EANS-News: Wolford Aktiengesellschaft / Wolford continues its positive revenue development

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quarterly report/9-month report

Vienna/Bregenz, March 18, 2016.Wolford AG, which is listed on the
Vienna Stock Exchange, generated revenue growth in all its product
groups in the first three quarters of the current financial year (May
1, 2015 to January 31, 2016)and slightly increased EBIT adjusted for
all one-off effects. Higher revenue is also expected in the entire
2015/16 financial year.

Against the backdrop of a challenging economic and political
environment additionally burdened by the warm winter temperatures,
the Wolford Group reported a revenue increase of 6.3% in the first
nine months of the 2015/16 financial year to EUR 128.7 million, not
least thanks to positive currency effects. The revenue increase
equaled 1.1% when adjusted to take account of these effects. Cost
increases arising especially from the increase in value of the US
dollar and the British pound as well as one-off effects reported in
2014/ 15 negatively impacted the development of Wolford's operating
results. EBIT in the first nine months of the current financial year
amounted to EUR 2.16 million, compared to the prior-year level of EUR
7.08 million. Adjusted to include all one-off effects, EBIT in the
first three quarters of 2015/16 was up by EUR 1.02 million from the
previous year. In the same period, earnings after tax amounted to EUR
0.70 million, compared to EUR 4.46 million in the prior-year period.
Earnings per share equaled EUR 0.14, down from EUR 0.91in the first
nine months of 2014/15. Wolford employed an average of 1,574 people
(FTE) in the first three quarters of the current financial year,
compared to 1,567 employees in the previous year.

Solid contributions to revenue growth from the retail and online
businesses

In terms of distribution channels, Wolford's own retail business made
a substantial contribution to revenue growth, expanding by 5% (4% on
a like-for- like basis) in the first three quarters of 2015/16. The
online business was also successful once again, as shown by its 66%
growth. At the same time, on a cumulative basis the wholesale
business remained at about the same level as in the previous year.
This was in contrast to a third-quarter decline mainly attributable
to a shift in delivery dates into the first half of the current
financial year.

Revenue increase in all product groups

The trend towards figure-shaping lingerie with a functional character
continued unabated. Accordingly, the Lingerie segment showed
significant revenue growth. At the same time, the other segments of
the Wolford Group i.e. Legwear, Ready- to-wear, Accessories and
Trading Goods also generated revenue increases in the same period.

Uneven regional market development

From a regional perspective, Wolford generated double-digit growth in
Italy and Spain, and also clearly increased revenues in Scandinavia,
Netherlands and Belgium. Positive currency effects supported the
positive revenue development in the USA, Great Britain and
Switzerland. Wolford faced a weakening of sales momentum in its
relevant Asian markets, but still continued to report double- digit
revenue growth in Asia during the first three quarters of the year in
contrast to the general trend. Wolford still succeeded in maintaining
revenues in France at the prior-year level in spite of the revenue
decrease related to the dramatic events which took place in Paris in
the middle of November. In contrast, the core markets of Austria and
Germany showed a slight drop in revenues. The tense economic
situation in Russia negatively affected revenue development in
Central and Eastern Europe.

Healthy balance sheet structure

The asset and capital structure of the Wolford Group remained very
sound at the balance sheet date of January 31, 2016. The balance
sheet total fell to EUR 145.91 million compared to EUR 150.51 million
at the end of the prior-year period. This was the result of lower
receivables and the drop in cash and cash equivalents. Equity of the
Wolford Group as of January 31, 2016 amounted to EUR 75.21 million, a
drop of EUR 4.01 million from the comparable figure in the previous
year. Accordingly, net debt rose from EUR 15.76 million to EUR 17.37
million. The equity ratio was 52% (January 31, 2015: 53%) and gearing
equaled 23% (January 31, 2015: 20%).

Unabated innovative strength

Wolford repeatedly demonstrated its innovative strength, as shown by
product innovations such as PURE tights, the Cotton Contour line or
the large selection of Shape & Control styles. The latest innovation
from Wolford - Comfort Cut 40 tights: a pair of tights, which adjusts
to fit every figure, will be presented as part of the autumn/winter
collection 2016/17. At present, the R&D team is collaborating with
the industry network smart-textiles on a project to develop a
completely recyclable lingerie product line which can be returned to
the so- called cradle to cradle production process.

Outlook

It is difficult at the present time to make predictions about the
further development of Wolford's core markets. This especially
applies to the company's retail activities in France. As long no
recovery takes place in these markets, it will be a challenge for
Wolford to achieve its declared objective of generating positive
operating results. Nevertheless, despite these circumstances
Wolford's management also expects higher revenues in the 2015/16
financial year as a whole compared to the previous year.

The report for the first three quarters of the 2015/16 financial year
can be downloaded under company.wolford.com, Investor Relations.

http://company.wolford.com/wp-content/uploads/2016/03/Wolford_Q3-Repo
rt_2015_16_EN.pdf

Earnings 05/15 - 01/
Data 16 05/14 - 01/15 Chg. in % 2014/15
Revenues in EUR mill. 128.71 121.13 +6 157.35
EBIT in EUR mill. 2.16 7.08 -70 2.17
Earnings
before tax in EUR mill. 1.39 6.39 -78 1.21
Earnings
after tax in EUR mill. 0.70 4.46 -84 1.03
Capital
expenditure in EUR mill. 5.24 8.24 -36 10.97
Free cash
flow in EUR mill. 1.10 0.79 +39 -0.54
Employees
(on average) FTE 1,574 1,567 +1 1,574

Balance
Sheet Data 31.01.2016 31.01.2015 Chg. in % 30.04.2015
Equity in EUR mill. 75.21 79.22 -5 74.83
Net debt in EUR mill. 17.37 15.76 +10 17.12
Working
capital in EUR mill. 38.97 39.14 -1 38.14
Balance
sheet total in EUR mill. 145.91 150.51 -3 147.44
Equity ratio in % 52 53 -2 51
Gearing in % 23 20 +15 23

Stock Exchange 05/15 - 01/ 05/14 - 01/
Data 16 15 Chg. in % 2014/15
Earnings per
share in EUR 0.14 0.91 -85 0.21
Share price
high in EUR 25.48 24.05 +6 24.12
Share price
low in EUR 21.35 18.75 +14 18.75
Share price at

end of period in EUR 25.05 21.29 +18
24.00 Shares outstanding (weighted) in 1,000 4,912
4,900 +1 4,900 Market capitalization (ultimo)
in EUR mill. 125.23 106.45 +18 120.00

Further inquiry note:
Wolford AG
Maresa Hoffmann
Referentin Investor Relations & Corporate Communications
Tel.: +43 5574 690 1258
investor@wolford.com | company.wolford.com

end of announcement euro adhoc
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company: Wolford Aktiengesellschaft
Wolfordstrasse 1
A-6900 Bregenz
phone: +43 (0) 5574 690-1268
FAX: +43 (0) 5574 690-1219
mail: investor@wolford.com
WWW: company.wolford.com
sector: Textiles & Clothing
ISIN: AT0000834007
indexes: ATX Prime, ATX Global Players
stockmarkets: free trade: Frankfurt, regulated dealing: Wien, ADR: New York
language: English