DGAP-News: Ongoing realignment leaves a mark on GERRY

DGAP-News: Gerry Weber International AG / Key word(s): 9-month figures Ongoing realignment leaves a mark on GERRY WEBER's earnings for the first nine months of 2015/16 14.09.2016 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Corporate News Ongoing realignment leaves a mark on GERRY WEBER's earnings for the first nine months of 2015/16 - Sales revenues up 1.3% to EUR 638.5 million in the first nine months of 2015/16, with HALLHUBER contributing EUR 133.6 million - High negative effects and depreciation/amortisation in connection with the realignment weighed on earnings - Implementation of the "FIT4GROWTH" realignment programme continued successfully: 40 stores have already been closed, the first top stores have been refurbished, new brand has been introduced, revision of the digitalisation strategy has begun (Halle/Westphalia, 14 September 2016) In the first nine months of the financial year 2015/16, the GERRY WEBER Group held its ground in a difficult market environment. Sales revenues were up 1.3% to EUR 638.5 million on the prior year period. The GERRY WEBER Core brands (GERRY WEBER, TAIFUN and SAMOON) contributed EUR 504.8 million to the Group's sales revenues (first nine months of the previous year: EUR 559.8 million). The 9.8% drop in sales revenues is primarily attributable to a sharp decline in the GERRY WEBER Core Wholesale segment. Wholesale sales revenues were down from EUR 243.7 million to EUR 191.4 million in the first nine months of the current financial year. This was primarily due to the continuing restraint seen in Wholesale customers' pre-orders. Sales revenues of the GERRY WEBER Core Retail segment were down by a moderate 0.9% to EUR 313.5 million - in particular due to a drop in like-for-like revenues as well as the first store closures. The gross margin of the GERRY WEBER Core brands nevertheless improved notably from 58.9% in the previous year to 62.0% in the current financial year, which was primarily attributable to measures taken in connection with the current realignment. The HALLHUBER subsidiary contributed EUR 133.6 million or 20.9% to the Group's sales revenues in the reporting period. This increase by 20.7% on the first nine months of the previous year is attributable not only to the newly opened shops and stores but also to like-for-like growth of 4.7%. In the past nine months, HALLHUBER clearly outperformed the German fashion market which according to TW-Testclub (Textilwirtschaft) saw sales revenues shrink by 2% to 3%. The Group's earnings before interest, taxes and depreciation/amortisation (EBITDA) dropped from EUR 63.0 million to EUR 40.7 million in the first nine months of 2015/16 due to an expansion-related increase in personnel and other operating expenses of the HALLHUBER subsidiary as well as to the effects in connection with the realignment programme. Depreciation/amortisation in the first nine months of 2015/16 rose sharply from EUR 25.0 million in the previous year to EUR 40.1 million. This increase was primarily due to non-scheduled depreciation in the context of store closures in the amount of EUR 7.5 million. As a result, earnings before interest and taxes (EBIT) dropped sharply from EUR 38.0 million to EUR 0.6 million in the first nine months of 2015/16. Ralf Weber, CEO of GERRY WEBER International AG, explains: "As expected, the negative effects and depreciation/amortisation in connection with our FIT4GROWTH realignment programme clearly weighed on our earnings in the first nine months of the financial year 2015/16 but we are running to plan - and our measures are taking effect. 40 stores have, for instance, already been closed, and another 35 to 40 are to follow by the end of the financial year. Of the top 17 stores we are rebuilding, the store in Hamburg has already been reopened and the one in Munich will open on 15 September. We have also introduced talkabout, our new brand which we will develop further together with our Wholesale partners. Moreover, we are pushing ahead our digitalisation strategy and the expansion of our online activities. HALLHUBER's online business is already showing an impressive performance, with sales revenues up by round about 50% in the first nine months. Therefore, we are confident to continue our programme FIT4GROWTH successfully." Outlook 2015/16 In spite of the challenging general conditions and the not entirely satisfactory operating performance in the current financial year 2015/16, the Managing Board is upholding its full year guidance in anticipation of a significantly stronger fourth quarter. For the financial year 2015/16, the Managing Board continues to project consolidated sales revenues of between EUR 890 million and EUR 920 million, to which HALLHUBER will contribute EUR 180 million to EUR 190 million. Taking all burdening effects resulting from the implementation of the "FIT4GROWTH" realignment programme into account, consolidated EBIT should come in, as expected, at between EUR 10 million and EUR 20 million. Key figures of the GERRY WEBER Group*: <pre> 9 months 9 months Q3 2015/16 Q3 2014/15 2015/16 2014/15 Sales revenues 638.5 630.5 194.8 197.8 (in EUR million) EBITDA (in EUR 40.7 63.0 10.8 10.4 million) EBITDA margin 6.4 % 10.0% 5.5 % 5.3 % (in %) EBIT (in EUR 0.6 38.0 -7.8 1.8 million) EBIT margin (in 0.1 % 6.0 % -4.0 % 0.9 % %) Net result of -4.0 22.2 -6.9 0.3 the period (in EUR million) Earnings per -0.08 0.48 -0.15 0.01 share (in Euro) Equity ratio 50.7 % 52.5 % 50.7 % 52.5 % (in Euro) Headcount 7,053 6,981 7,053 6,981 (average) </pre> *HALLHUBER consolidated as of February 2015 GERRY WEBER International AG <pre> Investor Relations Contact Press Contact Claudia Kellert Catharina Berndt Head of Investor Relations Head of Corporate Communications phone: +49 (0)5201 185 8422 phone: +49 (0)5201 185 320 email: email: claudia.kellert@gerryweber.com catharina.berndt@gerryweber.com </pre> --------------------------------------------------------------------------- 14.09.2016 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. Archive at 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: SDAX Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 501455 14.09.2016