Pandemic takes a toll on Wolford, but the debt-free firm is making strides towards recovery. Despite facing significant business losses due to the ongoing pandemic, particularly during the renewed lockdown in Europe, Wolford has managed to release its delayed results for its shortened fiscal year. These results highlight both the challenges the company has faced and the successes it has achieved.

During the period, Wolford generated sales of €68 million, representing a 25% decrease compared to the same period in 2019. However, there is some positive news amidst the sales losses. The company achieved a group profit of €12.8 million, surpassing the €14.5 million loss from the previous year. This profit was supported by the sale of real estate and the change in the value of right-of-use assets following the implementation of impairment tests. Notably, the proceeds from the sale of its Bregenz property, amounting to €72 million, were used to pay off all of its debt. This debt-free status is a significant accomplishment for Wolford.

Wolford also implemented further restructuring measures during the shortened fiscal year, which resulted in personnel costs being reduced by over 20%. Additionally, the company experienced a significant boost in online sales, with e-sales rising by 45%. Its own online business and that of its wholesale partners’ e-stores accounted for approximately 21% of its total revenue. Furthermore, the sales of Wolford Care Masks exceeded €10 million, with 0.7 million masks sold. These masks have proven to be a popular addition to the company’s product range.

To add to its achievements, Wolford successfully incorporated its The W and W Lab collections into its brand architecture. Its collaboration with Adidas also exceeded expectations, contributing to its overall success. The company has recently launched the Essential Collection and has planned targeted campaigns in the coming months to expand its reach. In terms of geographic focus, Wolford is targeting Poland, Scandinavia, the United Arab Emirates, Central America, and Japan. It has established partnership agreements with established agencies and distributors in these territories to leverage their market knowledge and presence.

Looking ahead, Wolford aims to reach break-even in fiscal year 2021 and has already seen a 22.4% increase in earnings compared to the previous year. Its gross profit margin has also improved by 1.7 percentage points. The company has taken strategic measures and capitalized on emerging opportunities, such as remote selling and streaming, to drive its recovery. These initiatives have proven successful, with March sales being nearly €2 million (38%) higher than the previous year.

In conclusion, despite the challenges posed by the pandemic, Wolford has made significant progress towards recovery. With a debt-free status, successful restructuring measures, and a focus on online sales and emerging markets, the company is on track to achieve its goals and thrive in the post-pandemic world.

Links:
– [Wolford Official Website](https://www.wolfordshop.com/)
– [Wolford Investor Relations](https://company.wolford.com/investor-relations/)