Adler Modemärkte AG: ADLER Opens Two New Stores in Austria

Press Release
from Adler Modemärkte AG

Access to Attractive Customer Portfolio in Fohnsdorf and Zell am See

ADLER Opens Two New Stores in Austria

New Stores Opened under Store Optimisation Programme

Haibach (near Aschaffenburg), 13 August 2019: Adler Modemärkte AG is opening two new stores in Fohnsdorf and Zell am See, Austria, under the store optimisation programme announced at the beginning of 2019. "By opening these new stores, we are pleased to be adding further attractive customer catchment areas to our existing 22 ADLER locations in Austria", said Carmine Petraglia, CCO of Adler Modemärkte AG, about the two new store openings.

The store at Flugplatzstraße 3 in Zell am See boasts 900 m² in retail space and will be an attractive port of call for potential ADLER customers from 4 September 2019. With the closest ADLER store in Salzburg around an hour's drive away, the new store will enable ADLER to gain new customers in the densely populated Salzburg state. The new store has its own car park.

From 29 August, ADLER will operate a new store with 800 m² of retail space in Arena Fohnsdorf, Upper Styria. The shopping centre is the region's largest, with over 100 stores and approximately 6 million visitors per year. Arena Fohnsdorf boasts an ideal retail mix for ADLER's target group of over 55-year-olds. The aim is to make every visit a shopping experience, which ties in with the principles defined in ADLER's communications strategy. With the closest ADLER store over 60 km away in Kapfenberg, this likewise rules out the "cannibalisation" effect on customer numbers.

Store Optimisation Programme to Help Boost Profitability

ADLER's Strategy 2020, launched last year, was expanded in early 2019 to include a store optimisation programme. The focus is on attractive locations that make a positive, long-term contribution to earnings. It includes closing up to 17 loss-making stores, the majority in 2019 with closures already completed in Kaufbeuren, Herne, Worms and Neumünster. The optimisation programme also envisages opening up to six stores in promising locations. In addition to the two mentioned above, another store was opened in Freiburg at the end of April and has proven very popular with customers.

After a good performance in the first six months and a positive start to the third quarter, ADLER is well on track to achieve its full-year targets for 2019. As already announced, revenue of just under EUR 500 million is expected in financial year 2019 due to the location adjustments. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of between EUR 73 million and EUR 78 million are expected, including the effects from the first-time adoption of IFRS 16 in the amount of between EUR 46 million and EUR 48 million, which were already announced in the 2018 annual report. One-off expenses ranging from EUR 64 million to EUR 69 million are anticipated in connection with the planned store closures.

Adler Modemärkte AG press enquiries and investor relations
Jasmin Dentz
Investor Relations
Tel.: +49 6021 633 1828
E-mail: investorrelations@adler.de

About Adler Modemärkte AG:
Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. In 2018, the Group earned EUR 507.1 million in revenue and generated EUR 20.7 million in EBITDA prior to IFRS 16 (adjusted: EUR 26.2 million). As at 30 June 2019, ADLER has approximately 3,600 employees and currently operates 173 stores, 146 of which are located in Germany, 22 in Austria, three in Luxembourg, two in Switzerland, plus an online shop. The Company focuses on large-space concepts offering in excess of 1,400 m² of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to 70 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 55 and over.
For more information: www.adlermode-unternehmen.com; www.adlermode.com