Performance Report Of German Arles Group In The First Half Of The Year

Germany Clothing manufacturing Ahlers Group developed steadily in the first half of 2011/12 fiscal year, with sales of 121.6 million euros (122 million euros in the same period of the previous fiscal year). Regardless of the impact of exchange rate, the sales of the shirt business of Jupiter brand increased by 0.5%. Sales of high-end brands such as Baldessarini, Pierre Cardin and Otto Kern increased strongly by 5.5% to 71.1 million euros (67.4 million euros in the same period last year). The performance of all brands in the department has increased, and the market share has also increased. The sales of high-end brands accounted for 58% of total sales, up from 55% last year.

In addition, Gin Tonic of Ahlers Group Brand clothing The sales development of the company is unsatisfactory, which has a negative impact on the overall good development trend of the company. The sales of men's clothing and sportswear decreased by 3.7 million euros, or 17.7%. Therefore, the Group formulated a rectification plan for the clothing department of Tonic Juni brand in June, which will be implemented in the second half of 2012. The new management team will focus on the large and complete business of men's clothing in the future.

The retail sales of Ahlers Group increased by 11%, and the proportion of retail sales in total sales increased from 9.3% to 10.3%. The adjusted retail sales increased by 2%, which is totally different from the market development trend.

Affected by the price pressure of Gin Tonic brand clothing and the conservative inventory table of product copies, the gross profit of Ahlers Group in the first half of 2011/12 fiscal year decreased. This effect is mitigated by lower costs. The group's EBIT before special expenses fell to € 4.6 million (€ 5.8 million in the same period last year). As of May 31, 2012, affected by lower inventory and demand, Arles (Ahlers) Group's own capital ratio increased to 62.5% (60.3% in the same period last year). As the net working capital reached 4.7 million euros, the group's operating cash flow was also higher than that of the same period last year.

Influenced by the good development trend and restructuring costs, the profit of the Group in 2011/12 will be lower than that of last year of € 10.1 million. The cash flow that developed well in the first half of the year will continue to the second half of the year, and the performance at the end of the financial year will develop steadily with satisfactory dividends.