Press release -
BOGNER Closes FY 2020/21 Above Plan Despite Pandemic, and Invests in the Future
- BOGNER reports turnover of 122.5 million euros and positive result despite industry crisis
- Iconic company uses crisis year to restructure and lower debt
- Eight-figure amount invested in performance program, digitalization, and internationalization
BOGNER closed the 2020/21 financial year above plan and achieved earnings before interest and taxes (EBIT) of €7.3 million (previous year: €3.0 million),with the sale of the company's headquarters in Munich making a significant contribution. The globally successful lifestyle and luxury sports fashion company thus achieved a solid result, particularly in view of the pandemic-related crisis that the entire fashion industry and, above all, winter sports had to contend with. BOGNER generated sales of €122.5 million, which, as expected, was down on the previous year (€163 million) but well above target.
In July 2020, BOGNER had unveiled a comprehensive performance program it had initiated even before the outbreak of the Covid-19 pandemic. The program is intended to reduce complexity and to make BOGNER faster, more flexible, and more profitable in the long-term. As part of this program, BOGNER had agreed a financing package with banks that gives the company financial stability and scope for future investments over a period of three years. BOGNER used this tailwind to consistently drive forward its performance program in the challenging environment of the past financial year, and to position the company for the future. Among other things, BOGNER initiated the planned reduction in staff and the outsourcing of the logistics center. In addition, BOGNER successfully sold the company headquarter building in Munich for €55 million, which gave the company additional opportunities for investments and debt reduction.
“Our team at BOGNER worked hard to overcome the crisis while setting important cornerstones for a successful future,” said Gerrit Schneider, co-CEO of BOGNER. “We restructured the company and paid down loans. At the same time, we invested an eight-figure amount in performance improvement, internationalization, and digitalization. And on top of all this, we achieved sales and earnings above plan and closed the year, a difficult year for everyone, with a profit. This shows BOGNER’s strength and the willpower of our entire team.”
BOGNER is in the process of positioning itself to be even more international, digital, and sustainable. The strategy is having an effect: The company’s own online store was significantly up with a 30-percent increase in sales and now generates around 20 percent of sales. The Wholesale division also contributed around €5 million more turnover than planned. Although this did not compensate for the slump in the stationary business caused by the Corona lockdowns, it did cushion the impact considerably.
“Thanks to our systematic internationalization strategy, BOGNER is already very well positioned in growing markets like Russia and the U.S. This is paying off. Our investments in new concepts such as pop-up stores, as well as the expansion of our product range to include capsule collections and our strategic collaborations with renowned artists, designers, and brands are also having an impact. Our new concepts have increased the visibility and relevance of the BOGNER brand, and we have been able to attract new international customers in the luxury segment,” said BOGNER Co-CEO Heinz Hackl. “We are well on track for further global growth of our brand.”
In the 2021/22 financial year, BOGNER plans to further focus its sales channels on Digital & Wholesale, so as to take advantage of developments in customer behavior that have been intensified by the pandemic. The company is also aiming for above-average growth in its B2B business in the U.S. and China. As part of its growth strategy in China, the 2022 Winter Olympics in Beijing are to be used as a catalyst to further advance BOGNER’s market entry. BOGNER is also exploring new paths in the area of sustainability, including working with innovative materials to make collections even more resource-friendly.
Willy Bogner GmbH & Co. KGaA, based in Munich, is an internationally successful lifestyle company and the leading provider of exclusive sports fashion, luxurious sportswear and designer fashion. The company appears in over 50 countries with the BOGNER (Woman, Man, Sport, Kids) and FIRE+ICE brands as well as licences. The company, which has existed since 1932, is led by Heinz Hackl and Gerrit Schneider, owner is Willy Bogner represented by trustee Arndt Geiwitz. More information: bogner.com.