Wolford, the luxury hosiery and intimates specialist, has recently provided an update on its financial performance, shedding light on the impact of the pandemic on its business. Despite facing challenges prior to the coronavirus crisis, the company’s operating results for the current period have shown significant improvement compared to the previous year. Wolford remains optimistic about returning to profitability in 2021.

The pandemic has had a severe effect on Wolford’s financials, with a drop of €10.9 million in revenues for the financial year ending in April 2020. The following financial year, up until August 31, 2020, saw revenue losses reaching €15.5 million. However, the losses have started to decrease as the year progressed.

Interestingly, Wolford has managed to leverage the opportunities presented by the pandemic. The company’s Wolford Care Mask, which has been produced since March, has generated approximately €5.1 million in revenue thus far. Masks have become an integral part of the company’s product range. Additionally, Wolford has focused on its online distribution channel, which has been a key driver of growth. From May to August, online sales accounted for 25% of its revenues compared to 13.3% in the same period last year. Online sales have experienced a remarkable year-on-year growth rate of approximately 58%. However, these gains were not sufficient to fully compensate for the revenue losses in other business areas.

To mitigate the impact of the pandemic, Wolford implemented an extended restructuring program, including cost-saving measures such as reducing rental payments, procurement expenses, and staff costs. The company also utilized government aid available for COVID-19 support. As a result, by the end of August, EBIT (earnings before interest and taxes) had improved by nearly €3 million, representing a 22% increase year-to-date. This positive trend indicates that Wolford is on track to achieve profitability by the end of the financial year.

Despite the challenges faced due to the pandemic, Wolford’s resilience and adaptability have enabled it to navigate these difficult times. The company’s focus on online sales and the success of its Wolford Care Mask have been instrumental in offsetting some of the revenue losses. With the restructuring program gaining traction, Wolford is optimistic about its future prospects and expects to return to profitability in late 2021.

Links:
1. Wolford Official Website
2. Online Supermarkets in Europe – Statistics & Facts