DGAP-News: Gerry Weber: Increase in sales revenues but

DGAP-News: Gerry Weber International AG / Key word(s): Half Year Results Gerry Weber: Increase in sales revenues but decline in operating result for H1 2014/15 12.06.2015 / 07:42 --------------------------------------------------------------------- Corporate News GERRY WEBER: Increase in sales revenues but decline in operating result for H1 2014/15 - Earnings fall short of expectations in spite of 4.8% increase in revenues in H1 2014/15 - Revenue growth supported by GERRY WEBER Retail expansion and HALLHUBER - Group EBITDA declines by 14.9% to EUR 52.5 million in H1 2104/15 (Halle/Westphalia, 12 June 2015) In the first six months of the current financial year 2014/15, GERRY WEBER International AG generated consolidated sales revenues of EUR 432.7 million (H1 2013/14: EUR 412.8 million), which represents an increase of 4.8% on the previous year. The rise in revenues is attributable to the initial consolidation of HALLHUBER and to the expansion of the GERRY WEBER Retail segment. HALLHUBER made a revenue contribution of EUR 33.8 million in the second quarter of 2014/15. In spite of the 6.7% increase in sales revenues to EUR 201.3 million (H1 2013/14: EUR 188.6 million), the GERRY WEBER Retail segment suffered from difficult market conditions, low footfall and high markdowns. This is clearly reflected in the 4.6% decline in like-for-like sales. HALLHUBER was able to increase its like-for-like sales by 1% in the first half of 2014/15, thus clearly outperforming the German market as a whole, which reported a decline by 5%. The 6.7% increase in the GERRY WEBER Retail segment's sales revenues is mainly attributable to the new sales spaces opened in the past 24 months. As of 30 April 2015, there were 800 company-managed GERRY WEBER, TAIFUN and SAMOON sales spaces as well as 237 own HALLHUBER sales spaces. Earnings before interest and taxes Due to the lower-than-planned sales revenues, the increased markdowns on seasonal items and the expansion-related higher fixed costs, earnings before interest, taxes, depreciation and amortisation (EBITDA) were down by 14.9% on the first half of the previous year to EUR 52.5 million in the first half of 2014/15. Especially the decline in Wholesale revenues and in like-for-like sales of the GERRY WEBER Retail segment led to this sharp drop in six-month EBITDA. Both segments generate high margins and make a major contribution to the company's EBIT, which means that a reduction has disproportionate effects on the company's bottom line. The expansion-related increase in personnel and other operating expenses, both at HALLHUBER and, in particular, in the GERRY WEBER Retail segment, also weighed on the Group's EBITDA. Compared to the first half of 2013/14, personnel expenses were up by 19.9% to EUR 87.5 million and other operating expenses by 20.5% to EUR 119.2 million. Against this background and due to HALLHUBER's historically lower EBITDA margin (6.3%), the EBITDA margin of the GERRY WEBER Group as a whole declined from 15.0% in the first half of the previous year to 12.1% in H1 2014/15. In addition, increased depreciation/amortisation resulting from the Retail expansion and the HALLHUBER acquisition weighed on the bottom line of the GERRY WEBER Group. Depreciation/amortisation rose by EUR 4.0 million to EUR 16.3 million in the first half of 2014/15. Taking into account the above factors, earnings before interest and taxes (EBIT) of the GERRY WEBER Group amounted to EUR 36.2 million in H1 2014/15, down by 26.8% on the first six months of the previous year. Accordingly, the EBIT margin declined from 12.0% in H1 2013/14 to 8.4%. Taking into account the financial result (EUR -2.7 million) and income taxes (EUR -11.6 million), the GERRY WEBER Group's net income for the first half of 2014/15 amounted to EUR 21.9 million (H1 2013/14: EUR 32.7 million). In view of the sales and earnings performance in the first half of 2014/15 and the continued difficult market environment, the GERRY WEBER management adjusted its short-term forecast for the current financial year on 9 June 2015. Management now expects sales revenues for the GERRY WEBER Group (incl. HALLHUBER) to increase by a high single-digit percentage compared to the previous year. Earnings before interest and taxes of the GERRY WEBER Group (incl. HALLHUBER) will be between 20% and 25% lower than in the previous year 2013/14. Key figures of the GERRY WEBER Group for H1 2014/15 <pre> H1 2014/ H1 2013/ Q2 2014/ Q2 2013/ 15 14 15 14 Sales revenues (in EUR millions) 432.7 412.8 240.3 222.4 EBITDA (in EUR millions) 52.5 61.8 28.3 37.5 EBITDA margin in % 12.1 % 15.0% 11.8 % 16.9% EBIT (in EUR millions) 36.2 49.5 18.8 31.3 EBIT margin in % 8.4 % 12.0% 7.8 % 14.2% Net income for the period (in EUR 21.9 32.7 11.4 21.1 millions) Earnings per share (in EUR) 0.48 0.71 0.25 0.46 Equity ratio (in %) 51.9% 67.7 % 51.9 % 67.7% Headcount (average) 6,987 4,866 6,987 4,866 </pre> Admitted to the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) ISIN: DE0003304101 WKN: 330410 <pre> GERRY WEBER International AG </pre> Investor Relations Contact Claudia Kellert Tel: +49 (0)5201 185 8422 Email: c.kellert@gerryweber.de <pre> Corporate Communication Contact Catharina Berndt Tel: +49 (0)5201 185 320 Email: c.berndt@gerryweber.com </pre> --------------------------------------------------------------------- 12.06.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Gerry Weber International AG Neulehenstraße 8 33790 Halle/Westfalen Germany Phone: +49 (0)5201 185-0 Fax: +49 (0)5201 5857 E-mail: c.kellert@gerryweber.de Internet: www.gerryweber-ag.de ISIN: DE0003304101 WKN: 330410 Indices: MDAX Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 367679 12.06.2015