Gerry Weber to realign the business after ‘difficult’ year
German group Gerry Weber, owner of fashion brands Gerry Weber, Hallhuber, Taifun and Samoon, announced on Tuesday plans to realign the business after it was hit by the ‘challenging’ conditions in the German market in the 2014/15 financial year.
The group said sales revenues for the 12-month period ended on October 31 were up 8.1% to €920 million, but EBIT fell to €79 million from €108.9 million due to the decline in high-margin wholesale revenues and lower like-for-like sales. EBITDA also dropped from €134.2 million in the previous year to €115 million in 2014/15.
Meanwhile, sales revenues of the Gerry Weber core brands, excluding Hallhuber, were down 5.4% on the previous year. Sales declined by 4.4% on a like-for-like basis, which was in line with the general negative market trend in Germany.
Gerry Weber acquired the Hallhuber subsidiary in February 2015, and the brand contributed €115 million to group revenues thanks to newly-opened stores and rising like-for-like sales. However, according to the company, the initial consolidation of Hallhuber had an adverse impact on the group’s Ebit margin. Hallhuber generated a lower operating margin than the rest of the company’s core brands due to its expansion.
In the period Hallhuber opened 57 new sales floor spaces, and as of October 31, it operated a total of 275 directly-managed stores.
More details on the realignment programme will be disclosed at Gerry Weber’s annual accounts press conference on February 26.
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