DGAP-Ad hoc: Adler Modemärkte AG

DGAP-Adhoc: Adler Modemärkte AG: Forecast for full year 2016 adjusted - Fundamentals for long-term growth intact

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

20.10.2016 18:22

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.

---------------------------------------------------------------------------

Haibach (near Aschaffenburg), 20 October 2016. Against the backdrop of a continuing difficult market environment, Adler Modemärkte AG recorded a decline in revenue of 9.5% to EUR 117.9 million (Q3 2015: EUR 130.2 million)in the third quarter of 2016. Following a downturn in July 2016, ADLER's revenue increased significantly in August 2016, whereas the newly arrived autumn garments did not find a ready market because of the mild, late-summer temperatures, and revenues dropped significantly. As a result, EBITDA declined to minus EUR 8.4 million in the third quarter of 2016, significantly below the comparable prior-year figure of EUR 0.6 million. During the first nine months of the year, revenue declined by 5.9% to EUR 375.0 million (9M 2015: EUR 398.6 million) and EBITDA came to minus EUR 7.7 million (9M 2015: EUR 4.6 million).

In response to these developments, ADLER has further strengthened the measures to increase efficiency which had already been initiated in the course of the year. These will result in additional cost savings as the year 2016 progresses.

In light of its performance in the third quarter of the year, ADLER is adjusting the forecast for full-year 2016, as given after the first six- months. The new marketing campaign launched in September is expected to boost operating performance in the rest of the year. Despite the positive business performance in October, ADLER forecasts consolidated revenue for the fourth quarter to be slightly below the previous year's level. This is because of the current decline in consumer spending and the associated price pressure. Accordingly, consolidated revenue for full-year 2016 is expected to fall short of the prior-year figure of approximately EUR 566 million. EBITDA should amount to between EUR 14 to 17 million, so that an after-tax loss is to be expected. ADLER aims to achieve a slightly positive free cash flow in 2016. The cash position at year-end will be clearly positive. The fundamentals for the already communicated sustainable long- term growth remain intact. ADLER's Management Board expects substantial cost savings in the amount of approximately EUR 10 million in the 2017 financial year, resulting from the range of measures to increase efficiency which were already launched in March 2016 and are now being reinforced. These measures are focusing on the consolidation and improvement of profitability as well as further increased competitiveness.

20.10.2016 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 ---------------------------------------------------------------------------