Deepest fall for Gerry Weber shares in 14 years

Gerry Weber International AG fell the most in more than 14 years in Frankfurt trading after the German fashion chain warned financial targets for 2015 are “no longer ensured.”

On the wake of the news, the stock plunged as much as 29 percent to 21.12 euros, the most since Bloomberg records began in 2000. Gerry Weber shares were down 23 percent at 21.22 euros in early trading in Frankfurt, taking the stock’s fall this year to 38 percent and cutting the retailer’s market value to 980 million euros.

The cause of this dive is to be found in the company’s prediction of a decline of 20 percent to 25 percent in earnings before interest and tax, compared to that increase anticipated by analysts.

The German retailer cited a preference among German consumers to buy higher-priced products such as cars or furniture, or to invest their money in real estate, as another great threat to its business sustainability.

First-half earnings fell by 15 percent to 52.5 million euros excluding interest, tax, depreciation and amortisation. Profit was affected by above-average markdowns on seasonal products, and increased costs of expansion, according to the company.