Wolford, a high-end retailer specializing in hosiery and intimate wear, recently announced a decrease in sales and profits in its most recent half-year results. The company attributed this decline to a structural transformation it is undergoing, along with a decrease in customer frequencies in Western European fashion markets.
In specific figures, Wolford saw a 3% decrease in overall revenues, totaling €60.49m, while its operating loss widened by 58% to €9.38m and its net loss dropped by 62% to €11.86m. The company labeled this period as “unsatisfactory” and shared that its new executive team, Silvia Azzali and Andrew Thorndike, are actively working on identifying issues and formulating a comprehensive plan to reposition the brand, with strategies focusing on short-, medium-, and long-term goals.
The primary objective is to establish a sustainable repositioning of Wolford, emphasizing profitability, strong product offerings, and a customer-centric approach. The company is evaluating the performance of individual retail locations and looking to expand in regions with growth potential, predominantly through partnerships with wholesalers.
An important part of Wolford’s strategy involves expanding its presence in markets such as Japan and China, as well as collaborating with Fosun Fashion Brand Management. Additionally, the company has enhanced its online business by partnering with Farfetch, resulting in a significant revenue increase of approximately 30% in just three weeks.
Breaking down the half-year results further, currency effects exacerbated the revenue decline. While the retail and online segments observed decreases in revenue, there was a slight improvement in wholesale performance. Geographically, key markets like France, the US, Germany, Austria, and Asia reported revenue declines, while markets in Belgium, Italy, Spain, the UK, Scandinavia, and Eastern Europe showed growth. Among product categories, beachwear and accessories reported declines, whereas legwear experienced a minor increase in revenue.
Despite the challenges faced, Wolford remains committed to executing its recovery plan and revitalizing the brand for future success and profitability. Through a thorough analysis of issues and the development of a strategic master-plan, the company is poised to overcome obstacles and position itself strongly in the competitive fashion landscape.
To learn more about Wolford and its recent developments, visit their official website here and explore their partnership with Farfetch here.
