Luxury hosiery brand Wolford has posted its first annual profit in two years, which the company attributed to a strategic refocus of its core business.
The company’s earnings before tax rose to EUR1.56 million during the 12 months ending in April, from EUR-0.97 million in the same period last year.
Revenues edged up 1%, supported by positive foreign exchange effects, the brand said in a statement.
The growth comes in spite of the EUR6.14 million negative effect caused by the closing of 20 unprofitable points of sale during 2013/14 and 2014/15.
Ashish Sensarma, who took the reins of Wolford as CEO in January, commented: "Wolford’s transformation process is continuing, but our strategy to refocus on the company’s core expertise and the systematic optimization of our own points of sale have brought the first positive results.
"During the past financial year Wolford has created an important foundation for sustainable and profitable growth,” added Sensarma.
Over the last two years, Wolford has dropped its swimwear business to concentrate on its core product offering, including legwear and lingerie, and increased its marketing budget to strengthen global campaigns.
In November 2014, the brand kicked off the second stage of its international brand awareness campaign with the launch of a billboard advert in Times Square, New York, and a European pop-up shop tour.
Wolford’s online business continued its successful development with an increase of 24% in revenues in the financial year ending in April.
However, wholesale revenues declined by 2%, partly due to problems with individual trading partners and the Ukraine crisis.
The brand said activities undertaken to revitalise the brand, adjust the product line, refocus market communications and optimise controlled distribution will continue.