Wolford, the renowned upscale hosiery and bodywear company, has recently reassessed its future outlook in light of the ongoing coronavirus outbreak. The management board of Wolford AG has conducted a comprehensive analysis of the virus’s impact and anticipates a significant negative effect on both sales and earnings. Italy, which has been particularly hard-hit by the outbreak, has witnessed the closure of nearly all shops throughout the country. Consequently, sales in Italy have plummeted by approximately 50% in the past two weeks alone. Additionally, the brand’s key markets in Germany, Austria, and Switzerland have also experienced a substantial decline of around 30% during the same period.

Considering these adverse circumstances, Wolford acknowledges that the repercussions will spill over into the new fiscal year of 2020/21, set to commence on May 1. Consequently, the company has revised its outlook and no longer anticipates a positive operating result (EBIT) for the 2020/21 financial year. This news is undoubtedly disappointing for Wolford, as the company had been diligently striving to regain profitability and had initially envisioned positive operating earnings in the upcoming financial year.

Given the current uncertainties surrounding the outbreak, the management board has opted not to provide further guidance at this time. Instead, they will monitor the progression of the epidemic before presenting a new medium-term outlook. This cautious approach is understandable, as the situation remains dynamic and unpredictable.

It is undeniable that the coronavirus outbreak has delivered a severe blow to Wolford’s prospects for the next fiscal year. The closure of shops and the decline in consumer demand have greatly impacted the company’s overall sales and earnings. As a result, Wolford’s aspirations for profitability have been temporarily thwarted, requiring them to reassess their expectations moving forward.

In these challenging times, numerous businesses have been adversely affected by the outbreak, and Wolford is no exception. The company’s financial outlook will heavily depend on the containment and resolution of the pandemic. Until then, Wolford will continue to face uncertainties and adapt its strategies accordingly to mitigate the effects of the crisis.

Useful links:
1. World Health Organization (WHO)
2. Centers for Disease Control and Prevention (CDC)