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Gerry Weber H1 revenues decline 3.6 percent

In the first half from November 1, 2016 to April 30, 2017, consolidated sales revenues of the Gerry Weber Group were down 3.6 percent on the same period of the previous year to 427.8 million euros (480 million dollars).

Commenting on the first half trading, Ralf Weber, CEO of Gerry Weber International said in a press release, “The figures for the first six months of 2016/17 are fully to plan, which makes us optimistic that we will reach the objectives we have set ourselves for the full financial year. The market environment remains difficult but we responded at an early state.”

Core retail segment revenues down 6.8 percent

The company said, its core brands – Gerry Weber, Taifun, Samoon and Talkabout contributed 334.9 million euros (375 million dollars) compared to 352 million euros (394 million dollars) in first half of the previous year, to total group revenues. Hallahuber, the Munich-based subsidiary, generated 92.9 million euros (103 million dollars), contributing around 21.7 percent to group revenues.

The core retail segment generated 192.3 million euros (215 million dollars) in revenues and the wholesale segment recorded revenues of 142.6 million euros (160 million dollars). The company said, 6.8 percent decline in the core retail segment’s revenues is primarily attributable to the closure of 115 core brand stores in the context of the Fit4Growth programme.

The company added that after declining at a disproportionate rate in the past financial year, like-for-like retail revenues stabilised at market level in the first six months of the current financial year, dropping by 3.4 percent in the first quarter and 1.5 percent in the second quarter.

Revenues generated by the Gerry Weber online shops are contributed 13.9 million euros (15.6 million dollars) to core retail sales, representing an increase of 11.6 percent compared to the first half of the previous year. The online share of core retail sales thus increased from 6 percent to 7.2 percent. Hallhuber’s online operations generated revenues of 9.1 million euros (102 million dollars) in H1 2016/17, up 7.1 percent on the previous year. Online revenues thus accounted for 9.8 percent of Hallhuber’s total revenues.

Sales revenues of the Gerry Weber core wholesale segment declined by 2.1 percent to 142.6 million euros (160 million dollars). The Hallhuber brand contributed 92.9 million euros (104 million dollars) to group revenues in H1 2016/17. Although sales revenues remained almost unchanged, the brand’s gross margin improved from 60.6 percent in the first half of the previous year to 63.3 percent in the reporting period.

The group’s consolidated EBITDA was down by 3.3 percent to 28.9 million euros (32 million dollars). The group’s consolidated EBIT decreased to 6 million euros (6.7 million dollars) in H1 2016/17.

Expects 2016/17 revenues to be down 2 to 4 percent

The company added that in view of the prevailing challenging market conditions and the performance in the first six months of 2016/17, the managing board confirms the forecast for the full year and expects sales revenues to be 2 percent to 4 percent lower than in the previous year and consolidated EBITDA reported of between 60 million euros and 70 million euros (67 to 78 million dollars) compared to previous year’s 77.3 million euros (86 million dollars).

Consolidated EBIT reported is expected to amount to between 10 million euros and 20 million euros (11 to 22 million dollars).

Picture:Gerry Weber website