Groupe Les Ailes de la Mode Inc.
TSX : MOD

Groupe Les Ailes de la Mode Inc.

July 21, 2005 11:00 ET

With Results on or Above Targets, Groupe Les Ailes de la Mode Held Its Annual Shareholder Meeting

BOUCHERVILLE, QUEBEC--(CCNMatthews - July 21 2005) - Groupe Les Ailes de la Mode inc. (TSX:MOD) held its Annual and Special Shareholder meeting this morning during which President and Chief Executive Officer David Margolis reported on the progress made in returning the Company to profitability and re-establishing the Company's leadership position.

"It is fair to say that regaining consumer confidence has been more of a challenge than expected at this time last year," said David Margolis, President and CEO. "However, "I am encouraged by our results so far this year. The strategies we've implemented over the past few months seem to be paying off. Our sales and profit objectives for the second quarter for both divisions are either on or above target and we remain optimistic of achieving profitability in the second half of fiscal year 2005."

In the past few months, le Groupe Les Ailes has embarked upon a new business plan geared towards regaining consumer confidence and loyalty in a non liquidation mode, rebuilding relationships with suppliers and landlords and towards re-establishing the leadership position the Company once enjoyed. Management's efforts have focused on new merchandising strategies and on improving product mixes in both the Les Ailes Stores and in the Bikini Village and Ocean Bikini Village swimwear division.

The Company has also been successful in improving its inventory turns while increasing its gross margins. It will be launching of a new line of branded active wear within Bikini Village in August 2005, introducing a great assortment of lifestyles products to satisfy its swimwear customers' appetite for complementary products while stimulating less seasonal sales.

"I am pleased to report that customers are reacting well," added David Margolis. "It is essential to understand that in the apparel industry, merchandise is committed six to nine months prior to delivery. Because of the extensive commitments made prior to me joining in October, it is only recently that we have seen the results of the strategies we have implemented over the last few months."

Financing activities

On June 3, 2005, Groupe successfully completed a $3.2 million financing by way of a private placement with the investors involved in its 2004 restructuring. The Company is continuing to review other financial and operating measures to meet its longer-term financial needs and its strategic goals with a view to maximizing shareholder value.

Board of Directors

At today's meeting, shareholders elected Paul Delage Roberge as Chairman of the Board of Directors. and Jean-Guy Lambert, Normand Legault, Real Mimeault, Richard Soly, Placide Poulin as Directors of the Company.

ABOUT GROUPE LES AILES DE LA MODE

Groupe Les Ailes de la Mode inc. is a retailer specializing in men's and women's clothing and related products. It operates two divisions: Les Ailes de la Mode, with stores in Brossard, Laval, Quebec City and Montreal, and the Bikini Village division, which operates 59 swimwear boutiques in Quebec and Ontario. Groupe employs 1,300 people.

Forward looking statements

This news release contains certain forward-looking statements concerning our future operations, economic performances, financial conditions and financing plans. These statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate in the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks, uncertainties and assumptions. Consequently, all of the forward-looking statements made in news release are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us and our subsidiaries or their businesses or operations.

We undertake no obligation and do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

Contact Information

  • Groupe Les Ailes de la Mode Inc.
    Roch Landriault
    (514) 843-2345