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Gerry Weber reports decline in FY16 sales

By Prachi Singh

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Business

According to preliminary figures for the past financial year 2015/16, revenues of Gerry Weber International amounted to about 900 million euros (960 million dollars) compared to 920.8 million euros (982 million dollars) last year. Consolidated reported EBIT ranges between 13 and 14 million euros against 79.3 million euros (84.6 million dollars) in 2015. This, the company said, is in accordance with management’s guidance of consolidated EBIT (reported) of between 10 and 20 million euros (10.6 to 21 million dollars).

The company said, Hallhuber subsidiary contributed 183 million euros (195 million dollars) to Group sales revenues. This represents an increase by 17.7 percent on the previous year. Like-for-like sales revenues rose by 2.1 percent.

Preliminary revenues of the company’s core brands

Combined revenues of core brands Gerry Weber, Taifun and Samoon amounted to approximately 717 million euros (764 million dollars), down 10.9 percent on the previous year. The Gerry Weber core retail segment generated sales revenues of 419 million euros (447 million dollars). The company added that like-for-like revenues declined by 7.6 percent because of the continued difficult market environment and the related low footfall figures.

Core Retail revenues were down also due to store closures related to the “Fit4Growth” programme. Online revenues showed a positive trend and reached 43.9 million euros (46.8 million dollars), up 22 percent on the previous year. Consolidated EBITDA reported dropped from 115.8 million euros (123.4 million dollars) in the previous year to about 77 million euros (82 million dollars).

Gerry Weber expects 2016/17 to be another difficult year

Gerry Weber said, as the market conditions remain difficult, customer footfall continues to decline and consumers shopping behaviour is changing, the current financial year 2016/17 will again be influenced by the realignment programme, as announced at the disclosure of the programme. The Managing Board expects the respective burdens to amount to 6 million euros (6.3 million dollars) in the current financial year.

Against this background, the Managing Board does not expect earnings to increase significantly in the current financial year 2016/17 and projects consolidated EBIT (reported) of 10 to 20 million euros (10.6 to 21 million dollars) as well as a moderate decline in Group sales revenues of 2 to 4 percent. Consolidated EBITDA reported is expected to amount to between 60 and 70 million euros (63 to 74 million dollars).

Picture:Gerry Weber

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