GERRY WEBER continues to expand at fast pace
The GERRY WEBER Group continued its impressive success story in the fiscal year 2009/2010. At EUR 621.9 million, Group sales were up by 4.7 percent on the previous year's EUR 594.1 million.
“The excellent performance of our three brands was preceded by a consistent modernisation process. We have clearly rejuvenated our collections over the past years and now present a clear and consistent signature and an even more stylish design across all three brands,” said CEO Gerhard Weber.
“But the collections have not only been rejuvenated but also been downsized markedly in response to retailers' requests. The use of high-quality materials such as cashmere and leather has additionally given the collections a more international appeal, so that they now cater to the taste of consumers who want excellent quality and modern design.“
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 13.9 percent from EUR 83.6 million to EUR 95.2 million. Earnings before taxes (EBIT) climbed 17.0 percent from EUR 71.2 million to EUR 83.3 million, while earnings before taxes (EBT) rose by 19.9 percent from EUR 66.4 million to EUR 79.6 million.
The respective margins increased accordingly. At EUR 54.0 million, net income for the year was up 25.6 percent on the previous year's EUR 43.0 million. DVFA earnings per share improved from EUR 2.08 (based on 20,661,848 shares outstanding) to EUR 2.53 (based on 21,317,242 shares outstanding). The return on equity, based on earnings before interest and taxes, stood at 39.6 percent - compared to 44.8 percent in the previous year - due to the sale of own shares. The return on investment, based on EBIT, climbed from 24.3 percent to 25.5 percent.
To give the shareholders an appropriate share in the company's excellent performance, the Managing Board will propose a profit distribution of EUR 1.10 per voting share to the Annual General Meeting. The dividend will thus be approx. 30 percent higher than in the previous year.
On 31 October 2010, GERRY WEBER International AG employed 2,699 people, 279 people more than in the previous year. All 279 jobs were created in Germany.
For the current fiscal year, the GERRY WEBER Group projects Group sales of approx. EUR 700 million, which would represent an increase by more than 10 percent.
The EBIT margin is expected to climb to over 14 percent. The company projects double-digit sales growth also for the next two to three fiscal years. “In the past fiscal year, we have adapted our brand policy even more closely to consumers' requirements,” Gerhard Weber concluded. “We continue to expand the lead over our competitors and are ideally positioned to reach our growth targets.”
The company plans to further accelerate the expansion of its own Retail activities in the current fiscal year. Going forward, the company intends to open between 65 and 75 own HOUSES OF GERRY WEBER per year, plus another 60 to 70 franchised stores per year. Outside Germany, new HOUSES OF GERRY WEBER are planned primarily in Switzerland, Austria, Denmark, the UK and Spain. The company also projects high growth rates for the GERRY WEBER eShop.
As a strong partner to the retail sector, the GERRY WEBER Group will open some 200 new shop-in-shops in the current fiscal year. At the same time, cooperations with retailers under maximum order limit arrangements will be expanded.
GERRY WEBER Group