Germany’s Tom Tailor meets 2015 expectations
today Feb 23, 2016
According to preliminary results, Tom Tailor increased sales by 2.5% to 955.9 million euros in fiscal 2015, up from 932 million euros in 2014. The company, with its two umbrella brands Tom Tailor and Bonita, raised its annual sales forecast in September last year from 945 million euros to 955 million.
However, EBITDA was at the lower end of the company’s forecast of 75-80 million euros, amounting to 76.3 million euros, down from 87.2 million in the prior year. This was attributed to the negative impact of interim delivery problems during the launch of a new logistics center and other expenses of the accelerated retail expansion.
In 2015 the German company initiated a verticalization of its business and realigned its organizational structure.
"The textile industry is undergoing a rapid change, driven by digitalization and customers’ changing shopping habits. We initiated two programs in 2015 to improve our flexibility, speed up our processes and reduce costs," said Dieter Holzer, CEO of the retailer.
"During the current fiscal year, we will focus on the implementation of the relevant steps in order to improve our profitability and in order to face up to vertical competition," he commented.
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