EANS-News: Wolford Aktiengesellschaft / Detailed figures announced for the short fiscal year 2020 (May - December) CNE

Wednesday, 12. May 2021 19:15
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Annual Financial Report

Bregenz - 12. May 2021: Following the reopening of stores in Europe, the USA,
and China after the first wave of Covid-19 in the second quarter of 2020, the
renewed lockdown in Europe since October 2020 has led to significant business
losses, which will extend in all probability into the second half of 2021.
Nevertheless, Wolford generated sales of EUR68.0 million and therefore limited
the decline in sales to EUR22.8 million (approx. 25%) compared to the same
period of the previous year (May to December 2019).

Strong short fiscal year despite Covid-19: Company able to pay off debt under
its own management, earnings significantly higher than previous year

Despite the sales losses due to Covid-19, Wolford achieved a result (Group
Profit/Loss) of EUR+12.8 million and therefore significantly exceeded previous
year's result of EUR-14.5 million. This figure includes the effects of the sale
of real estate and the change in the value of right-of-use assets following the
implementation of impairment tests. As reported, the purchase price of EUR72
million for the property at Wolfordstrasse 1-3 in Bregenz was used at the
beginning of May to pay off all debt.

Wolford made good use of the short fiscal year and implemented further
restructuring measures. In particular, the company systematically continued to
implement its stringent plan for the sustainable realignment of Wolford.

Personnel costs reduced by more than 20%, online sales increased by 45%, sales
of Wolford Care Masks exceeded EUR10 million.

Due to the implementation of the restructuring program "PITBOLI" (Program for
Immediate Top and Bottom Line Impact), the planned measures were launched at the
beginning of 2020 and Wolford achieved its sales and efficiency effects
accordingly. The restructuring program "PITBOLI" thereby delivered a reduction
of a further 20% year-on-year on the personnel cost side. The implementation of
extensive additional measures in cash management ensured sufficient liquidity
throughout the short fiscal year. The cash flow in the short financial year
increased by EUR 9.7 million.

In the reporting period, online sales have been the main growth drivers, with a
45 % increase year-on-year. The revenue share of the company's own online
business and the associated online business of its wholesale partners increased
to a total of around 21 %. Wolford's retail and wholesale business also
contributed to achieving sales. Both the Spring Summer 2020 and the Fall-Winter
2020/21 collection were very well received in all channels. To date, a revenue
of EUR10 million has been generated through the sale of approximately 700,000
Wolford Care Masks since the beginning of production in March 2020. As a new
accessory, the different styles of the Wolford Care Mask have become a must-have
of the Wolford product range.

Brand architecture extended, sales presence internationally strengthened

The "The W" and "W lab" collections were also successfully incorporated into the
brand architecture and are part of the new face of the Wolford brand. The
collaboration with adidas has significantly exceeded expectations, as well as
the launch of "The W" on the online platform Farfetch. Furthermore, a relaunch
of the Essential Collection has started, which will be implemented in the
upcoming months with targeted campaigns. With the Aurora Monogram products, part
of "The W" collection, Wolford continues to increase its commitment to
sustainability. All new Aurora Styles are Cradle to Cradle Gold Certified TM.
Wolford's goal is to be the first eco-neutral brand in the fashion industry.

Wolford's strategy to expand its presence in Poland, Scandinavia, United Arabic
Emirates, Central America, and Japan is also successfully implemented. Wolford
has reached partnership agreements with well-established agencies and
distributors to leverage their markets' knowledge and presence in their
respective territories and several multi-brand doors have been opened during


Wolford remains to see it as its goal within the fiscal year 2021 to reach
breakeven As of March 31, 2021, Wolford has closed the first quarter of the
current fiscal year with earnings (Group profit/loss) 22.4% higher than the
previous year, thanks to the strict consolidation course, despite the ongoing
store closures in Europe as a result of Covid-19 related lockdowns. Encouraging
factors here were not only the continued success on the cost side, which is well
ahead of plan, but above all a gross profit margin of 82.1%, 1.7 percentage
points higher than in the same period of the previous year. Due to numerous
additional sales measures such as remote selling and streaming, March sales was
almost EUR2 million (38%) higher than March sales in 2020.

With the new long-term strategy, "Northstar - Masterplan for Wolford" Wolford
wants to ensure the continued success and sustainable realignment of the
company. This involves an overall strategy regarding the topics "Brand",
"Product Range", "Location" and "Channels" and the development of the "PITBOLI"
measures towards 12 strategic projects.

The reported results of the short fiscal year show that the management is
focussing on the consistent realignment of Wolford. The decisive factors now are
a continued stable sales performance despite the Covid-19 pandemic, as well as a
consistent continuation of "PITBOLI" and the implementation of the Northstar-

Further inquiry note:
Wolford AG 
Wolfordstraße 1 
6900 Bregenz

Telefon: +43 (0) 5574 6900 
Email: investor@wolford.com 

end of announcement                         euro adhoc

issuer:       Wolford Aktiengesellschaft
              Wolfordstrasse 1
              A-6900 Bregenz
phone:        +43(0) 5574 690-1258
FAX:          +43(0) 5574 690-1410
mail:         investor@wolford.com
WWW:          http://company.wolford.com
ISIN:         AT0000834007
indexes:      ATX GP
stockmarkets: Wien, Frankfurt, New York
language:     English

EAX0022    2021-05-12/19:15

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