Hamburg-based Tom Tailor Holding AG announced its Q1 results for 2012. The group increased its sales by 20% to €103.6 million (Q1 2011: €86.3 million) in the reporting period and benefited in particular from the strong performance in the retail segment. The wholesale segment also made a positive contribution to the growth of the company.

"We have had a dynamic start into the 2012 financial year and are continuing to vigorously pursue our strategic measures. A key milestone in the first quarter was the launch of our TV campaign: Since March, we have been advertising the Tom Tailor lifestyle world on television, creating even greater awareness of our brand among our target groups. This is because strengthening and developing our brand, as well as expanding our controlled selling space, is a decisive success factor for further growth. We are certain that this investment in our Company will pay off for many years to come. We are already seeing the first immediate effects of this in our e-commerce sales - in the first quarter of 2012, we boosted our sales year-on-year by 60%," said Dieter Holzer, CEO of Tom Tailor Holding AG.
Sales in the retail segment reached €40.2 million in the first quarter of 2012 (Q1 2011: €27.4 million). This rise of 46.7% reflects the continuous expansion of the store network as well as growth on a like-for-like basis. Tom Tailor increased its number of Retail stores to 258 (31.03.2011: 173). The group opened ten new stores in the first quarter. Sales in Tom Tailor's e-commerce jumped by 60% to €7.0 million compared to the prior-year quarter (Q1 2011: €4.4 million). On a like-for-like basis, sales in the segment went up by a significant 18.2%. Tom Tailor has therefore again outperformed the textile industry at large. The German textile sector finished the first quarter of 2012 only with a marginal 1% increase in sales (source: TW Testclub 14/2012). The retail segment accounted for 38.8% of overall sales in the first quarter, up from 31.7% in the same period last year.

In the wholesale segment, which comprises franchise stores and shop-in-shops, Tom Tailor grew its sales by 7.6% to €63.4 million (Q1 2011: €58.9 million). The growth was attributable to three factors in particular: positive demand from trading partners, the improved consumption climate in Eastern European sales markets and the expansion of controlled selling space. Tom Tailor increased the number of shop-in-shops by 81 to 1,867 and franchise stores by 2 to 157 in the first quarter.

The financial result amounted to € -1.6 million after € -0.1 million in Q1 2011. Fair value interest income of €1.4 million had a positive impact last year. Adjusted for this effect, the financial result in the reporting period was at the same level as last year.

Earnings after taxes, adjusted for the refinancing costs, came in at € -2.0 million (Q1 2011: € -0.7 million) and reflect the marketing expenses for the TV campaign as well as higher start-up costs for the further expansion of the retail business. Recurring earnings per share amounted to € -0.12 (Q1 2011: € -0.04). Reported earnings after taxes totalled €-5.2 million (Q1 2011: € -1.9 million).

In addition to this, the postponement of trade payables had an impact. Despite the continuing economic uncertainty, Tom Tailor is confident about the 2012 financial year. Following its successful performance in the first quarter, the Group has reiterated its targets. Tom Tailor is aiming to achieve sales in excess of €470 million and a recurring EBITDA between €51 and 53 million in 2012. The group will also continue to drive the expansion of its controlled selling space, both in Germany and abroad. Tom Tailor is planning to open 60 to 70 new retail stores, 200 to 250 shop-in-shops and 20 to 25 franchise stores in 2012.