Bogner anticipates that it will manage a turnover rise in the fiscal year to the end of October, after a 2.5 percent decline in operating revenues to €150.6 million for the previous year.
The German winter sports apparel company's turnover was down in both its wholesale and retail business for the last fiscal year, and the growth of online sales could not make up for this downturn.
Due to accounting changes, Bogner's reported sales actually increased from €153 million to €155.2 million. Despite a decline in gross profit, earnings before tax reached €2.7 million, up from €2.3 million the previous year.
The operating revenues were below target, since Bogner wanted to stabilize its turnover for the year, but the company said that the performance should improve this year, based on an unspecified increase in orders for the spring as well as the winter. The profitability could improve as well, due to the implementation of a cost management program after the appointment of the management team led by Andreas Baumgärtner.
Bogner said that the start of the current fiscal year has been favorable in all geographic areas. The prolonged winter season was judicious for the brand's retail business and its online store. Bogner is preparing for an uptick in wholesale orders for the coming winter but it warns that it will be more hard-pressed to improve its retail sales, due to the industry-wide decreases in store traffic and growing competition from online retailers. Bogner anticipates a more buoyant performance for its own online business, with high growth rates in the U.S. and some newly-opened European markets. The company is projecting a sales increase in the mid-single-digit range, provided that there is growth in all three distribution channels.
The last year has been turbulent for Bogner with the abrupt departure in November of its chief executive, Alexander Wirth, who had been in the position for just about one year. It was taken over by Baumgärtner, who joined Bogner in November 2016 as board member in charge of sales and marketing.
The supervisory board was also adjusted last year after the departure its chairman, Jürgen Weber, and another board member. The chairmanship was taken over by Wolfgang Reitzle, former chief executive at Linde. The managerial shake-up continued earlier this year with the departure of two management board members, but the downsized board is complete again.
Baumgärtner previously explained that he launched a program to rejuvenate the Bogner brand and to make a clearer distinction with the Fire and Ice brand.
The company's sales of €150.6 million amount to a larger decline compared with a few years ago, when the brand's sales reportedly reached about €185 million. Apart from the managerial instability in the last months, Bogner may have been affected by uncertainties about its ownership as Willy Bogner sought to divest but eventually decided to hold on to the brand.
