Wolford, the high-end hosiery and intimates specialist, has reported impressive sales growth in the first half of the year. However, despite meeting its sales expectations, the company has also experienced a wider loss in earnings before interest and tax (EBIT). The loss can be attributed to high costs caused by inflation.
In terms of sales, Wolford achieved a 29.4% increase, reaching €54.3 million between January and June. When excluding the licensing business and considering like-for-like growth, the figure was even more impressive at +40%, positioning Wolford at the upper end of the scale compared to the larger luxury goods market. The sales growth was observed across almost all regions and distribution channels. Notably, the US market experienced a 40% rise, while the EMEA region saw a 30% jump, despite the ongoing Russia-Ukraine conflict. In Asia/Oceania, sales slightly surpassed the previous year’s level, despite the impact of the pandemic.
Both the retail and wholesale segments witnessed double-digit growth, and sales through multibrand retailers increased by nearly 60%. Additionally, the online business saw positive development.
However, Wolford faced challenges in terms of its EBIT. The company attributed the loss to ongoing structural reorganization and the difficult market conditions. Rising prices of fabrics, paper, energy, logistics, and staff costs all contributed to the financial setback. Wolford does not anticipate any improvement in EBIT for the full year.
To ensure financial stability, the company secured loans from its majority shareholder and is in close contact with banks to secure additional financing.
In recent months, Wolford has been focused on expanding its presence in the market. This includes developing a retail plan that involves opening six new stores and relocating existing ones in key cities. Notably, the company opened a new flagship store on Rue Saint Honoré in Paris and moved its flagship store in New York to a bigger and better location on Madison Avenue.
Furthermore, collaborations with Alberta Ferretti and GCDS have helped increase customer engagement and reach new customer groups. Wolford’s strong digital and social media strategy has also played a significant role in raising brand awareness.
Despite the challenges posed by difficult market conditions, Wolford remains optimistic and expects the positive sales trend to stabilize throughout the year. The company continues to prioritize its market and brand positioning to ensure long-term success in the luxury hosiery and intimates industry.
Links:
1. Wolford Official Website
2. Business of Fashion
