DGAP-News: TOM TAILOR GROUP: TOM TAILOR on track- BONITA under modification

DGAP-News: TOM TAILOR GROUP: TOM TAILOR on track- BONITA under modification

DGAP-News: TOM TAILOR Holding AG / Key word(s): Preliminary Results
TOM TAILOR GROUP: TOM TAILOR on track- BONITA under modification

18.02.2014 / 18:09

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TOM TAILOR GROUP: TOM TAILOR on track- BONITA under modification

Preliminary figures for fiscal year 2013

  - Sales target clearly achieved with 44% growth to EUR 907.2 million

  - EBITDA of the TOM TAILOR brands up by about 28% 

  - Recurring EBITDA of TOM TAILOR GROUP below expectations at EUR 77.2
    million

  - Positive free cash flow at EUR 20.9 million 

Hamburg, 18 February 2014. TOM TAILOR GROUP further expanded its market
position in the fiscal year 2013. According to preliminary figures, the
Group boosted its sales by 44.1% to EUR 907.2 million (2012: EUR 629.7
million) and reached the upper end of its EUR 890 million to EUR 910
million target range. This increase was in particular driven by the
repeatedly strong growth of the TOM TAILOR brands as well as the first-time
full-year consolidation of the BONITA brand. TOM TAILOR GROUP increased its
recurring earnings before interest, tax, depreciation and amortisation
(EBITDA) by 16.1% to EUR 77.2 million (2012: EUR 66.5 million). Despite an
increase in the recurring EBITDA of the TOM TAILOR brands by 27.8%, the
Group's recurring EBITDA remained below the targeted range of EUR 85
million to EUR 95 million. The reason for this being inventory sales at the
end of the fourth quarter 2013, which negatively impacted BONITA's
profitability. In addition, the Christmas sales failed to meet
expectations.

In order to further strengthen the product, design and brand expertise of
BONITA and BONITA men, former Chief Product Officer of TOM TAILOR Holding
AG, Udo Greiser, was appointed sole Managing Director of BONITA GmbH
effective 1 February 2014. He will resign from the Management Board of TOM
TAILOR Holding AG. Udo Greiser has extensive knowledge about the market and
the company, and will fully concentrate on BONITA going forward, in order
to systematically develop the brand. As of 01 March 2014, Daniel Peterburs
will succeed him as Management Board member for product development,
procurement and licensing at TOM TAILOR Holding AG. Daniel Peterburs
studied textile and clothing management and has been with the Company since
2008, most recently as Division Head of the product line TOM TAILOR Denim
Male.

'We covered an incredible - and at times quite rocky - path in 2013, the
year of integration. Our TOM TAILOR brands have performed extremely well
and continued unintermittent on their profitable growth course. However, as
for BONITA, we had to implement more substantial measures in the last
quarter of the year so as to ensure that BONITA will be able to deliver the
expected level of profitability in the next one to two years,' said Dieter
Holzer, Chairman of the Management Board (CEO) of TOM TAILOR Holding AG.
'Our Product and Design Team was completed in November 2013 and will now
leverage on the existing potential of BONITA and BONITA men under the
leadership of Udo Greiser.'


TOM TAILOR brand outperforms the market once again

The TOM TAILOR brands increased their sales in the expired fiscal year by
17.0% to EUR 556.5 million (2012: EUR 475.8 million), while its EBITDA
margin rose by 80 basis points from 9.2% to 10.0%.

Sales in the TOM TAILOR retail segment went up by 23.5% to EUR 254.1
million (2012: EUR 205.8 million). Key growth drivers were the expansion of
the store network by 39 to 354 stores and the productivity increase in
retail space. On a like-for-like basis, the segment's sales in 2013 rose by
a pleasing 5.9%. Like-for-like growth in the fourth quarter came to 2.9%. 
Thus, in 2013 the TOM TAILOR retail segment once again outperformed the
German textile industry as a whole, which closed the year at -2% (Source:
TW Testclub 02/2014).

