Gerry Weber sees earnings decline in "difficult" Q1
Gerry Weber, the German fashion group, said its first quarter of 2015/16 was "difficult," as earnings deteriorated due to extraordinary expenses.
Sales revenue increased by 11.1% to €213.7m in the period. Gerry Weber said the increase was the result of the consolidation of the Hallhuber subsidiary, which contributed €50.5m to the Group's revenues. The company's Gerry Weber core retail segment reported a 3.4% expansion-related increase in Q1 sales, up to €109.6m, but like-for-like revenues in the segment fell by 7.5%.
Wholesale segment sales revenues fell from €86.4m to €53.6m year-on-year. This was due to lower pre-order volumes, a shift in deliveries, and shop-in-shops being reclassified from the wholesale segment to the retail segment.
The group's EBITDA declined from €24.2m to €14.5m, primarily due to the decline in the high-margin revenues of the Wholesale segment and the Gerry Weber core retail segment's like-for-like revenues.
Ralf Weber, CEO of Gerry Weber International AG, said: "The first quarter of 2015/16 has highlighted the great importance of the "Fit4Grwoth" programme we introduced in February. We have initiated the individual measures with great determination and are now focusing on the complex tasks. We aim to present the first tangible results to our shareholders, to the public, our employees and business partners on a regularly basis at the upcoming quarterly reporting."
The Gerry Weber Managing Board expects Group EBIT to amount to between €10m and €20m in the financial year 2015/16.
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