DGAP-Ad hoc: Adler Modemärkte AG

DGAP-Adhoc: Adler Modemärkte AG: Revenue and income stabilise in Q2 - forecast for full-year 2016 adjusted

Adler Modemärkte AG / Key word(s): Change in Forecast

02.08.2016 18:47

Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Despite the anticipated positive momentum in May and June, Adler Modemärkte AG's revenues declined by roughly 4% year on year from EUR 268.4 million to EUR 257.1 million in the first half of 2016 due to the challenging environment in the textile retail sector. Revenue decreased by just 1.0% to EUR 151.8 million in the second quarter. EBITDA declined from EUR 4.5 million to EUR 0.7 million in the first half of the year, although the figure of EUR 17.3 million in the second quarter nevertheless signalled a return to roughly the prior-year level. In response, ADLER has already launched a wide range of measures to increase efficiency. These will result in substantial cost savings as the year progresses.

In light of its performance in the first half of the year and what continues to be a challenging market environment, ADLER is adjusting the forecast for full-year 2016, as given in the 2015 Annual Report. Since the forecast calls for consolidated revenue to be at no more than the prior-year level in the second half of 2016, full-year revenue is expected to fall short of the prior-year figure of approximately EUR 566 million. The new marketing campaign to be launched in September is expected to boost operating performance in the fourth quarter. EBITDA should amount to between EUR 27 million and EUR 30 million. ADLER therefore continues to aim for significant after-tax earnings and considerable positive free cash flow in 2016.

02.08.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

--------------------------------------------------------------------------- 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, Tradegate Exchange End of Announcement DGAP News-Service ---------------------------------------------------------------------------