Ahlers posts 30 percent drop in Q3 sales
12 Oct 2020
The revenue trend of the first half of the year at Ahlers Ag continued at a slower pace, which was down 33 percent and in the third quarter, the group’s sales revenues declined by 30 percent to 38.2 million euros, while sales revenues declined by 32 percent or 50.7 million euros to 108.9 million euros in the first nine months. The company added that revenues in Germany dropped 27 percent, while other large euro zon e countries France, Italy and Spain, exceeded the group trend.
“We have responded consequently to the extraordinary challenges of this year and introduced extensive measures to reduce our costs at in the short and medium term,” said Dr. Stella A. Ahlers, the company’s CEO, adding, “Unfortunately, 80 employees across all units and hierarchical levels will be affected by these measures, as well due to the relocation of logistics services and the Pionier Workwear Model Department from the Herford site to Poland.”
Even after the gradual reopening of the stores since May 2020, Ahlers said in a statement, the measures taken to contain the pandemic and the travel restrictions continued to impede fashion retail. In addition, the impact of the pandemic on international supply chains led to a postponement of autumn/winter deliveries from the third to the fourth quarter of 2020. The 26.8 million euros or 34 percent decline in gross profit to 52.7 million euros was mainly due to the significantly reduced revenues, while EBIT before one-time effects declined to 10.1 million euros in the reporting period, while consolidated earnings declined from 0.4 million euros in the previous year to negative 10.9 million euros.
“We expect that the postponed deliveries of the third quarter will be largely made up for in the fourth quarter and that sales revenues will only decline moderately in the fourth quarter of 2020. In the full fiscal year 2019/20, the revenue trend should therefore be at around negative 25 percent to negative 30 percent,” added Dr. Karsten Kölsch, CFO of Ahlers AG.