A SALES slump of 18 per cent in its first quarter led hosiery and lingerie distribution group Wolford to predict a “low single digit” loss for its 2016/17 fiscal year. The company attributed the sales decline to political uncertainty in the US, terrorism in France and Brexit. These negative factors, together with the foreign exchange effects related to the weaker GBP, had caused an EBIT loss of EUR 8.3m as well as a 9 per cent decline in the brand’s retail sales. In response, the group plans to intensify its cost cutting measures.
It remains to be seen whether the planned reduction of costs will allow the resumption of profitable operations in 2017.