PARIS — Despite stemming losses in the second quarter and seeing some signs of recovery, Austrian innerwear and legwear firm Wolford AG said it expects trading conditions to remain difficult in the second half of fiscal 2010. It also forecast moderate growth in the following fiscal year.
This story first appeared in the December 21, 2009 issue of WWD. Subscribe Today.
In the six months ended Oct. 31, the group improved net profits by 5.4 percent on the same prior-year period to 755,000 euros, or $1.1 million, after cutting inventories by 13 percent and implementing other cost-reduction and efficiency-enhancing measures. However, Wolford’s sales continued to slide, falling 8.2 percent to 68.5 million euros, or $97.4 million. Dollar figures are converted at average exchange.
“Order volume for the spring-summer 2010 collection was rather restrained due to the ongoing uncertain economic situation,” the company said. “Demand slightly picked up in November and the first days of the Christmas trade. From today’s point of view, the executive board anticipates moderate growth once again in the 2010-2011 fiscal year.”