Gerry Weber International AG / Final Results
27.02.2008
Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Halle/Westphalia, 27 February 2008
- Double digit-sales growth and disproportionate improvement in all
earnings ratios
- Strong expansion planned for the current financial year
In fiscal 2006/2007, GERRY WEBER International AG generated the highest
sales and earnings in the history of the company. Sales rose to the record
level of EUR 507.1 million which was up 14.5 percent on the previous year
(EUR 442.8 million). A clear increment in incoming orders has also given
the GERRY WEBER Group a headstart into the current financial year.
Pre-orders for the Spring/Summer Collection 2008 improved 14.7 percent on
the same season of the prior year. 'Our fast pace of growth vindicates our
decision to raise our retail profile, which has enabled us to clearly
improve on independent retailers sell-through rates', commented Gerhard
Weber, Chairman of the Managing Board.
The GERRY WEBER Groups unique positioning in the market enabled another
disproportionate improvement in the companys earnings figures. Earnings
before interest and tax (EBIT) increased by 26.1 percent from EUR 41.0
million in the previous year to EUR 51.7 million in the reporting period.
The EBIT margin rose by just under one percentage point from the previous
years 9.3 percent to 10.2 percent, pushing into double-digit territory for
the first time in the companys history. Earnings before interest, tax,
depreciation and amortisation (EBITDA) rose from the prior years EUR 49.3
million to EUR 62.1 million reflecting a 26.0 percent increase. Earnings
before tax (EBT) came in at EUR 46.6 million, up 27.7 percent on the prior
years EUR 36.5 million. The respective margins reflected these
improvements. The profit for the year climbed 28.0 percent from the prior
years EUR 21.1 million to EUR 27.0 million. DVFA earnings per share rose
by EUR 0.26 to EUR 1.18. The return on equity based on the operating result
increased from 31.8 percent to 35.7 percent. The return on investment
improved from 17.1 percent to 19.0 percent. The clear earnings growth is
due to the optimised operational processes and the cost-efficient
procurement structures.
Having grown by EUR 59.2 million, brand sales were up 13.5 percent on the
previous year. Sales of the core brand, GERRY WEBER, one of the highest
profile brands in the German fashion retail sector, scoring name awareness
ratings of 72 percent among women aged 30 to 64, grew by 20.2 percent. The
core brands contribution to Group revenues rose from 66.6 percent to 69.9
percent, thereby consolidating its eminent importance for the company. 54.2
percent of the GERRY WEBER sales were generated in Germany. The share of
foreign sales increased to 45.8 percent. The sublabels made a sizeable
contribution to the core brands sales growth. The GERRY WEBER EDITION
single-item line achieved a 25.0 percent revenue increase and meanwhile
accounts for approximately 26.0 percent of the core brand sales.
TAIFUN-Collection, the younger label, incurred a slight revenue decrease by
1.0 percent. Its share in total sales stood at 21.9 percent.
SAMOON-Collection, the niche brand for plus sizes, achieved 1.5 percent
sales growth in fiscal 2006/2007 and generated 6.4 percent of total
revenues.
The sustained pace of sales growth recorded in recent years has mainly been
due to the GERRY WEBER Groups strong retail expansion. The Group has
evolved into a vertically integrated systems supplier and makes consistent
use of all market opportunities resulting from its distribution concept.
'Compared to the sector and our segment, our growth figures demonstrate
that our verticalisation has put us in a unique position in the market',
Gerhard Weber added. 'Our own retail activities have successfully
differentiated us from our competitors and given us an optimal position in
the marketplace.'
The Retail segment, which aggregates the sales of the 66 HOUSES OF GERRY
WEBER operated by the company in Germany, recorded a 49.3 percent increase
in sales to EUR 89.3 million compared to EUR 59.8 million in the previous
year. This expansion in GERRY WEBER Groups fastest growing segment
reflected both the opening of 16 company-managed HOUSES OF GERRY WEBER as
well as same store growth. The share of the Retail business in total
revenues rose to 17.6 percent. On 31 October 2007, a total of 177 HOUSES OF
GERRY WEBER were open for business worldwide, including 89 in Germany.
In addition to pushing ahead its own retail business, the GERRY WEBER Group
also continued to expand its cooperation with retailers through the
installation of 327 new shop-in-shop systems. During the reporting period
their number rose to 1,198, including 948 in Germany and 250 abroad.
In fiscal 2006/2007, the GERRY WEBER Group expanded both in Germany and
abroad. The export share climbed from 41.8 percent to 44.8 percent. The
Netherlands, Scandinavia, UK/Ireland, Austria, Belgium and Switzerland were
the most important export markets.
The fast pace of growth in the companys business was also reflected in its
headcount. A total of 137 new jobs, including 61 in Germany, was created
across the Group during fiscal 2006/2007. The number of employees rose from
1,881 in the previous year to 2,018 as of the balance sheet date.
The GERRY WEBER Group will continue its expansion strategy in the current
year and open another 90 HOUSES OF GERRY WEBER. Half of the new multibrand
stores will be operated by the company and the other half will be
franchised. Approximately 30 percent of all franchised HOUSES OF GERRY
WEBER are opened abroad. The company plans to open some 70 HOUSES OF GERRY
WEBER in each of the following four years.
The current financial year will see the companys alliances with retailers
being intensified through the opening of another 400 shop-in-shop outlets,
one third of which will be located in Germany. Retailers are increasingly
looking for strong partners assuming store and inventory management
functions. The GERRY WEBER Group will exploit this trend with a view to
strengthening its market position vis-à-vis the retail sector.
The GERRY WEBER Group will move forward with the optimisation of its
procurement and logistics structures in order to further improve its
margins. Production in Eastern Europe and in China will be shifted to more
competitive countries and regions, respectively, in order to benefit from
wage cost differences.
Targeting sales of EUR 575 million in fiscal 2007/2008, the GERRY WEBER
Group is working towards another double-digit increase in total revenues.
'The 14.7 percent rise in incoming orders demonstrates that we are well
positioned to attain this goal', Gerhard Weber concluded. The company also
intends to grow its earnings and to boost its EBIT margin to 11 percent.
Over the subsequent five years, sales are to double to EUR 1 billion, with
the EBIT margin rising to 15 percent, which would be clearly above todays
level.
Key figures of the GERRY WEBER Group:<pre>
in m (to IFRS) 31 Oct. 2007 31 Oct. 2006
Sales 507.1 442.8
EBITDA 62.1 49.3
EBITDA margin 12.2% 11.1%
EBIT 51.7 41.0
EBIT margin 10.2% 9.3%
Net income for the year 27.0 21.1
DVFA earnings per share in 1.18 0.92
Gross cash flow 57.0 44.9
Capital expenditure 19.1 20.5
Employees on 31 October 2,018 1,881</pre>
Investor Relations contact:
Hans-Dieter Kley
Tel.: +49 (0) 52 01 185-0
E-mail: b.uhlenbusch@gerryweber.de
www.gerryweber-ag.de
DGAP 27.02.2008
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Language: English
Issuer: Gerry Weber International AG
Neulehenstraße 8
33790 Halle/Westfalen
Deutschland
Phone: +49 (0)5201 185-0
Fax: +49 (0)5201 5857
E-mail: h.kley@gerryweber.de
Internet: www.gerryweber-ag.de
ISIN: DE0003304101
WKN: 330410
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf;
Freiverkehr in Berlin, Stuttgart
End of News DGAP News-Service
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DGAP-News: GERRY WEBER remained in the fast lane also in fiscal year 2006/2007
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