Tom Tailor Holding SE reported earnings results for the second quarter and first half of 2018. For the quarter, the company reported revenues of €209.5 million against €227.4 million a year ago. EBITDA was €22.7 million against €21.9 million a year ago. EBIT was €13.2 million against €13.4 million a year ago. Net income for the period was €10.6 million or €0.26 per share against €6.6 million or €0.17 per share a year ago. Again, the TOM TAILOR GROUP was also able to increase its cash flow from operating activities significantly in the second quarter to €35.7 million against €25.9 million a year ago. The increase is mainly due to the decline in net working capital. Free cash flow improved to €27.7 million in the same period (Q2 2017: €22.2 million). The overall positive development of free cash flow reduced net debt as of 30 June 2018 to €136.7 million (31 March 2018: €161.1 million).

While the German fashion market has shrunk on average by 2% in the past six months, the Hamburg fashion company was able to increase sales of its TOM TAILOR brands by 1.2% to €277.8 million (H1 2017 less the decline in sales through the RESET program: €274.5 million). Although the Group's total sales fell slightly by 1.0% to €399.3 million - mainly due to technical difficulties in starting up the new e-shops at the beginning of the year and the weak first quarter for BONITA (H1 2017 less the decline in sales through the RESET program: €403.4 million) - however, the Group's reported gross profit margin increased to 60.8% (H1 2017: 56.5%) at the same time. EBITDA was €26.8 million against €30.7 million a year ago. EBIT was €8.0 million against €11.8 million a year ago. Net income for the period was €2.0 million or €0.01 per share against €0.1 million or €0.04 loss per share a year ago. Cash generated from in operations was €4.1 million against €22.2 million a year ago.

In the financial year 2018, the TOM TAILOR GROUP is aiming to compensate in part for the slight decline in sales due to the RESET measures through profitable growth in the core markets and individual growth markets such as Russia and Southeastern Europe. Thus, a moderate increase in the EBITDA margin compared to the previous year is forecast, with an upgrade of the digital infrastructure and analytics capabilities to support this development.