DGAP-News: Adler Modemärkte AG

DGAP-News: Adler Modemärkte AG: Outlook for 2016 Remains Positive Despite Slow Start to the Year

DGAP-News: Adler Modemärkte AG / Key word(s): Quarterly / Interim Statement Adler Modemärkte AG: Outlook for 2016 Remains Positive Despite Slow Start to the Year

03.05.2016 / 07:30 The issuer is solely responsible for the content of this announcement.

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Revenue and Earnings Weighed Down by Weather Conditions / Measures to Reduce Costs and Stimulate Business Successfully Initiated

Haibach (near Aschaffenburg), 3 May 2016. Adler Modemärkte AG's revenue in what is traditionally the weakest quarter of the financial year from January to March fell year on year by 8.5% from EUR 115.1 million to EUR 105.3 million. Like-for-like revenue decreased by 7.7%. This development was due to the extremely mild winter - which weighed down results across the entire textile retail industry - as well as to the fact that the early Easter holiday meant that there was one fewer day of sales than in the same quarter of the previous year. Moreover, clearance sales in connection with the optimisation of ADLER Orange's product range also led to a EUR 2.2 million decline in revenue.

Gross profit amounted to EUR 50.5 million (previous year: EUR 56.9 million) with the gross profit on goods sold falling from 49.5% to 47.9%. By contrast, the decline in EBITDA (earnings before interest, tax, depreciation and amortisation) from EUR -13.0 million to EUR -16.6 million was less pronounced since non-recurring restructuring and integration expenses were reduced significantly, as planned. Operating earnings before interest and tax (EBIT) declined from EUR -17.0 million in the previous year to EUR -20.6 million and earnings before tax (EBT) fell from EUR -18.2 million to EUR -21.9 million. Given the year-on-year increase in tax income, ADLER reported a consolidated net loss of EUR 15.0 million as at 31 March 2016 (previous year: consolidated net loss of EUR13.5 million). The adjusted earnings per share amounted to EUR -0.81 (based on 18,510,000 no-par value shares). Earnings per share totalled EUR -0.73 in the same quarter of the previous year.

As is common in the first quarter, cash and cash equivalents fell significantly as compared to the end of 2015 (EUR 52.1 million), although they will climb back to this approximate level over the course of the remaining year. This decline results from the decrease in revenue, the seasonally typical reduction in cash and the consolidated net loss for the period. At 31 March 2016, cash and cash equivalents amounted to EUR 21.1 million as compared to EUR 40.9 million at the same date of the previous year.

Outlook for 2016 remains positive Given that a weaker start to 2016 had already been factored in to its planning, the Executive Board confirmed its confident outlook for the current financial year at the financials press conference on 17 March 2016. "We continue to anticipate revenue growth in the low single-digit percentage range. EBITDA is expected to outpace revenue and increase in the upper-single-digit percentage range. ADLER has taken measures to reduce costs and to stimulate business, and these measures have been successfully initiated. Savings were already being realised as early as in March 2016. In addition, we expect our new marketing concept to provide significant positive momentum for revenue growth in the months to come", said ADLER CEO Lothar Schäfer.

Adler Modemärkte AG's full quarterly report is now available for inspection or download from the Company's homepage at http://www.adlermode-unternehmen.com/investor-relations/berichte-publikati onen/quartalsberichte/.

ADLER Group's key performance indicators

(EUR million) Q1 2016 Q1 2015 Change

Revenue 105.3 115.1 -8.5% Gross profit 50.5 56.9 -11.2% Earnings before interest, taxes, -16.6 -13.0 -27.7% depreciation and amortisation (EBITDA) Earnings before interest -20.6 -17.0 -21.2% and taxes (EBIT) Earnings before taxes (EBT) -21.9 -18.2 -20.3% Earnings per share (in EUR)* -0.81 -0.73 -11.0% * Based on 18,510,000 no-par value shares

31 March 2016 31 Dec. 2015 Change

Total assets (EUR million) 240.5 243.4 -1.2% Equity (EUR million) 89.8 104.9 -14.4% Equity ratio (in %) 37.4 43.1 -5.7 pp Debt/equity ratio (in %) 1.68 1.32 Cash and cash equivalents 21.1 52.1 -59.5% EUR million) Employees 4,160 4,203 -1% Total number of stores 178 178 -

About Adler Modemärkte: Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. In 2015, the Group generated revenue of EUR 566.1 million with a workforce of around 4,200, generating EUR 33.3 million in EBITDA. ADLER currently operates 178 stores, 153 of which are located in Germany, 21 in Austria, two in Luxembourg, one 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 more than 60 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 45 and over. For more information: www.adlermode-unternehmen.com; www.adlermode.com

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03.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Language: English Company: Adler Modemärkte AG Industriestraße Ost 1-7 63808 Haibach Germany Phone: +49 (0) 6021 633 0 Fax: +49 (0) 6021 633 1299 E-mail: info@adler.de Internet: www.adlermode.com ISIN: DE000A1H8MU2 WKN: A1H8MU Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of News DGAP News Service ---------------------------------------------------------------------------

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