Wolford swings to profit despite drop in revenue

Austrian skinwear and hosiery specialist Wolford has swung to a profit in the shortened fiscal year from May to December despite seeing a 25 percent drop in sales.

The company swung to a profit of 12.8 million euros, compared to a loss of 14.5 million euros a year earlier, aided by the sale of real estate and the change in the value of right-of-use assets following the implementation of impairment tests.

That’s despite sales at Wolford falling by 22.8 million euros to 68 million euros in the period, with lockdowns causing “significant business losses”, which the company said will likely extend into the second half of 2021.

Wolford sold its property in Bregenz during the period for 72 million euros to pay off all its debt.

The company also implemented further restructuring measures, such as reducing its personnel costs by more than 20 percent.

Wolford aims to break even in 2021

Like many other brands during the pandemic, online sales at Walford did particularly well during the period, up 45 percent. It meant the revenue share of its own online business and the associated online business of its wholesale partners increased to a total of around 21 percent.

The company’s Wolford Care Masks, which it launched in response to the pandemic last year, exceeded sales of 10 million euros.

Looking ahead, Wolford aims to reach breakeven within the fiscal year 2021, having closed the first quarter with earnings 22.4 percent higher than the previous year.

The company said an encouraging sign is that its gross profit margin is 82.1 percent, 1.7 percentage points higher than in the same prior-year period. March sales were also 38 percent higher than March sales in 2020.