Wolford reported 2011/12 fiscal year net income of 1.36 million euros, lower than 5.05 million euros last year. Earnings were impacted by the intensification of future-oriented measures around the world, such as the expansion of Wolford-owned points of sales and the corresponding initial costs as well as preparations for expanding distribution in China and the effects of a tax audit.
Sales grew 1.3% year-over-year to 154.06 million euros.
The company noted that the 2011/12 fiscal year was shaped by the European sovereign debt and bank crisis. Moreover, the unusually warm weather conditions prevailing in many areas of Europe in the period September to October 2011 had a negative impact on the consumer climate in the fashion industry in several core European markets. This environment also affected the sales and earnings development of the Wolford Group.
Going forward, on the basis of the measures which are being implemented, the Executive Board of the Wolford Group is optimistic to generate further growth in the 2012/13 fiscal year via higher market penetration in existing markets, entering new markets and the continuation of the efficiency-enhancement measures which have already been initiated.
Further, the Executive Board will propose to the Supervisory Board and the Annual General Meeting that the company distribute a dividend of 0.40 euros for the past 2011/12 fiscal year for each share entitled to a dividend.