- Prachi Singh |
Ahlers, in its first quarter report said that both - the industry figures and the company's own declining retail sales confirm the continuing difficult market environment for apparel in Europe. In addition, the company said, the first quarter was influenced by a shift of revenues from the first to the second quarter. Total group revenues decreased by 2.4 million euros (2.9 million dollars) or 3.8 percent to 60.7 million euros (75.1 million dollars) in the first quarter.
“The situation in the clothing retail sector remains challenging. On the upside are our denim-sales revenues. Here exist many innovations, such as the increased wearer comfort offered by new stretch qualities, our Pierre Cardin Stretch suits are equally popular in the market. The collections of Pionier Workwear have been modernised, which is paying off in the form of rising revenues. But in spite of such successes, business remains tough. We therefore continue to attach top priority to refining our strategy, leveraging market opportunities and cutting costs,” said Dr. Stella A. Ahlers, CEO of the Ahlers AG, commenting on the first quarter results.
Q1 revenues in Germany up 1.5 percent
Adjusted for the shift in deliveries, Ahler reported revenue growth of 0.5 million euros (0.6 million dollars) or 1.5 percent in Germany. Revenues generated outside Germany declined by 2.2 million euros (2.7 million dollars).
EBIT for the quarter fell by 1.3 million euros (1.6 million dollars) from 4.3 million euros (5.3 million dollars) to 3 million euros (3.7 million dollars), mainly due to the sales effect on gross profit. Consolidated earnings after taxes declined by 0.9 million euros (1.1 million dollars) or 31 percent from to 2 million euros (2.4 million dollars).
The company said that its Russian joint venture continues to proceed according to plan. Ahlers RUS took up operations on March 1, 2018. Ahlers added that it held 33 percent of the shares at the end of March 2018 and should shortly reach the desired 60 percent following the approval of the respective authorities. The company will be responsible for the wholesale operations of Pierre Cardin and Pioneer and operates Pierre Cardin stores in Russia.
“After the first three months, our revenue and earnings figures are below expectations, especially in our own retail segment. We assume, that we reach the revenue and earnings forecast published in the annual report,” added Ahlers.”
Thereby, the company’s management board confirms the forecast according to which consolidated revenues will pick up moderately and earnings will notably increase at a medium double-digit percentage rate in the current financial year.
Picture credit:Pierre Cardin website