Gerry Weber posts 1.3 percent rise in nine months revenues

In the first nine months of the financial year 2015/16, the Gerry Weber Group reported 1.3 percent rise in sales revenues to 638.5 million euros (716.6 million dollars) on the prior year period. The Gerry Weber core brands – Gerry Weber, Taifun and Samoon contributed 504.8 million euros (566.4 million dollars) to the Group’s sales revenues against 559.8 million euros (628.3 million dollars) in the first nine months of the previous year. The company said, 9.8 percent drop in sales revenues is primarily attributable to a sharp decline in the Gerry Weber core wholesale segment.

“As expected, the negative effects and depreciation/amortisation in connection with our Fit4Growth realignment programme clearly weighed on our earnings in the first nine months of the financial year 2015/16 but we are running to plan – and our measures are taking effect. 40 stores have, for instance, already been closed, and another 35 to 40 are to follow by the end of the financial year. We have also introduced talkabout, our new brand which we will develop further together with our wholesale partners,” said Ralf Weber, CEO of Gerry Weber International.

Highlights of the first nine months results

Wholesale sales revenues were down from 243.7 million euros (273.4 million dollars) to 191.4 million euros (214.8 million dollars) in the first nine months of the current financial year. Sales revenues of the Gerry Weber core retail segment were down by 0.9 percent to 313.5 million euros (351.8 million dollars), due to a drop in like-for-like revenues as well as the first store closures.

The gross margin of the Gerry Weber core brands improved notably from 58.9 percent in the previous year to 62 percent in the current financial year, due to measures taken in connection with the current realignment.

The Hallhuber subsidiary contributed 133.6 million euros (149.9 million dollars) or 20.9 percent to the Group’s sales revenues in the reporting period. This increase by 20.7 percent on the first nine months of the previous year is attributable not only to the newly opened shops and stores but also to like-for-like growth of 4.7 percent.

The Group’s EBITDA dropped from 63 million euros (70.7 million dollars) to 40.7 million euros (45.6 million dollars).

Maintains full-year guidance

In spite of the challenging general conditions and the not entirely satisfactory operating performance in the current financial year 2015/16, the Managing Board is upholding its full year guidance in anticipation of a significantly stronger fourth quarter.

For the financial year 2015/16, the company continues to project consolidated sales revenues of between 890 million euros (999 million dollars) and 920 million euros (1,032 million dollars), to which Hallhuber is expected to contribute 180 million euros (202 million dollars) to 190 million euros (213 million dollars).

Picture:Facebook/Gerry Weber