013        31.12.2012        Absolute change
Retail stores                1,346             1,298                     48
Franchise stores               186               175                     11
Shop-in-shops                2,229             2,031                    198


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, 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 first nine months of 2013, the TOM TAILOR GROUP reported sales of
EUR 656.0 million, of which EUR 254.2 million was generated by BONITA. The
Group has approximately 1,300 own stores in the retail segment. About 1,000
of these are BONITA and BONITA men stores, and 340 are TOM TAILOR stores.
The TOM TAILOR brand is also sold via retail partners.

Further information is also available at www.tom-tailor-group.com and

Media and investor contact

Felix Zander
Head of Investor Relations & Corporate Communications
Phone: +49 (0) 40 58956-449
E-Mail: felix.zander@tom-tailor.com

Erika Kirsten
Corporate Communications
Phone: +49 (0) 40 58956-420
E-Mail: erika.kirsten@tom-tailor.com

End of Corporate News


07.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                                    
Company:     TOM TAILOR Holding AG                                      
             Garstedter Weg 14                                          
             22453 Hamburg                                              
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,      
End of News    DGAP News-Service  
238372 07.11.2013                                                      
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