Weak retail industry weighs down performance: full-year revenue and earnings forecasts revised; liquidity up significantly year on year

Inside information pursuant to Art. 17 MAR from Adler Modemärkte AG

[published on 7 November 2018, 7.26pm CET]

Weak retail industry weighs down performance: full-year revenue and earnings forecasts revised; liquidity up significantly year on year

Haibach (near Aschaffenburg), 7 November 2018: In light of the extraordinarily hot and long summer as well as downbeat industry expectations for the holiday season, Adler Modemärkte AG had revised downward its forecast for 2018 overall as reported in the 2017 Annual Report.

The management now expects revenue for the overall year to be down slightly year on year at€525.8 million; previously, it had been expected that revenue would be roughly on par with the prior-year level. EBITDA is now expected to range between€20 million and€24 million, down from€26-29 million.

ADLER continues to have a very healthy balance sheet structure. At 30 September 2018, liquidity amounted to€47.5 million and was thus€10.9 million higher than at 30 September 2017 (€36.6 million).

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Following a solid development in the third quarter, which was difficult for the industry as a whole, demand was below expectations in October and the first days in November due to the warm weather; additionally, a representative survey by Ernst&Young also tempered expectations for business at the holidays throughout the textiles retail sector.

Regardless of the current trend, ADLER is still well positioned to finance the measures launched as part of its 2020 strategy on its own thanks to its strong liquidity. As previously, the Company can leverage this extremely sound financial foundation to return the Group to a profitable growth path as planned in the medium to long term.

As predicted, the ADLER 2020 Strategy and the already announced switch in the logistics service provider will begin to have a positive effect on earnings for the first time in financial year 2019.

ADLER will publish its full report on the first nine months of 2018 on 8 November 2018.

Press enquiries Adler Modemärkte AG:

Katrin Schreyer

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About Adler Modemärkte AG:

Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. In 2017, the Group earned€525.8 million in revenue and generated€32.0 million in EBITDA (adjusted:€25.4 million). As at 30 September 2018, ADLER has approximately 3,800 employees and currently operates 179 stores, 151 of which are located in Germany, 23 in Austria, three in Luxembourg, two in Switzerland, plus an online shop. The Company focuses on large-space concepts offering in excess of 1,400 m2of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to 70 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 55 and over.

For more information:www.adlermode-unternehmen.com;www.adlermode.com