The Brinkmann Group increases its Profits.

The Herford-based Brinkmann Group’s balance sheet for 2009 shows an overall profit. Despite tough trading conditions the clothing manufacturer managed to increase its profits by a slight percentage in the business year ended. “Although 2009 was not an easy year for us in economic terms, thanks to restructuring measures that we introduced early on and rigid cost management – in logistics, too – we still achieved what was a good result for these times”, stress Managing Partners Wolfgang and Klaus Brinkmann.

Sales were down from 238 million euros the previous year to 212 million. Fifty per cent of the decrease in sales is due to the loss of the Burberry licence and the decline in the export business of the Etienne Aigner licensed brand. Whereas the Brinkmann Group’s domestic development was stable, it had to take export sales losses on the chin as a result of the global economic crisis. The sharpest declines were in Great Britain and Russia, countries particularly hard hit by the economic crisis. Exports accounted for 47 per cent of sales in 2009, which is slightly down on the 49 per cent figure for the previous year. The main export markets are Italy, France and the Netherlands.

The Group’s brands developed to varying degrees. bugatti, Pikeur, Wilvorst and Eduard Dresser stood their ground well. They all gained market shares. In the meantime the men’s fashion manufacturer parted company with a substantial loss-maker: the Blicker firm was closed on 31 March 2009, and Odermark was restructured. The Brinkmann Group improved its portfolio by taking these measures and regards itself as well positioned for the future.

Total investments amounting to one-and-a-half million euros were made for the Group in the last business year. At the beginning of the year an application is being made for the erection of another administration building at head office in Herford. The plan is for it to be ready for occupation in 2011. The investment in this project is about four to five million euros.

In Germany the Brinkmann Group employs 985 men and women, 48 of them trainees. The Brinkmann Group’s workforce worldwide is in excess of 4,000.

Development of the brands

The internationally successful bugatti label extended its market position in Germany in 2009. The export component of sales was down slightly by 3 per cent, but is still over 50 per cent.

The retail business developed well overall: turnover with retail space and stores was up 25 per cent. The increase is due in part to 21 new shops and stores that opened in Germany and abroad in 2009.

The licensed products were also able to benefit from this development, clearly gaining ground both in the retail sector and in the wholesale/core departments. bugatti has contracts with 15 partners, with the product lines ranging from headgear and shoes to bags, homewear and bed systems.

bugatti is to further increase investments in the brand this year. A widespread advertising campaign for the label is being launched in 2010, with the advertising aimed at positioning bugatti as a European brand. Accordingly, bugatti will be referring to itself in future as “The European Brand”. Already 4.5 million bugatti items a year are supplied to over 60 countries throughout the world. The brand is especially popular among Italians.

In 2009 the Brinkmann Group is relaunching designer Doris Hartwich’s fashion to strengthen the licensed brand for the future. The collection is positioned in the premium segment and sold under the “Hartwich” label. The relaunch is being put into action for Autumn/Winter 2010. The re-orientation will make the label even more attractive and more competitive. This is due to improvements in the collection itself, the price structure and the brand image. Reaction from the trade has been nothing but positive. The essence of the brand remains untouched: the designer’s internationally successful hallmark continues to render the men’s fashion label unmistakable.

The atelier torino and Corpus Line labels are organised under the umbrella of Wilvorst in Northeim, taking advantage of synergies within the group of companies. Corpus Line will be extending its market lead in particular through the innovative “One Step System” body-scanning computer system. This system has been tested successfully in the trade and heralds a new era in the made-to-measure clothing market. atelier torino is a successful brand in the Modern Classic segment. In sports jackets in particular this brand is attractive and sought after, thanks to interesting pricing and product developments.

Odermark has abandoned the DAKS licensed brand. However, it remains part of the Brinkmann Group and will be run in future by the Eduard Dressier company in Großostheim. In addition Eduard Dressler acquired the Kaiser Design brand in 2009. The high-quality suit and sports jacket brand chimes well with Eduard Dressler’s quality statement. The company is expecting to increase sales with the new brands. The Etienne Aigner men’s fashion licence is another one of Eduard Dressler’s brands.

As a full-range supplier of suits, sports jackets, trousers, coats, jackets and accessories, Eduard Dressler succeeded in maintaining its positioning and market shares in practically every market in 2009. It sustained slight decreases in sales only in the markets of Russia and Eastern Europe owing to the economic crisis. The company achieved growth is sales in Germany in the second half of the year. Pre-order figures for 2010 mean that altogether Eduard Dressler can look forward positively.

Wilvorst, the manufacturer of festive evening wear for men, did well in Germany in 2009 as well. The Northeim-based company saw a slight rise in domestic sales last year, meaning that Wilvorst is still the market leader in its segment in spite of increasing competition and the economic crisis. The company had to swallow declines in exports, there being reticence in foreign currency countries in particular to place orders. Wilvorst’s main foreign currency countries include Great Britain, Russia, Poland and the United Arab Emirates. Wilvorst operates in 35 countries. Its expansion with its own retail space is enjoying a positive development. The high domestic production component, 40 per cent, ensures quality, flexibility and know-how.

The Pikeur and Eskadron brands from Werther/Westphalia continued to be strong again in the world equestrian sport market in 2009. Although there was a dip in sales after twelve years of steady growth, last year still managed to finish on a high note. The company generated the third highest sale in its corporate history.

Because of the economic crisis there were evident sharp declines in some countries in the first six months of the year, especially in exports. In the second half of the year the mood did however lift, and the level of incoming orders re-stabilised.

In 2009 the company succeeded in acquiring the services as product endorser of Hinrich Romeike, the double Olympic winner in the Hong Kong Eventing and the public’s favourite. Romeike advertises the new Pikeur high-visibility jacket – an issue that is becoming increasingly important in equestrian sports. Other Pikeur and Eskadron ambassadors are Meredith Michaels-Beerbaum, Lisa Wilcox, Jessica Werndl, Benjamin Werndl, Ludger Beerbaum and Hubertus Schmidt, all gold medal winners in the Olympic, World or European championships.

The equestrian fashion specialist holds out great expectations for the World Equestrian Games in Kentucky/USA in September 2010. Pikeur will be the outfitter for the German national equestrian team, supplying the tournament and parade clothing. Pikeur has been the German Olympic Committee’s official outfitter since 1972, and has already secured the outfitter rights up to the London Olympics 2012.

The sales generated by Bekleidungshaus Roland in Bremen were on a par with the previous year. In the first full year after the fundamental re-arrangement in the second half of 2008, they achieved both target sales and sales income from the clearance sale prior to the conversion. A rise in women’s fashion sales made up for a slight dip in the men’s clothing segment.

The Managing Partners of the Brinkmann Group are Wolfgang Brinkmann (59) and his brother Klaus Brinkmann (57).

Herford, 22^ndJanuary 2010