Austrian hosiery producer Wolford AG has appointed Ashish Sensarma as the company’s CEO, starting on 7 January 2015. In this function, Ashish Sensarma will be responsible for marketing and sales as well as the coordination of the corporate strategy.

The company has also reported a decline of 2.9% in revenue, despite positive developments in net earnings in the first half-year 2014, for the first time since 2011/12.

 “We are very pleased that Ashish Sensarma, a world-class fashion expert with strong retail credentials, will join the board in January,” commented Dr Antonella Mei-Pochtler, Chairwoman of the Supervisory Board. “His proficiency in driving profitable growth and passion for creating consumer satisfaction are exactly what we need,” he added.

Revenue decline

According to the manufacturer, the revenue decline resulted from the closing of unprofitable points of sale, and a sudden downturn in the fashion and retail branch in Europe and the USA since September.

The sound earnings improvement was supported by the steady implementation of optimisation measures and special effects. Management confirms the goal to complete the operating turnaround in this financial year with positive EBIT. “2014/15 is a year of transition, when we create the basis for future profitable growth,” commented Axel Dreher, Speaker of the Wolford Management Board.

Fashion and retail

The company has been confronted with increasingly difficult market conditions since September. Revenues in fashion and retail trade in the most important European and North American markets fell week for week, in part at double-digit rates – following a general decline in consumer confidence.

Positive development in August was followed by a sharp drop in revenues for the German fashion trade that reached 9% in September and 10% in October. Similar declines were recorded on the markets in France and Great Britain, and retail sales in the USA have been on a downturn since this past spring.

Revenues in the retail business rose slightly by 1% during the first six months. Wolford‘s online business remained on a sound course with growth of 24%. In contrast, the wholesale business declined by 8% because of a substantial decline in orders by partners in reaction to the weakness in consumer spending and lower customer frequency.

Goal for 2014/15

The operating turnaround remains the primary goal for the current financial year and is confirmed by the Management Board. “We are on a good course to generate positive EBIT in the current financial year. Our progress would have been much more evident also in terms of revenues without headwinds from the market,” said Thomas Melzer.

In order to stabilise revenues, the company introduced a number of sales promotion measures. “We also substantially strengthened our visual merchandising in the shops with the start of the Christmas shopping season. In January, we plan to introduce the next growth impulse with the presentation of our reshaped fall-winter 2015/16 collection,” added Axel Dreher.

www.wolford.com