- Prachi Singh |
The Tom Tailor Group has said that in the first half of 2018, the company was able to increase sales of its Tom Tailor brands by 1.2 percent to 277.8 million euros (322.9 million dollars), while the Group's total sales fell by 1 percent to 399.3 million euros (464 million dollars), due to technical difficulties in starting up the new e-shops at the beginning of the year and the weak first quarter for Bonita. The Hamburg-based fashion company reported increase in gross profit margin to 60.8 percent from 56.5 percent at the same time last year.
Hover over the graph to learn more.
"The first six months of 2018 were challenging overall. After an unsatisfactory first quarter for us, the results of the second quarter give us confidence - even though we have not yet arrived where we want to go. As a result, we continue to expect that we will reach the targets set for 2018 and that we are very well positioned for the years to come," said Dr. Heiko Schäfer, CEO of the Tom Tailor Group in a statement.
Review of Tom Tailor’s Q2 results
The company added that reported absolute gross profit fell to 242.9 million euros (282.3 million dollars) in the same period due to “Reset” closure effects. Ecommerce revenue growth was 24 percentage points compared to the first quarter and also, the company said, Bonita was able to increase its revenue by 1.4 percent to 69.6 million euros (80.9 million dollars) in the second quarter of 2018, after a weak first quarter, with a simultaneous increase in the reported gross profit margin to 72.4 percent compared to 70.9 percent in the last year’s second quarter.
In the wholesale segment, sales of 70.3 million euros (81.7 million dollars) in the second quarter were 1.5 percent below the prior-year level, while the reported gross profit margin increased to 54.7 percent and the reported EBITDA grew by 9.8 percent to 6.7 million euros (7.7 million dollars).
In the retail segment, sales rose 0.3 percent to 69.6 million euros (80.9 million dollars), while the reported gross profit margin increased to 65.2 percent, even though the reported absolute gross profit fell to 45.4 million euros (52.7 million dollars) in 2018. Reported EBITDA decreased to 5.7 million euros (6.6 million dollars) due to the lower absolute gross profit.
Tom Tailor expects profitable growth in core markets
In the financial year 2018, the company said that it is aiming to compensate in part for the slight decline in sales due to the “Reset” measures through profitable growth in the core markets and individual growth markets such as Russia and South-eastern Europe. Thus, a moderate increase in the EBITDA margin compared to the previous year is forecast, with an upgrade of the digital infrastructure and analytics capabilities to support this development.
Picture:Tom Tailor media gallery