The TOM TAILOR wholesale segment increased its sales considerably by 12.1%
to EUR 302.4 million (2012: EUR 269.9 million). The EBITDA margin grew from
8.6% to 10.0%. The number of shop-in-shop sales areas rose in 2013 by 238
to 2,269 and the number of franchise stores by 22 to 197.


Positive development of BONITA delayed

The BONITA brand, which is sold through 1,010 own retail stores as well as
the in June launched e-shop, achieved sales of EUR 350.7 million in 2013
(August to December 2012: EUR 153.9 million - BONITA was consolidated for
the first time from August 2012). The foundations for profitable growth
have been laid with a range of implemented and completed measures. The
BONITA e-shop performed well following its launch in June 2013 and
delivered its first sales contribution with a low single-digit million
figure. On a like-for-like basis, sales at BONITA decreased for the full
year by 4.6% and in the fourth quarter of 2013 by 3.5%. Due to poor weather
conditions in the first half of the year and enforced sales promotions,
particularly in the fourth quarter, BONITA remained below expectations.


Gross profit margin rises to 55.0% - recurring EBITDA increases by 16.1% 

The Group's gross profit margin grew from 52.9% to 55.1% year-on-year. This
improvement is primarily attributable to the increase in retail share, the
further expansion of the Company's own purchasing company for the TOM
TAILOR brands and the initial effects of the relocation of BONITA's
procurement activities to Asia.

In the fiscal year 2013, earnings development was influenced by three
factors: a sector-wide weak first half as a result of poor weather
conditions,  integration costs and the unexpectedly weaker final quarter at
BONITA. The Group's recurring EBITDA increased by 16.1% to EUR 77.2 million
(2012: EUR 66.5 million), on the back of the positive performance of the
TOM TAILOR brand. The targeted range of EUR 85 million to EUR 95 million
was not reached, for the most part on account of the weaker earnings
development at BONITA. Positive contributions from the sale of collections
manufactured under the new product development process were offset by
enforced sales promotions. Consequently, BONITA delivered a recurring
EBITDA of EUR 21.4 million for the full year (August to December 2012: EUR
22.8 million). In contrast, the TOM TAILOR brands boosted their recurring
EBITDA by 27.8% to EUR 55.8 million (2012: EUR 43.7 million). The Group's
recurring EBITDA margin came to 8.5% (2012: 10.6%).

The reported Group EBITDA rose by 16.5% to EUR 64.1 million (2012: EUR 55.0
million). The reported EBITDA margin amounted to 7.1% (2012: 8.7%).
The financial result stood at EUR 18.3 million (2012: EUR 15.8 million) and
essentially reflected the full-year impact of higher interest expenses
incurred to finance the takeover of BONITA.

The Group's net result for the period, primarily adjusted for one-off items
from the integration and refinancing of BONITA, came to EUR 1.7 million
(2012: EUR 18.9 million). Recurring earnings per share decreased to EUR
-0.14 (2012: EUR 0.81). The reported net result for the period totalled at
EUR -16.2 million (2012: EUR 3.1 million), while reported earnings per
share came to EUR -0.87 (2012: EUR 0.01).


Positive free cash flow and lower net debt

Cash flow from operating activities rose to EUR 59.7 million (2012: EUR
20.4 million). The cash outflow from investing activities dropped to EUR
26.9 million from EUR 35.6 million in the previous year (without
consideration of the BONITA acquisition), which largely reflects the
takeover and integration of BONITA. The free cash flow, as a result of
operating cash flow minus capital expenditure and interest, increased by
EUR 47.9 million to EUR 20.9 million (2012: EUR -27.0 million), notably due
to the strong development of the operating cash flow.

Compared to the previous year, net debt fell by 11.8% to EUR 218.5 million
(2012: EUR 247.8 million). The equity ratio improved to 29.2% as of the
reporting date (31.12.2012: 28.4%). For the future, TOM TAILOR GROUP aims
to achieve an equity ratio of more than 30%.


