Austrian clothing and tights manufacturer Wolford has revised its projections for the current financial year and warned of a dent in profits after January sales declined.
In spite of a slight recovery in its revenue in November and over Christmas, with sales matching the prior-year level, revenue in January fell. The revenue decrease is 8% compared to last year.
The weak market environment in the first half-year along with negative currency effects, particularly the pound, and internal problems in sales planning damaged earnings.
Wolford said the management is fully focusing on realizing additional revenue potential and improving the company’s operating results.
The firm said it will not be able to compensate for the corresponding revenue decline and the losses incurred before its financial year ends in April.
Against this backdrop, the management expects an operating loss ranging between minus €8 million (£6.8m) and minus €10 million (£8.5m) for the entire current 2016/17 financial year.
The Wolford Group will restructure its financing in order to ensure sufficient financial resources to fulfill the company’s liquidity needs.