Ad-hoc-Announcement Half Year Results Wolford AG:Sales and earnings for the first half of 2007/08 Ad hoc announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------ Wolford completes first six months with significant sales growth that is topped by earnings expansion · Sales up by 18 percent · Double-digit sales advances in all major markets and strategic distribution channels · EBITDA and EBIT respectively improve by 26 and 43 percent · Sales target raised to about EUR 155 million In the first six months of this fiscal year, the Wolford Group's dynamic growth continued unabated, with a substantial rise in sales and disproportionately higher growth rates in profits. Double-digit sales expansion in all major markets and strategic distribution channels The Group’s sales in the first half of the fiscal year rose by 18.2 percent from EUR 64.7 million in the prior-year period to EUR 76.5 million. In the process, Wolford delivered double-digit growth rates in all key markets and strategic distribution channels. 'We again beat the year-earlier sales figure, with the highest year-over-year growth of 19.1 percent coming in the seasonally strong fiscal second quarter. We see this convincing sales performance as clear proof that our consistent realignment of Wolford’s product portfolio – especially in the Ready-to-Wear lines – and the sharply focused investment in points of sale were the right strategic choices,' says a pleased Holger Dahmen, CEO of Wolford AG, in reviewing the first half of the fiscal year. Vigorous earnings growth outpaces rate of sales expansion Even steeper than the sales trend in the first six months of the fiscal year was Wolford’s growth in earnings. In the second quarter, which along with the third quarter is traditionally one of the strongest periods of the year, the Austrian luxury fashion house was able to grow its earnings even more swiftly than sales. Thus, in the second quarter alone, EBITDA jumped 53.9 percent to EUR 9.8 million (Q2 2006/07: EUR 6.4 million) and operating profit (EBIT) expanded even more powerfully, by 71.0 percent to EUR 8.2 million (Q2 2006/07: EUR 4.8 million). For the EBITDA margin this translated to an increase of almost 5 percentage points to 21.4 percent; at 17.8 percent the EBIT margin as well was considerably higher than one year earlier (Q2 2006/07: 12.4 percent). The compelling second quarter made itself felt in the earnings results for the first half of the business year. In total over the first six months of the fiscal year, Wolford’s EBITDA climbed 25.5 percent from EUR 6.7 million to EUR 8.4 million and EBIT rose by 43.1 percent to EUR 5.1 million (H1 2006/07: EUR 3.6 million). There was also a marked improvement in pre-tax profit from continuing operations, which grew to EUR 4.0 million, up 53.8 percent (H1 2006/07: EUR 2.6 million). Profit from continuing operations before taxes, depreciation, amortization and impairment was boosted by EUR 1.6 million to EUR 7.3 million. At the reporting date of October 31, 2007, shareholders’ equity was EUR 76.2 million, or 14.8 percent above the year-earlier level of EUR 66.4 million. Earnings per share rose by a significant 37.8 percent from EUR 0.54 to EUR 0.74. Substantial growth in all major product groups In the first half of 2007/08, Wolford achieved a tangible increase in brand sales in every important product group. Particularly Legwear and Ready-to-Wear showed very satisfactory growth of, respectively, 16 and 19 percent. Brand sales in the Lingerie and Accessories product groups likewise grew at double-digit rates. Sales growth in the two figures in all main geographic markets As to market regions, in the first six months of the fiscal year the Wolford Group achieved double-digit growth rates in all major markets. In the long-established markets such as the Netherlands (up 34.3 percent), the United Kingdom (up 32.6 percent in Group currency; 33.1 percent in British pounds) and Scandinavia (up 23.6 percent), the international luxury goods label from Austria made excellent headway over the six-month reporting period. Wolford also achieved considerable growth in the Austrian domestic market (up 18.6 percent), in France (up 16.3 percent), Switzerland (up 13.6 percent in Group currency; 19.1 percent in Swiss francs) and Spain (up 13.0 percent). Similarly, double-digit growth continued in Germany (up 10.9 percent) and Italy (up 10.3 percent) as well as the USA (up 10.3 percent in Group currency; 18.9 percent in US dollars). In the Central and Eastern European countries and Asia/Oceania, Wolford further expanded sales thanks to the strategy of intensified, controlled growth implemented in these regions. Wolford boutiques drive sales With a sales expansion of 26.7 percent (or 13.3 percent on a like-for-like basis), Wolford’s proprietary stores – boutiques, shop-in-shops and factory outlets – accounted for much of the growth. In the first half of 2007/08 the prime movers of revenue remained the Wolford boutiques. Sales with partner-operated boutiques increased by 21.5 percent and the Wolford-owned boutiques saw even higher sales growth of 28.7 percent. Overall the boutiques registered revenue growth of 25.9 percent in the six-month reporting period compared to the first half of the prior year. New look distinguishes 121 locations worldwide Growth remained especially good at those Wolford boutiques and department store shop-in-shops which already sport the updated, bright and modern ambience. From the launch of the new concept’s rollout in August 2005 to the quarterly reporting date at the end of October 2007, the concept had already been executed at 121 locations (47 Wolford-owned and 74 partner-operated ones), including 20 stores in the second quarter of this year alone. The progressive, distinctive Wolford premium look thus now also graces stores such as the Wolford boutique in New York’s trendy Soho district, Wolford’s shop-in-shop at London’s luxury department store, Harrods, and the Wolford boutiques in Oslo and on Rue St. Honoré in Paris. Outlook for full year 2007/08: Sales growth to approximately EUR 155 million In the second half of the year Wolford will continue to focus on the twin strategic goals of systematic brand development and the permanent positioning as a luxury fashion brand. Alongside the ongoing optimization of the product portfolio in women’s outer garments (Ready-to-Wear) and Lingerie, Wolford will continue to emphasize the steady expansion of controlled distribution, primarily in the form of monobrand stores. For the current 2007/08 fiscal year as a whole, the Executive Board expects the good business performance to continue, with an increase in sales to about EUR 155 million and earnings that grow more rapidly than sales. Sales and earnings data for the first half of 2007/08 (May 1 to October 31, 2007) FIRST QUARTER SECOND QUARTER SIX MONTHS Amounts in EUR ‘000 except per-share data EndedJuly 31, 2007 EndedOct. 31, 2007 EndedOct. 31, 2007 EndedOct. 31, 2006 Change in % Sales 30,517 45,990 76,507 64,737 18.18% EBITDA (1,427) 9,842 8,415 6,704 25.53% EBITDA margin based on sales -4.68% 21.40% 11.00% 10.36% EBIT (operating profit) (3,066) 8,162 5,096 3,562 43.07% EBIT margin based on sales -10.05% 17.75% 6.66% 5.50% Profit from continuing operations before taxes (3,544) 7,551 4,007 2,605 53,84% Net profit for the period (2,999) 6,613 3,614 2,543 42.13% Earnings per share in EUR (0.61) 1.35 0.74 0.54 37.78% Profit from continuing operations before taxes and DA&Im* (1,905) 9,231 7,326 5,746 27.48% * DA&Im represents depreciation, amortization and impairment Contacts: Holger Dahmen (Chief Executive Officer) Peter Simma (Deputy Chief Executive Officer) Investor@wolford.com Wolford AG, Wolfordstraße 1, 6901 Bregenz, Austria +43 (0) 5574/690-0 www.wolford.com (c)DGAP 14.12.2007 --------------------------------------------------------------------------- Language: English Issuer: Wolford AG Wolfordstraße 1 6901 Bregenz Österreich Phone: +43/5574/6907434 Fax: +43/5574/6907440 E-mail: investor@wolford.com Internet: www.wolford.com ISIN: AT0000834007 WKN: 83400 Indices: ATX Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in Frankfurt; Foreign Exchange(s) Wien End of News DGAP News-Service ---------------------------------------------------------------------------