Wünsche AG
Ad hoc-Service: Wünsche AG English
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Wünsche AG:
Marked improvement in Group profits as at 30 September.
Last year’s sales figure equalled /
Break-even result expected for the year/
Hamburg. Wünsche AG reported sales of DM 381.1 million as at 30
September 2000, showing small change from the equivalent period last
year (DM 382.1 million). However, Group profits of DM 200,000 were a
considerable improvement on the DM 21.2 million loss reported on 30
September 1999.
The Managing Board of Wünsche AG expects year-end sales to exceed
budget by 2%, as some sales have been postponed from the third to
the fourth quarter. At the same time, the Group is looking to
achieve a break-even result – a distinct improvement on the
comparable figure (- DM 33.7 million) for last year.
According to the Board, the operating results for the Group’s
companies have been diminished by the high level of marketing
investment required by their Joop! and Cinque subsidiaries. In
addition, the weakness of the euro has led to increased buying costs
for Miles and Jansen, two further subsidiaries of Wünsche AG. Both
of these factors will continue to have an effect into the fourth
quarter. However, a number of special factors will have a positive
impact both this year and next. Appropriate provisions have now been
made to cover the potential risk of claims from long-standing
Bauverein zu Hamburg AG shareholders.
The Board sees no justification for the current lacklustre share
performance, particularly in the light of these clearly improved
results and the investments that the Group now has in place for the
future.
The performance of the subsidiaries
Joop! GmbH experienced strong growth in the fragrance market, helped
in particular by the continuing success of its “rococo” fragrance
for women. JOOP! anticipates further growth in sales during the
months October to December, traditionally a strong trading period
for cosmetics products. Sales in the men’s fashion and accessories
segments increased by some 5%, although ladies’ fashions and jeans
were slightly weaker man last year.
Support for the expansion of the JOOP! brand included substantially
higher marketing expenses and increased investment in the UK and US
sales organisations. The great success of the recent fashion show in
New York, together with an increase in foreign customer inquiries,
is an indication that the strategy is on track. Cooperation with the
Heine Group continued, as two additional JOOP! stores opened in
Duesseldorf and Amsterdam. Joop!’s internal re-staffing programme
was also concluded successfully.
The third quarter is traditionally the strongest for Cinque, both
for sales and income. However, because delivery delays shifted some
sales into the fourth quarter, sales revenues for the third quarter
were 1.5% below the 1999 level. If inventories are moved along as
expected, sales by the year-end will exceed those of the previous
year. Profits for the year are also expected to be positive, even
though somewhat reduced by the very high investment in marketing
already mentioned.
The market reacted positively to the new advertising campaign, which
was allocated a generous budget. As well as securing new in-store
shop floor space with key business partners, the company opened its
first CINQUE Store for ladies’ fashions in Cologne. CINQUE now has a
total of 20 retail outlets.
Sales of Miles Handelgesellschaft International showed a marginal
increase in the first nine months of this year compared with the
previous year. Growth of 3-4 percent is expected by the end of the
year. Returned merchandise, which depressed the half-year results,
has now been successfully sold on. However, profits have been
impacted by the weaker euro, as goods imported from outside the EU
have become more expensive.
For the Miles Group, the third quarter 2000 saw a strategic
realignment of its Jac Tissot Fashion GmbH subsidiary. Jac Tissot
made successful inroads into the key account business, i.e.
supplying fashion products in bulk quantities with short lead times.
The Group was also able to achieve further dynamic growth in the
sports sector and, to support the expansion of its business with
major US customers, established a sales office in the USA.
Jansen GmbH has made great strides over the past nine months in
restructuring its product range and organisation. Thanks to more
efficient cost management, its results have improved over the
previous year. The short-term relocation of orders to non-dollar-
based supplier countries – necessary to maintain margins – resulted
in a slight decline in sales, though. Sales of functional underwear
and the new nightwear range look extremely promising. Overall, year-
end results are expected to show a marked improvement over last
year.
Please address enquiries to:
Corporate Communications Department
Tel: +49(0)40 419178-0
Fax: +49(0)40 419178-43
Pr@wuensche.de
Hamburg, 14 November 2000
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