Wolford saw sales drop by 6% in France

By

Bruno Joly

Published
Dec 15, 2014

Wolford returned to profit in the first half of its fiscal year, but this was mainly due to cost cutting measures and the streamlining of its retail network. In terms of its turnover, however, things were complicated. From May to October, Wolford saw its sales decline by nearly 3% to 72.6 million euros.

In France, its fourth largest market, which makes up 10% of its business, the decline was 6%. In Germany and the United States, its two largest markets, its business respectively declined 5% and 7%. 

Wolford’s management, meanwhile, explains the poor performance by referring to a subpar economic climate and poor weather. It stated that the German fashion trade, for example, fell 9% in September and 10% in October, with a similar trend in France. In Ukraine and Eastern Europe, the geopolitical crisis led to a 19% drop in business for the Austrian high-end pantyhose retailer.

Worldwide, Wolford saw its wholesale business drop 8% and retail grow 1%. In terms of its retail business, the company is quite satisfied to the extent that the closure of certain stores actually entailed a 2.4 million euro reduction in revenues.

Despite lower sales, Wolford is now achieving its goal of returning to profit for its full fiscal year. From May to October, it recorded a profit before interest and tax of 3.17 million as compared to 2.3 million for the same period last year.

For the entirety of its fiscal year, its priority will thus be to return to profit and a more stable turnover.

1 euro = 1.24 US$ = £0.79