Wolford, the luxury fashion brand, has released its first half results for the fiscal year 2020 and despite the challenges posed by the Covid-19 pandemic, the company’s sales managed to stabilize and its losses narrowed. Wolford is now optimistic about breaking even in 2021.

The fiscal year 2020 for Wolford, which covers the period from May to December, was marked by store closures across many markets. Although stores in Europe, Middle East, and Africa (EMEA), the US, and China reopened at different times, customer frequency and buying behavior did not return to normal during the reporting period. However, Wolford was able to generate sales of €48.17 million from May to October, representing a decline of about 20% compared to the previous year. Despite the decrease, the decline was smaller than anticipated.

Although Wolford is still operating at a loss, its losses for the period (before taxes) were lower than the previous year. Furthermore, the company received a boost of €72 million from the sale of real estate, which it used to pay off its debt. When factoring in the property transaction, Wolford’s pre-tax earnings show a profit of €30 million.

Throughout the six-month period, Wolford’s SS20 and AW21 collections were well-received across all channels despite the challenging circumstances. Notably, the company experienced significant growth in its online operations, which increased by 54%. E-commerce became the main driver of growth during the reporting period, with online revenue accounting for approximately 25% of the company’s total revenue through its own webstores and wholesale partners’ webstores. Business with e-tailers and marketplaces also saw double-digit growth, which is expected to continue in the upcoming year.

Looking ahead, Wolford anticipates further sales growth through its partnership with a new distributor in Japan, as well as its planned expansion of omnichannel architecture. The company has implemented its restructuring program, PITBOLI, which successfully reduced costs by 12% (€7 million) year-on-year.

In terms of product development, Wolford focused on selling its Wolford Care Masks, with over 630,000 masks sold generating €9 million in revenue. The masks have become a popular accessory within the Wolford product range. Additionally, the launch of The W and W lab lines, along with the collaboration with Adidas, surpassed expectations. Wolford has also started the relaunch of its Essential Collection, with targeted campaigns scheduled in the next few months. By introducing the Aurora Monogram line, the company is furthering its commitment to sustainability and aims to become the first environmentally neutral brand in the fashion industry.

While the half-year results are positive, Wolford acknowledges the impact of the second wave of Covid-19 lockdown measures, which have significantly affected retail during the typically strong quarter. The company anticipates these effects to continue into the next year but remains optimistic about reaching break-even in 2021, as long as its expectations regarding the development of the Covid-19 pandemic remain valid.

For more information, please visit:
1. Wolford Official Website
2. Wolford’s Half-Year Sales Stabilize, Losses Narrow – Wall Street Journal