Wolford, the luxury fashion brand renowned for its hosiery and lingerie, has released its full-year 2022 figures, indicating a rise in sales but an ongoing lack of profitability. However, despite the widening loss, the company remains hopeful and sees a clear path to sustained profitability.
In terms of sales, Wolford experienced a noteworthy 15% increase, reaching a total of €125.5 million. Unfortunately, the EBIT loss also grew substantially, amounting to €28.6 million compared to the previous year’s €5.2 million. Furthermore, the net loss widened to €34.9 million, surpassing the €12.33 million loss of the prior year. Nevertheless, Wolford attributes its positive sales growth to multiple factors, such as increased investments in marketing activities, collaborations with designers, and a focused product proposition.
A significant highlight for Wolford was its revenue growth across all direct-to-consumer (DTC) channels. The brand observed a 28% increase in retail sales and a 7% rise in online sales. On the other hand, wholesale sales declined by 1%, which the company attributed to a cyber attack on its third-party logistics warehouse. Despite facing obstacles like the ongoing war in the EMEA region and lockdowns in China, Wolford was successful in achieving sales growth.
The company acknowledges that the considerable earnings erosion in the first half of 2022 could not be completely mitigated when the new management board assumed control in August 2022. Furthermore, Wolford faced several one-off events and expenses, totaling €9.3 million, which had a negative impact on its EBIT for the entire year. However, the new management board has implemented various measures to enhance operational efficiency and control costs.
To enhance liquidity, Wolford conducted a capital increase of €17.6 million in February. These measures are anticipated to yield positive results in the current year, as evident in the first quarter where sales exceeded expectations. The company remains optimistic that these efforts will lead to sustained profitability, improved cash flow, and higher earnings.
Despite the losses and challenges faced, Wolford remains committed to its vision and continues to invest in its brand. With a strong emphasis on operational efficiency and cost control, the company is determined to navigate the competitive landscape of the luxury fashion industry and ultimately achieve long-term profitability.
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