German womenswear brand Gerry Weber has said it will return to profit growth in 18 to 24 months following a realignment of the group.
The business said sales of Gerry Weber core brands (Gerry Weber, Taifun and Samoon) were not satisfactory and slipped 5.4% to €805.6m (£635.8m) this year. EBITDA amounted to €115.8m (£91.4m) down from €134.2m (£106m) the previous year.
To turn the business around the group said it will optimise retail operations, adjust structures and processes, strengthen wholesale operations and modernise the brands.
A total of 103 Gerry Weber stores worldwide will close this year and in 2017.
Ralf Weber, chief executive of the company, said: “Gerry Weber is facing the most challenging situation in the history of the company. My fellow board members and I are determined to take all necessary measures to overcome this phase as quickly as possible and lay the basis for long-term profitable growth.
”The realignment programme will take 18 to 24 months and will entail major challenges, primarily for our employees. In this situation, cuts will need to be made to secure the Gerry Weber Group’s position as a strong fashion and lifestyle company in the long term.”