DGAP-News

GERRY WEBER's realignment programme proceeding to plan in FY 2015/16 - Seite 3

The launch of the new talkabout brand exclusively for the Wholesale segment is another measure aimed at strengthening the Wholesale operations. The collections have been developed jointly with the Wholesale partners and were tested in 30 shop-in-shops in the past financial year 2015/16. Due to the positive feedback, the number of talkabout sales spaces will be increased to 120 to 150 shop-in-shops in the current financial year 2016/17.

'Modernise the brands'

The aim is to place a stronger focus on the brands and core products of the Group and to give the collections a modern, high-quality appeal. The value of the products has been increased with the help of special materials or high-quality details. The up-to-date and modern appeal of the collections is supported not only by the presentation at the point of sale but also by the revised visuals of the brand campaigns.

Outlook on 2016/17

As the market conditions remain challenging, customer footfall continues to decline and consumers' purchasing behaviour is changing, the realignment programme will be continued in the current financial year 2016/17, as the Managing Board had announced on the occasion of the launch of the programme. GERRY WEBER will continue to implement the FIT4GROWTH realignment programme with great determination and make adjustments where these may be required by the volatile market developments. The Managing Board projects the resulting special charges to amount to approx. EUR 6 million in the current financial year, compared to EUR 31.2 million in the previous year. Against this background, the Managing Board does not expect earnings to increase significantly in FY 2016/17 and projects consolidated EBIT of between EUR 10 and 20 million for the current financial year. Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA reported) is expected to come in at between EUR 60 and 70 million.

As a result of the store closures but also because of the continued difficult market environment, the Managing Board expects sales revenues in 2016/17 to decline by a moderate -2% to -4% compared to the previous year. As announced in February 2016, the GERRY WEBER Group expects to enter a phase of sustainable profitable growth in the third year following the start of the realignment exercise, i.e. in the financial year 2017/18.