Revenue up 5.5% in first nine months of the year
ADLER continues to significantly outpace the industry
Outlook for 2015 confirmed overall
Haibach bei Aschaffenburg, 12 November 2015: Adler Modemärkte AG – one of Germany’s largest textile retailers – continued successfully along its growth path in the first nine months of 2015, again bucking the gloomy industry trend. Consolidated revenue increased by 5.5% to €398.6 million, while revenue throughout the German textile retail industry fell by 2%. On a like-for-like basis, ADLER achieved slight growth of 0.1%. Third-quarter revenue grew even more significantly, by 6.8% to €130.2 million. Like-for-like growth amounted to 1.8% here.
“ADLER is a strong brand with a successful strategy and strict cost management. This is why we are growing even in the currently consolidating industry environment”, said Lothar Schäfer, CEO of Adler Modemärkte AG. “Thanks to our solid financial capabilities, we will continue to expand our competitive stance strategically through new store openings.”
Ramp-up costs for acquired stores reduce earnings as projected
In the first nine months of the year, ADLER added a total of twelve new stores to its sales and distribution network. Along with the eight stores acquired from Kressner at the beginning of the year, which are now trading under the name Adler Orange, these new stores included the two former hefa stores in Mömlingen and Lollar, as well as two newly opened stores. Integration costs for the new stores reduced earnings in the first nine months of the year, as did business with concessionary suppliers which remained significantly below expectations as well as increased marketing expenses.
Cost of materials increased due to the above-average increase in costs of goods sold by 9% to €188.6 million for the new stores, and gross profit increased by 3% to €210.1 million. The gross profit margin amounted to 52.7% (as compared to 54.2% in the same period of the previous year). The increase in personnel expenses of 8.5% to €77.0 million was attributable in particular to the acquisition of the Kressner and hefa stores. Severance packages and staff restructuring measures resulted in extraordinary expenses for ADLER Orange amounting to €1.1 million.
The increase in expenses led to the expected decrease in earnings before interest, taxes, depreciation and amortisation (EBITDA) to €4.6 million in the first nine months of the year (previous year: €18.3 million). Earnings before interest and taxes (EBIT) fell from €6.8 million in the previous year to €-7.5 million in the first nine months of 2015. Earnings before taxes (EBT) fell from €3.1 million to €-11.1 million in the first nine months of 2015. ADLER thus reports a consolidated net loss as at 30 September 2015 amounting to €9.3 million as compared to a consolidated net profit of €1.4 million in the same period of the previous year. The adjusted earnings per share amounted to €-0.50 (compared to €0.08 in the same period of the previous year).
Significant increase in revenue in Q3
In the third quarter of 2015, ADLER realised a significant 6.8% increase in consolidated revenue to €130.2 million. On a like-for-like basis, this represented a 1.8% increase. EBITDA fell primarily as a result of increased marketing expenses to €0.1 million. In terms of EBIT, a loss of €-4.0 million was realised
Forecast confirmed: further profitable growth expected
Based on the revenue trend in the first nine months of 2015, the Management Board affirms its outlook for the overall year, projecting revenue growth in the mid-single-digit percentage range. ADLER’s comments on EBITDA remain unchanged: due to prepayments and expenses for integrating the Kressner stores acquired, we expect EBITDA to stagnate at best at the already high level, and possibly to decline temporarily. The Company expects to report EBITDA for the current fourth quarter of 2015 that is significantly up year on year. In the medium term, the Executive Board expects the expansion measures currently being undertaken to strengthen ADLER and to lead to further profitable growth.
Adler Modemärkte AG’s full quarterly report is now available for inspection or download from the Company’s homepage at
About Adler Modemärkte
Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany’s largest and most important textile retailers. In 2015, the Group generated revenue of EUR 566.1 million with a workforce of around 4,200, generating EUR 33.3 million in EBITDA. ADLER currently operates 178 stores, 153 of which are located in Germany, 21 in Austria, two in Luxembourg, one in Switzerland, plus an online shop. The Company focuses on large-space concepts offering in excess of 1,400 m2 of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to more than 60 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 45 and over.
For more information: www.adlermode-unternehmen.com www.adlermode.com
Tel: +49 (0) 69 971 247 17