Gerry Weber International AG / Key word(s): Preliminary Results 29.01.2015 07:24 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad-hoc announcement pursuant to § 15 WpHG GERRY WEBER International AG successfully increases profitability in FY 2013/14 and posts EBIT margin of 12.8% - At EUR 852.1 million, sales revenues remain stable compared to previous year in spite of challenging market conditions - EBITDA margin climbs from 15.0% in previous year to 15.7% in financial year 2013/14 - Consistent internationalisation and vertical integration of the business model (Halle/Westphalia, 29 January 2015) According to preliminary figures, GERRY WEBER International AG generated sales revenues of EUR 852.1 million and earnings before interest and taxes (EBIT) of EUR 108.9 million in the financial year 2013/14 (1 November 2013 - 31 October 2014). As already announced in November 2014, this means that the company did not quite reach the targets it had set itself. At EUR 852.1 million, sales revenues remained almost unchanged from the previous year's EUR 852.0 million. This was primarily due to the lower-than-expected revenues of the Wholesale segment as well as the challenging market conditions for the own retail business especially during the fourth quarter of the financial year. The Retail segment, which is the company's strategic growth driver, reported an impressive 11.3% increase in sales revenues to EUR 404.9 million. This growth is attributable not only to the newly opened stores but also to a 1.9% increase in domestic like-for-like sales. That means that the GERRY WEBER Group showed a much better performance than the German fashion market as a whole, which reported a decline in sales of approx. 3% for the calendar year 2014 compared to the previous year. Just like the previous year, 2014 was not a good year for the fashion industry in Germany and Europe. Too much rain in the summer, mild temperatures in the autumn and winter as well as difficult economic conditions in some parts of Europe had an equally adverse impact on sales as the uncertainty among consumers, which was additionally fuelled by the geopolitical crises, e.g. in Russia. Against this background, the Wholesale segment - unlike our own Retail stores - was unable to meet our sales expectations. Although the sales performance was not entirely satisfactory, the GERRY WEBER Group was able to improve its profitability as desired. In particular, the gross margin improved notably from 53.7% in the previous year to 57.4%. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 5.3% from EUR 127.4 million to EUR 134.2 million, which corresponds to an increase of the EBITDA margin from 15.0% to 15.7% Earnings before interest and taxes (EBIT) climbed 2.9% to EUR 108.9 million in spite of increased depreciation and amortisation (EUR 25.3 million). Accordingly, the EBIT margin rose from 12.4% to 12.8%. This improved profitability is due not only to strict cost management but above all to the higher revenue contribution made by the Retail segment, which increased from 42.7% in the previous year 47.5% in the financial year 2013/14. This means that the aim to increase the Retail segment's share in total sales revenues to approx. 50% was missed only by a narrow margin. Just like the previous years, the past financial year 2013/14 was primarily marked by the internationalisation of the business model and the expansion of the company's own Retail operations. The takeover of 25 stores in Norway, which now form part of the Retail segment, highlights the successful implementation of our objective to expand our own sales space in Scandinavia. The total number of company-managed Retail stores rose from 701 to 778 in the financial year 2013/14, which means that we reached our target of a 10% increase in the number of company-managed outlets. Both the acquisition of the Norwegian stores and the continuous expansion through the opening of new Retail sales areas confirms the strategy of the GERRY WEBER Group to expand its own Retail operations in selected European core markets. The final figures for the financial year 2013/14 will be presented by the management on the Annual Results Press Conference on 26 February 2015 in Dusseldorf. Moreover, we expect to present the guidance for the current financial year 2014/15 (1 November 2014 - 31 October 2015) including the HALLHUBER contribution on the Annual Results Press Conference. The acquisition of the fashion company HALLHUBER is still subject to approval by the cartel authorities in Germany and Austria. Admitted to the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) ISIN: DE0003304101 WKN: 330410 <pre> GERRY WEBER International AG </pre> Investor Relations Contact Claudia Kellert Tel: +49 (0)5201 185 8422 Email: c.kellert@gerryweber.de <pre> Corporate Communications Contact Catharina Berndt Tel: +49 (0)5201 185 320 Email: c.berndt@gerryweber.com </pre> 29.01.2015 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Gerry Weber International AG NeulehenstraÃe 8 33790 Halle/Westfalen Germany Phone: +49 (0)5201 185-0 Fax: +49 (0)5201 5857 E-mail: c.kellert@gerryweber.de Internet: www.gerryweber-ag.de ISIN: DE0003304101 WKN: 330410 Indices: MDAX Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard); Freiverkehr in Berlin, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Gerry Weber International AG successfully increases profitability in FY 2013/14 and posts EBIT margin of 12.8%
| Source: EQS Group AG