“Troubled” market – Wolford: 2021 operating loss of €5.26 million

Before depreciation, the operating result (EBITDA) was positive at EUR 8.54 million. The operating result before depreciation and financing charges (EBITDA) was reversed from a minus of eight million euros to a plus, adjusted for property sales.

Operating expenses, ie personnel costs and other operating expenses, were further sharply reduced in 2021 to approximately 17.6 million euros (twelve percent). Savings were made on personnel, rent, purchasing, production and logistics, which were outsourced in the fourth quarter. There were also efficiencies in administrative areas such as human resources, customer service and finance. A 14 percent increase in gross margin of 80.7 percent was described as decisive for the profit jump.

International market environment “restless”
Turnover in fiscal year 2021 (January to December) amounted to 108.9 million euros, about 14 percent more than in the previous year. Growth in China (plus 79 percent) and the US (plus 38 percent) was responsible for this, while growth in the Europe-Arabia-Africa (EMEA) economic area was seven percent. The international market environment was also “restless” in 2021.

In Europe, the recent corona measures have again led to significant losses. In retail, the company is back on a sustainable growth path with a growth of 21 percent, in wholesale and online the increases were three and 27 percent respectively. Collaboration with regional fashion talents and brands should bring growth to key markets in the future. Digitization and further restructuring of the business model will continue.