Outlook: Long-term improvements at BONITA - profitable growth for the Group

For the fiscal year 2014, TOM TAILOR GROUP aims at sales of more than EUR
950 million and a recurring EBITDA margin of around 10%. Both brands ought
to contribute to this development.

'We have clear priorities for 2014: To press ahead with the qualitative
development of BONITA based on the measures implemented since the takeover
and to further increase profitability in the TOM TAILOR concept,' explained
Dieter Holzer.

Further information on the preliminary figures for the fiscal year 2013 is
available in an investor presentation at:
http://ir.tom-tailor-group.com/cgi-bin/show.ssp?id=8300&companyName=tomtai
lor&language=English. TOM TAILOR GROUP will publish its complete, audited
earnings figures for the fiscal year 2013 on 25 March 2014.



PRELIMINARY GROUP FIGURES                                            Change
In EUR million                                     2013      2012      in %

Sales                                             907.2     629.7      44.1
TOM TAILOR retail                                 254.1     205.8      23.5
BONITA                                            350.7     153.9       n/a
TOM TAILOR wholesale                              302.4     270.0      12.1

Gross profit                                      499.0     333.2      49.8
Gross profit margin in %                           55.0      52.9

Recurring EBITDA                                   77.2      66.5      16.1
Recurring EBITDA margin in %                        8.5      10.6
One-off items                                      13.1      11.5      13.9
EBITDA                                             64.1      55.0      16.5
EBITDA margin in %                                  7.1       8.7

Recurring EBIT                                     28.5      34.1     -16.4
Recurring EBIT margin in %                          3.1       5.4
One-off items (excluding deferred taxes)           22.0      17.9      22.9
thereof amortisation of the TOM TAILOR/BONITA
purchase price allocation                           9.0       6.4
thereof BONITA acquisition                            0      14.8
thereof BONITA negative goodwill                      0     -11.1
thereof BONITA integration                         10.7       4.4
EBIT                                                6.5      16.2     -59.9
EBIT margin in %                                    0.7       2.6

Recurring net result for the period                 1.7      18.9     -91.0
Recurring earnings per share (in EUR)*            -0.14      0.81    > -100
One-off items including deferred taxes             17.9      15.8      13.3
thereof purchase price allocation                   6.3       4.5
Net result for the period                         -16.2       3.1    > -100
Earnings per share (in EUR)*                      -0.87      0.01

Cash flow from operating activities                59.7      20.4     > 100
Cash outflow from investing activities             26.9      35.6      27.0

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


                               31.12.2013      31.12.2012      Change in %
Total assets                        759.6           771.2             -1.5
Equity                              221.7           218.9              1.3
Equity ratio (in %)                  29.2            28.4
Cash and cash equivalents            47.1            53.4            -11.8
Net debt                            218.5           247.8            -11.8
Net debt/recurring EBITDA             2.8             3.7

                                                                  Absolute
Points of sale            31.12.2013          31.12.2012            change
Retail stores                  1,364               1,297                67
Franchise stores                 197                 175                22
Shop-in-shops                  2,269               2,031               238



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.

In the 2013 fiscal year, the TOM TAILOR GROUP recorded sales of EUR 907.2
million, of which EUR 350.7 million was generated by BONITA. The Group has
1,364 own stores in the retail segment. 1,010 of these are BONITA and
BONITA men stores and 354 are TOM TAILOR stores. The TOM TAILOR brand is
also sold via wholesale partners. At the end of 2013, these comprised 197
franchise stores, 2,269 shop-in-shops and around 7,500 multi-label points
of sale.

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 and Corporate Communications
TOM TAILOR GROUP
Phone.: +49 (0) 40 58956-449
Email: felix.zander@tom-tailor.com

Erika Kirsten
Corporate Communications
TOM TAILOR GROUP
Phone.: +49 (0) 40 58956-420
Email: erika.kirsten@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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253167 18.02.2014                                                      
 
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