GERRY WEBER stays in fast lane; all brands perk up

16 Jun '11

4 min read

Hitting new sales and earnings records, the GERRY WEBER Group continued its successful performance in the first half of 2010/2011. Group sales revenues were up by 11.4% on the previous year. All earnings figures increased disproportionately.

“We continue to expand our market lead. Besides our GERRY WEBER core brand, which has been among the best known and most successful brands in the German clothing retail sector, our two other labels are back in the fast lane, too. Sales revenues of TAIFUN rose by 9.5%, while SAMOON by GERRY WEBER improved by 14.1%,” said CEO Gerhard Weber. “Incoming orders for the seventh collection for the autumn/winter 2011 season are even more impressive. Growth rates of 24.4% for GERRY WEBER, 31.8% for SAMOON and as much as 48.4% for TAIFUN mean that we are poised to hit new records.”

The Group's sales revenues rose from EUR 305.5 million to EUR 340.4 million in the first half of 2010/2011, which represents an increase by 11.4%. The strong growth was again driven by the GERRY WEBER core brand and the company's own Retail activities. Sales revenues in the Retail segment, which comprises the concession shops as well as the 192 company-managed HOUSES OF GERRY WEBER and the GERRY WEBER eShop, increased by 27.7% from EUR 78.8 million to EUR 100.7 million.

The company once again increased its profits at a disproportionate rate. In the first half of 2010/2011, earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 19.5% from EUR 38.8 million in the prior year period to EUR 46.4 million. Earnings before interest and taxes (EBIT) increased by 22.9% from EUR 33.0 million to EUR 40.6 million. Earnings before taxes (EBT) rose by 25.8% from EUR 31.2 million to EUR 39.2 million. The respective margins increased accordingly. Net income for the period climbed by 24.2% from EUR 20.5 million to EUR 25.5 million. DVFA earnings per share amounted to EUR 1.11 (based on 22,952,980 shares outstanding), up from EUR 0.99 in the previous year (based on 20,817,242 shares outstanding).

The company employed an average of 2,861 people in the first half of 2010/2011. This represents an increase by 350 (previous year: 2,511). Most of the new jobs were created in the Retail segment, i.e. at the company-managed HOUSES OF GERRY WEBER.

The fast growth of the GERRY WEBER Group continued in the current fiscal year. The company projects consolidated sales revenues of approx. EUR 700 million for the current fiscal year, which represents an increase by more than 10% on the previous year. The EBIT margin will rise to over 14%. Sales are expected to increase at double-digit rates also in each of the next two to three years, while the EBIT margin should climb to 15%.

Opening between 65 and 75 company-managed HOUSES OF GERRY WEBER per year, the Retail segment will grow even faster in future. The number of concession stores at El Corte Inglés, the largest Spanish department store chain, isto increase from 29 to about 40. “The Retail segment remains our main growth driver and will accelerate its pace of growth once more,” Gerhard Weber concluded. “Besides our own HOUSES OF GERRY WEBER, we will increasingly rely on our online shop, which is reports double-digit growth rates.”

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