Sales of Gerry Weber Group’s core brands (Gerry Weber, Taifun and Samoon) fell 7.5% on a like-for-like basis in the first quarter, as the business started to implement its turnaround plan announced in January.
The core brands reported an expansion-related 3.4% increase in first-quarter sales to €109.6m (£86.1m), while wholesale revenues fell 37.4% to €53.6m (£42.1m) as a result of lower pre-order volumes and a shift in deliveries.
German women’s fashion group, Hallhuber, which Gerry Weber Group bought in December 2014, boosted group turnover by 11.1% to €213.7m (£167.9m), contributing €50.5m (£39.7m) to revenues.
EBITDA fell 40% to €14.5m (£11.4m) during the period.
The group said it expects full-year sales of between €890m and €920m (£700m and £723m), while EBIT will be between €10m and €20m (£7.8m and £15.7m). The biggest contribution to earnings would come from Hallhuber.
Ralf Weber, chief executive of Gerry Weber, said the results highlighted the importance of the firm’s restructuring programme.
“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 regular basis at the upcoming quarterly reporting.”
To turn the business around the group said it will optimise retail operations, adjust structures and processes, strengthen wholesale operations and modernise the brands.
Gerry Weber will close 103 of its 1,270 stores worldwide this year and in 2017. Three-quarters of the closures will be in Germany. As previously reported by Drapers, the brand is mulling closing eight of its 16 UK stores.