TOM TAILOR Holding SE / Key word(s): Strategic Company Decision/Change in Forecast
TOM TAILOR HOLDING SE to write down 120-130 mn EUR for BONITA
12-Dec-2018 / 19:04 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Hamburg, December 12, 2018 - The board of TOM TAILOR HOLDING SE has reiterated its ambitious medium-term growth targets in a market environment that continues to be challenging and presented measures to achieve those targets.
As announced on 20 September 2018, the management board of TOM TAILOR HOLDING SE has carried out an in-depth evaluation of the shareholding's intrinsic value and the brand value of BONITA. The evaluation leads to a write-down of 120-130 million euros against the value of the BONITA brand effective 31 December 2018. Due to countervailing effects of the release of deferred taxes the effect on full year results after taxes will be lower and amount to 84-90 million euros. BONITA is to be restructured, stabilised and prepared for all value-adding options. This may also entail a sale of BONITA, which, however, would not be the preferred option in the short term.
In the same time the TOM TAILOR HOLDING SE will implement comprehensive measures to focus on increased growth of the TOM TAILOR core brand. The Fosun Group, with 28.89 per cent the biggest single shareholder of TOM TAILOR HOLDING SE, as well as the financing banks support further development of the core brand and the restructuring plans for BONITA.
The write-down against the brand value and the increase of provisions for contingent losses in unprofitable BONITA-Stores resulting from lower expectations concerning profitability lead to an accounting effect that will have an unplanned impact on EBITDA and results on group level. Furthermore, the weaker than expected operational performance of BONITA in the fourth quarter will lower the EBITDA. While the group's annual sales targets remain unchanged between 840 and 860 million euros, TOM TAILOR HOLDING SE now expects to generate an EBITDA margin of 6-6.5 per cent for the financial year 2018 due to these effects. The management board of the TOM TAILOR HOLDING SE expects the business unit TOM TAILOR to reach an EBITDA-margin of >10 per cent, while BONITA is expected to finish the business year 2018 with a negative EBITDA-margin. The targets that have been communicated for the medium term until 2021 remain unchanged.
Lena Christin Wulfmeyer
Head of Corporate Communications
TOM TAILOR GROUP
Telefon: +49 (0) 40 58956-420
Head of Investor Relations
TOM TAILOR GROUP
Telefon: +49 (0) 40 58956-449
12-Dec-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de