Wolford, the high-end hosiery and bodywear company based in Austria, recently released its annual financial results for the year ending in April. Despite facing challenges, the company has shown signs of improvement in various areas. The company, which is publicly listed on the Vienna Stock Exchange, experienced an 8% decrease in revenues, totaling €137.22 million. This decrease can be attributed to the ongoing challenges faced by brick-and-mortar retailers in today’s market environment.
Despite the reduction in revenue, Wolford managed to narrow its operating losses slightly. The operating loss (EBIT) decreased from €9.22 million to €8.98 million, while the net loss also saw improvement, decreasing to €11.1 million from €11.53 million. Wolford credits this progress to its ongoing restructuring program, which helped offset the decline in revenues.
A significant factor contributing to Wolford’s turnaround is its renewed focus on creativity. The company introduced a new window display concept and visual imagery scheme designed to appeal to a younger demographic. Additionally, Wolford launched a new store concept and is preparing to release an athleisure collection this autumn, which has received positive feedback. Furthermore, the company enhanced its sales organization to drive sales efforts and expand its presence in key markets like China.
Wolford recently partnered with FFBM to accelerate its growth in the Chinese market. With the increasing demand for luxury products among Chinese consumers, Wolford aims to capture a substantial portion of this market. The company anticipates that its revenues from China will eventually compete with those from its core markets in the US and Germany.
While Wolford is optimistic about its future growth and profitability, it expects to achieve positive operating earnings in the 2020/21 financial year. Despite the challenges ahead, the company is committed to stabilizing its revenues and charting a path toward sustainable growth.
For more information on Wolford’s annual results and strategic initiatives, visit their official website here. Additionally, to learn more about the company’s expansion into the Chinese market, click on this link here.
