×
59 743
Fashion Jobs
OLD NAVY
Asset Protection Agent - Laguna Gateway Cntr
Permanent · Elk Grove
OLD NAVY
General Manager - Ward Parkway
Permanent · Kansas City
OLD NAVY
Asset Protection Service Representative - South Colorado Blvd
Permanent · Denver
JORDAN
Jordan Brand Marketing Manager
Permanent · New York
NIKE
Purpose Marketing, Global Brand Manager
Permanent · Beaverton
JORDAN
Jordan Brand Planning Manager
Permanent · Indianapolis
NIKE
Merchandising Manager
Permanent · Beaverton
NIKE
Materials Optimization Manager
Permanent · Beaverton
NIKE
Creative Operations Production Manager
Permanent · Los Angeles
NIKE
Global Director, Finance & Strategy Communications
Permanent · Beaverton
NIKE
Senior Construction Project Manager
Permanent · Beaverton
ABERCROMBIE AND FITCH CO.
Category Planner - Merchandise Planning
Permanent · Columbus
ABERCROMBIE AND FITCH CO.
sr. Category Planner - Merchandise Planning
Permanent · Columbus
ABERCROMBIE AND FITCH CO.
Inventory Planner - Merchandise Planning
Permanent · Columbus
NEIMAN MARCUS
Product Manager, bi & Analytics
Permanent · Irving
NEIMAN MARCUS
Manager, Sales Experience - Beverly Hills
Permanent · Beverly Hills
NEIMAN MARCUS
Sales Manager, Precious Jewelry-Palo Alto
Permanent · Palo Alto
ULTA BEAUTY, INC.
Retail Sales Manager
Permanent · Aurora
ULTA BEAUTY, INC.
co - Sales Manager
Permanent · Oklahoma City
ULTA BEAUTY, INC.
Retail Operations Manager
Permanent · Newark
SALLY BEAUTY CORPORATE
Outside Sales Representative -Cosmoprof
Permanent · Jackson
NEW BALANCE
Product Manager, Made
Permanent · Lawrence
Published
Mar 16, 2017
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Gerry Weber hails Q1 turnaround progress but still has lots of work to do

Published
Mar 16, 2017

Gerry Weber International has had a bruising time in recent periods but there seems to be light at the end of the tunnel as the firm recovers on the back of a carefully controlled turnaround strategy.


Gerry Weber is recovering but times are still tough



But that does not yet mean sales and profits rises all round. The German fashion giant is one of the country’s biggest listed fashion firms and reported flat net earnings. It made only €1.2m, or €0.03 per share, in Q1, the same as a last year’s first quarter. And its sales were down 2.1% to €209.2m. Sales at core brands Gerry Weber, Taifun and Samoon were down an even worse 2.4% and comp sales fell 3.4%.

So why did the company’s share rise over 5% Thursday morning? Well, the sales fall was explained by it having fewer stores rather than falling demand for the brands as a whole. And the key profits figure for earnings before interest, tax, depreciation and amortisation (Ebitda) was up an encouraging up 7.7% to €15.6m, while its Ebit figure rose 5.1% to €4.1m.

That is a clear sign of a company on the comeback trail.

Highlights included the Gerry Weber brand’s core wholesale segment seeing sales up 11.1% (partly due to delivery date shifts), and margin improvements at Hallhuber. It was able to improve its gross margin significantly from 58.9% to 64.5% “due to a better price structure”.

CEO Ralf Weber hailed the first three months of the financial year as one in which its ‘Fit4Growth’ turnaround programme  “is effective and is beginning to bear fruit.”

He said that the strategy is helping to modernise the core brands and is boosting their cost structure.

But he stressed that the firm “must now continue to implement the realignment with great determination in order to return to profitable growth after the stabilisation phase.”

Not that he expects any instant improvement on the sales front. He predicted that full-year sales would fall anywhere between 2% and 4%.

Copyright © 2021 FashionNetwork.com All rights reserved.