Covid-19 impact dents Gerry Weber's Q1 sales

In the first three months of 2021, the business performance of Gerry Weber International AG continued to be strongly influenced by the global coronavirus pandemic. As a result, the group generated revenues of 46.4 million euros, a decrease of approximately 45 percent compared to the same period of 2020.

“The first quarter of 2021 was dominated by the lockdown and the pandemic. We were nevertheless able to increase our normalised EBITDA compared to the previous year. This makes us confident that we are on the right track - the restructuring exercises of the past years are beginning to pay off,” said Florian Frank, chief financial officer of Gerry Weber International.

Review of Gerry Weber International’s Q1 performance

The company said, due to the lockdown and intensive sales promotion measures, e-commerce revenues grew strongly by around 54 percent in the first quarter to 9.1 million euros, while revenues of the retail segment declined sharply to 20.1 million euros. With its wholesale partners, Gerry Weber generated revenues of 26.3 million euros compared to 44.7 million euros in the same period of the previous year.

Gross profit stood at 31.7 million euros compared to 51.7 million euros in the previous year, while the gross profit margin improved by 6.5 percentage points to 68.3 percent. EBITDA reached 4.8 million euros compared to 7.6 million euros in the previous year, while at negative 3 million euros, normalised EBITDA exceeded the previous year’s negative 3.5 million euros. Consolidated net income for the period was negative 10.1 million euros compared to negative 9.5 million euros.

For the fiscal year2021, the company’s managing board continues to project consolidated revenue between 260 million euros and 280 million euros and intends to further improve the company’s profitability. Normalised consolidated EBITDA is expected to improve to a negative low double-digit million figure.