Textile giant in trouble

Wolford remains deep in the red

Demand in the luxury segment has recently collapsed, which means that fewer Wolford underwear items are being purchased.

(Bild: APA/HERBERT NEUBAUER)

The former Vorarlberg flagship company is not emerging from the crisis. The Executive Board now wants to implement a "robust restructuring plan" and turn the business model around. It is a matter of bare survival. 

Wolford was once an icon of the Vorarlberg textile industry, but today the company is just bobbing along. In the first half of 2024, the loss after taxes amounted to 24.98 million euros, compared to a loss of 16.11 million euros in the same period of the previous year. Turnover from January to June also slumped by 26.74% to EUR 43.08 million. The reporting period was characterized by "considerable challenges and transitions", according to the Management Board, which has consisted of the new CEO Regis Rimbert, Domenico Giordano and COO Ralf Polito since the summer.

Falling demand and macroeconomic uncertainties
The company is struggling with declining demand in the luxury segment and macroeconomic uncertainties in key regions. The priority now is to implement a "robust restructuring plan".

The aim is to optimize the supply chain and inventory management and to significantly shorten time to market. This is not just about cutting costs, but about fundamentally changing the business model "to ensure that Wolford achieves sustainable growth in a rapidly evolving market". However, no changes to the brand strategy are planned.

After all, the main shareholder, the Chinese Fosun Group, is still prepared to inject money. At the beginning of July, Wolford had already received a shareholder loan of one million euros, followed by two further tranches of two million euros each in August and September.