Tom Tailor Group sales drop 2.2 percent in Q1

The Tom Tailor Group said, at 189.7 million euros (226 million dollars), group sales were down 2.2 percent compared to the same period of the previous year. The share of sales generated by the decreases due to 'Reset', the company added, amounts to 24.9 million euros (29.6 million dollars) for the first quarter. Reported EBITDA amounted to 4.1 million euros (4.8 million dollars) compared to 8.7 million euros (10.3 million dollars) last year.

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"The first few months of 2018 were challenging, but we were able to hold our own against the competition with the Tom Tailor brands and continue our course initiated with Reset," said Dr. Heiko Schaefer, CEO of the Tom Tailor Group, adding, "We are therefore confident that we will continue to gain momentum as we progress through the year and achieve our set annual targets."

Tom Tailor brand increases sales across retail channels

Across all channels, Tom Tailor brands were able to increase their sales by around 3 percent from 133.8 million euros (159.4 million dollars) to 137.9 million euros (137.9 million dollars).

Despite the consolidation in the first three months of the year, sales in the Tom Tailor wholesale segment also increased by 5.8 percent to 80.8 million euros (96.2 million dollars ). Above all, business in the men's assortment, the company added, proved to be an important growth area, as a result of which the reported EBITDA increased to 16.1 million euros (19.1 million dollars).

Sales in the Tom Tailor retail segment fell by 0.4 percent to 57.2 million euros (68.1 million dollars), while the reported EBITDA improved slightly to -4.4 million euros (-5.2 million dollars) against -4.6 million euros (-5.4 million dollars) in the previous year. The number of Tom Tailor stores decreased by 24 to 445 compared to the same quarter of the previous year, which had a positive effect on the gross profit margin, which rose by 4.7 percentage points to 57 percent.

Bonita contributes 51.8 mn euros to total Q1 sales

The Bonita brand contributed 51.8 million euros (61.7 million dollars) to group sales in the first quarter of 2018 excluding the decrease in sales from the RESET program in Q1 2017 of 60.3 million euros. Sales thus dropped by 14.1 percent compared to the same period of the previous year, due to the planned store closures. Compared to 31 March 2017, the number of stores declined by 115 to 799.

The reported gross profit margin increased by 1.4 percentage points to 64.5 percent in the first quarter from 63.1 percent in the same period of the previous year.

Tom Tailor confirms full-year forecast

In the financial year 2018, the company said, that the group 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 Southeastern Europe. Thus, a moderate increase in the EBITDA margin compared to the previous year is forecasted, with an upgrade of the digital infrastructure and analytics capabilities to support this development.

Picture: Tom Tailor website