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  Corporate news transmitted by euro adhoc with the aim of a Europe-wide 
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Annual Financial Report 
 
Bregenz - 12. May 2021: Following the reopening of stores in Europe, the USA, 
and China after the first wave of Covid-19 in the second quarter of 2020, the 
renewed lockdown in Europe since October 2020 has led to significant business 
losses, which will extend in all probability into the second half of 2021. 
Nevertheless, Wolford generated sales of EUR68.0 million and therefore limited 
the decline in sales to EUR22.8 million (approx. 25%) compared to the same 
period of the previous year (May to December 2019). 
 
Strong short fiscal year despite Covid-19: Company able to pay off debt under 
its own management, earnings significantly higher than previous year 
 
Despite the sales losses due to Covid-19, Wolford achieved a result (Group 
Profit/Loss) of EUR+12.8 million and therefore significantly exceeded previous 
year's result of EUR-14.5 million. This figure includes the effects of the sale 
of real estate and the change in the value of right-of-use assets following the 
implementation of impairment tests. As reported, the purchase price of EUR72 
million for the property at Wolfordstrasse 1-3 in Bregenz was used at the 
beginning of May to pay off all debt. 
 
Wolford made good use of the short fiscal year and implemented further 
restructuring measures. In particular, the company systematically continued to 
implement its stringent plan for the sustainable realignment of Wolford. 
 
Personnel costs reduced by more than 20%, online sales increased by 45%, sales 
of Wolford Care Masks exceeded EUR10 million. 
 
Due to the implementation of the restructuring program "PITBOLI" (Program for 
Immediate Top and Bottom Line Impact), the planned measures were launched at the 
beginning of 2020 and Wolford achieved its sales and efficiency effects 
accordingly. The restructuring program "PITBOLI" thereby delivered a reduction 
of a further 20% year-on-year on the personnel cost side. The implementation of 
extensive additional measures in cash management ensured sufficient liquidity 
throughout the short fiscal year. The cash flow in the short financial year 
increased by EUR 9.7 million. 
 
In the reporting period, online sales have been the main growth drivers, with a 
45 % increase year-on-year. The revenue share of the company's own online 
business and the associated online business of its wholesale partners increased 
to a total of around 21 %. Wolford's retail and wholesale business also 
contributed to achieving sales. Both the Spring Summer 2020 and the Fall-Winter 
2020/21 collection were very well received in all channels. To date, a revenue 
of EUR10 million has been generated through the sale of approximately 700,000 
Wolford Care Masks since the beginning of production in March 2020. As a new 
accessory, the different styles of the Wolford Care Mask have become a must-have 
of the Wolford product range. 
 
Brand architecture extended, sales presence internationally strengthened 
 
The "The W" and "W lab" collections were also successfully incorporated into the 
brand architecture and are part of the new face of the Wolford brand. The 
collaboration with adidas has significantly exceeded expectations, as well as 
the launch of "The W" on the online platform Farfetch. Furthermore, a relaunch 
of the Essential Collection has started, which will be implemented in the 
upcoming months with targeted campaigns. With the Aurora Monogram products, part 
of "The W" collection, Wolford continues to increase its commitment to 
sustainability. All new Aurora Styles are Cradle to Cradle Gold Certified TM. 
Wolford's goal is to be the first eco-neutral brand in the fashion industry. 
 
Wolford's strategy to expand its presence in Poland, Scandinavia, United Arabic 
Emirates, Central America, and Japan is also successfully implemented. Wolford 
has reached partnership agreements with well-established agencies and 
distributors to leverage their markets' knowledge and presence in their 
respective territories and several multi-brand doors have been opened during 
2020. 
 
Outlook 
 
Wolford remains to see it as its goal within the fiscal year 2021 to reach 
breakeven As of March 31, 2021, Wolford has closed the first quarter of the 
current fiscal year with earnings (Group profit/loss) 22.4% higher than the 
previous year, thanks to the strict consolidation course, despite the ongoing 
store closures in Europe as a result of Covid-19 related lockdowns. Encouraging 
factors here were not only the continued success on the cost side, which is well 
ahead of plan, but above all a gross profit margin of 82.1%, 1.7 percentage 
points higher than in the same period of the previous year. Due to numerous 
additional sales measures such as remote selling and streaming, March sales was 
almost EUR2 million (38%) higher than March sales in 2020. 
 
With the new long-term strategy, "Northstar - Masterplan for Wolford" Wolford 
wants to ensure the continued success and sustainable realignment of the 
company. This involves an overall strategy regarding the topics "Brand", 
"Product Range", "Location" and "Channels" and the development of the "PITBOLI" 
measures towards 12 strategic projects. 
 
The reported results of the short fiscal year show that the management is 
focussing on the consistent realignment of Wolford. The decisive factors now are 
a continued stable sales performance despite the Covid-19 pandemic, as well as a 
consistent continuation of "PITBOLI" and the implementation of the Northstar- 
Masterplan-Strategy. 
 
 
 
Further inquiry note: 
Wolford AG 
Wolfordstraße 1 
6900 Bregenz 
 
Telefon: +43 (0) 5574 6900 
Email: investor@wolford.com 
http://company.wolford.com 
 
end of announcement                         euro adhoc 
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(END) Dow Jones Newswires

May 12, 2021 13:15 ET (17:15 GMT)