Adler Modemärkte Q1 sales decline 5.5 percent

Adler Modemärkte AG started the 2018 financial year with a decline in sales and earnings. The company said, against the background of a continued weak industry environment, sales amounted to 102.7 million euros (122.5 million dollars), 5.5 percent below the previous year's level. On a like-for-like basis, the decline was 6.2 percent. Gross profit fell by 5 percent to 50.1 million euros (59.7 million dollars), while the gross margin increased slightly to 48.8 percent against 48.5 percent last year.

Despite the continuing high cost discipline, the company said, it was not able to completely absorb the decline in revenue. As a result, EBITDA fell from negative 12.5 million euros (14.9 million dollars) in the first quarter of 2017 to negative 17.8 million euros (21.2 million dollars) in the first three months of 2018.

In the first three months of 2018, Adler reported a consolidated net loss of 17.3 million euros (20.6 million dollars) against 13.2 million euros (15.7 million dollars in the first quarter of 2017, resulting in earnings per share of 0.93 euro (1.11 dollars) compared to 0.71 euro (0.85 dollars) in the first quarter of 2017.

Adler confirms 2018 forecast despite caution start to the year

Adler management has confirmed its forecast for the operating business in the 2017 annual report and continues to see the difficult industry environment in the textile retail sector for 2018 and therefore continues to expect sales to be at about the same level as in the previous year at 525.8 million euros (627.2 million dollars). For EBITDA, a rise of 26 - 29 million euros (31 to 34.5 million dollars) compared to adjusted EBITDA of 25.4 million euros last year, is expected.

For the financial year 2020, the company said that Adler remains committed to increasing its sales by at least 5 percent compared to 2017 and EBITDA to grow significantly above average by at least 50 percent.

Picture:Facebook/Adler Modemärkte