German retailer Gerry Weber has reported a 2.1% drop in its revenues for the first quarter of 2016/2017, but saw a 7.7% rise in EBITDA, as the implementation of its realignment programme begins to pay off.
Sales revenues fell to €209.2m (£182.9m) compared to €213.7m (£186.8m) in the same period last year. Sales in the Gerry Weber core brands of Gerry Weber, Taifun and Samoon fell 2.4% compared to the same period last year, with like for like sales down 3.4%, due to store closures across the brands. This is slightly an improvement compared to last year, when like for like sales in the core brands fell 7.5%.
Despite falling revenues, EBITDA was up 7.7% to €15.6m (£13.6m) compared to €14.5m (£12.7m) in the same period last year. This was attributed to the implementation of measures to reduce cost structures within the business, with personnel expenses and operating expenses seeing changes.
Commenting on the results, Ralf Weber, CEO of Gerry Weber, said: “The first three months of 2016/17 show that the FIT4GROWTH realignment programme is effective and is beginning to bear fruit. The measures already implemented have not only had a positive effect on the cost structure of the core segment but have also helped to accelerate the modernisation of our brands. We must now continue to implement the realignment with great determination in order to return to profitable growth after the stabilisation phase.”
The company also confirmed its forecast for the year, expecting revenues for the current financial year (2016/2017) to fall by between 2% and 4%.