Gerry Weber slips to net loss in Full Year 17

Fashion retailer Gerry Weber International AG reported Thursday that its fiscal 2017 consolidated net loss was 0.8 million euros, compared to net income of 0.5 million euros in the prior year. Loss per share was 0.02 euro, compared to earnings per share of 0.01 euro a year ago.

Consolidated EBITDA for the year fell 24.7 percent to 58.2 million euros from 77.3 million euros in the previous year. The EBITDA margin declined to 6.6 percent from 8.6 percent last year.

EBIT for the year declined 25.5 percent from the prior year to 10.3 million euros, with extraordinary effects of 9.6 million euros from the realignment program FIT4GROWTH weighing on the results. Adjusted EBIT was 19.9 million euros, compared to 23.1 million euros last year. Group sales revenues for the year declined 2.2 percent to 880.9 million euros from 900.8 million euros a year ago. The company said it has launched a performance program to improve profitability.

Looking ahead to fiscal 2018, Gerry Weber said that in spite of the continued difficult and constantly changing market environment and the declining sales revenues generated by physical fashion stores, its managing board expects to generate almost stable Group revenues of 870 million euros to 890 million euros.

The extraordinary charges expected to result from the performance program are yet to be defined and the investments in the digitalisation of the company's business model will weigh on the Group's bottom line. Consequently, the Managing Board projects full-year reported consolidated EBIT between 10.0 million euros and 20.0 million euros. (dpa)