A challenging wholesale climate and ongoing realignment programme have resulted in a difficult start to the year for Gerry Weber.
Overall sales revenues at Gerry Weber rose by 1.3% in the first nine months of the financial year. However, the Gerry Weber core brands (Gerry Weber, Taifun and Samoon) saw a sales revenue drop of 9.8% to €504.8m (£428.9m) compared to the same period last year.
The brand blamed this drop on a challenging wholesale segment of their core brands, with buyer restraint on pre-orders noted to have impacted sales. Wholesale sales revenues were down from €243.7m (£207.7) to €191.4m (£162.6) in the first nine months of the current financial year.
Sales revenues of the Gerry Weber core retail segement were also down by 0.9% to €313.5m (£266.4) as a result of a like-for-like sales drop and store closures.
The group’s EBITDA dropped from €63m (£53.5m) to €40.7m (£34.6) during the first nine months of the year, which it attributed to an increase in personnel and operating expenses as part of the HallHubber expansion.
Ralf Weber, CEO of Gerry Weber International, explained the results come were anticipated as the company undergoes a realignment programme.
He said: “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. We are pushing ahead our digitalisation strategy and the expansion of our online activities.”