- Prachi Singh |
Consolidated sales revenues of Gerry Weber International AG amounted to 189.8 million euros (234.8 million dollars) in the first quarter of the fiscal year 2017/18, compared to 209.2 million euros (258.8 million dollars) in the same period of the previous year. The company said, while Hallhuber recorded an increase in revenues to 58.9 million euros (72.8 million dollars) or 17.8 percent, sales revenues of the Gerry Weber core segment including Gerry Weber, Taifun, Samoon and Talkabout) declined from 159.2 million euros (196.9 million dollars) to 130.8 million euros (161.7 million dollars).
Commenting on the Q1 results, Ralf Weber, CEO of Gerry Weber International AG, said in a media release: “On the one hand, the first quarter of 2017/18 was influenced by shifts in revenues in the Gerry Weber Wholesale segment, which will be offset in the course of the next three months. On the other hand, changes to the merchandise management system in the Gerry Weber core retail segment and the resulting decline in revenues generated by the core retail segment weighed on our group sales revenues and earnings.”
The company said, drop in the core segment’s revenues was the result of a shift in the deliveries of merchandise to its wholesale partners to the second quarter of 2017/18, the stores already closed according to plan in the context of Fit4Growth and the Gerry Weber core retail segment’s like-for-like revenues in Germany.
Highlights of Gerry Weber’s Q1 results
Revenues generated by Gerry Weber, Taifun and Samoon at the company’s own points of sale, declined by 19.1 percent to 80.6 million euros (99.6 million dollars) in the first quarter due to the store closures and 8.8 percent drop in like-for-like revenues compared to the prior year quarter. With 75 stores closed in 2015/16, another 68 stores were closed in 2016/17.
Sales revenues generated by the online shops of Gerry Weber, Taifun and Samoon increased to 7.4 million euros (9.1 million dollars) or 8.8 percent in the first three months of the current fiscal year. First-quarter revenues of the Gerry Weber core wholesale segment dropped 50.2 million euros (62 million dollars) in the current fiscal year. For the full fiscal year, the company continues to expect wholesale revenues to remain stable compared to the previous year.
Hallhuber’s revenue growth, the company added, is attributable to both the expansion-related increase in the number of POS and to the 5.5 percent rise in like-for-like revenues. Brand’s online operations almost doubled from 4.2 million euros (5.1 million dollars) in Q1 of the previous year to 8 million euros (9.8 million dollars).
As a result of the lower revenues of the Gerry Weber core retail segment and the shift in wholesale revenues to the second quarter of the current fiscal year, the group’s EBITDA declined from 15.6 million euros (19.2 million dollars) to 7.8 million euros (9.6 million dollars). Hallhuber contributed 6.5 million euros (8 million dollars) to the group’s EBITDA. EBIT of the Gerry Weber Group declined to 3.5 million euros (4.3 million dollars).
Gerry Weber confirms revenue forecast for FY18
The company said that it reaffirms forecast issued at the end of February 2018, which projects stable consolidated sales revenues of between 870 million euros and 890 million euros (1,075.9 to 1,100.7 million dollars) for the fiscal year 2017/18. In view of the developments outlined above and the extraordinary charges that will arise from the measures of the programme yet to be developed, the managing board projects consolidated EBIT reported between 10 million euros and 20 million euros (12.3 to 24.7 million dollars) for the current fiscal year.