DGAP-Adhoc: Gerry Weber International AG updates its short-term guidance

Gerry Weber International AG / Key word(s): Interim Report/Change in Forecast

14.06.2013 07:30

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Ad-hoc release pursuant to section 15 WpHG

GERRY WEBER updates its short-term guidance

- GERRY WEBER has not remained isolated from the poor weather conditions
affecting the fashion retail sector

- First-half 2012/13 sales up 7.4% year-on-year to EUR 403.9 million;
earnings before interest and taxes at EUR 43.4 million (HJ1 2011/12:
EUR 47.0 million)

- Company stands by its medium and long-term growth plans

(Halle/Westphalia, 14 June 2013) Having grown its sales by 12.0% in the
first quarter of 2012/13, GERRY WEBER International AG (WKN: 330410)
reports sales revenues in the second quarter (February - April 2013) up
3.8% year-on year to EUR 219.0 million (Q2 2011/12: EUR 211.0 million).
This sales growth was mainly driven by the expansion of the company's own
retail spaces in Germany and abroad. A total of approximately 230
company-managed stores were opened in fiscal 2011/12 alone. In the first
six month of the current fiscal year 39 new stores were opened.

During the first half of the financial year 2012/13, the GERRY WEBER Group
generated sales of EUR 403.9 million (H1 2011/12: EUR 376.0 million), an
increase by 7.4% in year-on-year terms.

The slower pace of sales growth is, in particular, due to the bad weather
conditions in Germany and across Europe. While the first quarter (November
2012 - January 2013) was impacted by the very mild winter which made it
difficult to sell winter merchandise, the months of February and March 2013
were affected by unusually low temperatures. The adverse and cold weather
conditions almost all across Europe clearly weighed on customer footfall in
city centres and stores, resulting in declining year-on-year like-for-like
sales.

Sales by segments

The effects of the weather-affected trading environment and the resulting
lower customer frequency had a direct impact on the GERRY WEBER Retail
business. Following on from a 36.1% rise in the first quarter of 2012/13,
sales growth slowed down to 17.4% in the second quarter. In absolute
figures, the Retail segment contributed EUR 80.9 million to sales revenues
in the second quarter of the current financial year (Q2 2011/12: EUR 69.2
million). As already pointed out above, the sales increase reported for the
two quarters is mainly due to the newly opened Houses of GERRY WEBER and
mono-label stores in Germany and abroad, i.e. to the expansion of own sales
floor space. Looking at the full first six months of 2012/13, Retail sales
revenues amounted to EUR 166.6 million, a year-on-year increase by 26.1%.

Almost the entire German fashion industry was effected by bad weather
conditions resulting in lower sales in comparison to last year. Also GERRY
WEBERs like-for-like sales decreased by 4.1% in H1 2012/13. While this
means that the GERRY WEBER Group performed better than the German fashion
sector as a whole, we were unable to isolate ourselves completely from this
trend.

The Production and Wholesale segment contributed EUR 237.3 million (H1
2011/12: EUR 244.0 million) or 58.8% to Group sales. It needs to be taken
into account that the Wholesale revenues for the first six months of the
previous year still included the revenues generated by the Dutch Houses of
GERRY WEBER which are meanwhile majority-owned by the GERRY WEBER Group. In
addition, sales in the first half of 2013 suffered from lower reordering by
wholesale customers during the period. Due to the selective distribution
strategy GERRY WEBER renounced sales to customers with a low
creditworthiness in order to minimise the exposure to debtor defaults.

EBIT performance

Against the background of the prolonged winter sales in January 2013 as
well as the lower sales than expected, particularly in the retail segment,
earnings before interest and taxes reduced from EUR 47.0 million to EUR
43.4 million in the first six months of 2012/13.

As a result of the effects of the ongoing Retail expansion as well as the
weather-related trading environment, the EBIT margin was down from 12.5% to
10.7% on the first six months of the prior year. Net income for the period
after taxes came in at EUR 29.3 million for the first six months of
2012/13, resulting in slightly lower earnings per share of EUR 0.64 (H1
2011/12: EUR 0.69/share).

2012/13 guidance update

In view of the weather-induced weakening during the first half of 2012/13
as well as the risk of continued poor weather conditions affecting the
trading environment in Europe, management has decided to adopt a more
prudent view of the short-term outlook for the financial year 2012/13.
Against this background GERRY WEBER International AG has updated its short
term targets. Having originally targeted a level of sales between EUR 890
and 900 million, we now expect sales in the current financial year to
amount between EUR 860 to 870 million in the current financial year. Lower
sales particularly on the Retail side as well as higher discounts due to
the prolonged winter sales have also prompted us to lower our EBIT
guidance. Having originally anticipated earnings before interest and taxes
of EUR 131 - 135 million, the company now expects to generate EBIT of
around EUR 120 million in what will remain a challenging market environment
during the full financial year 2012/13.

Notwithstanding the fact that we will for a short while not meet our
ambitious self-imposed targets for the financial year 2012/13, we continue
to anticipate dynamic and profitable growth for the GERRY WEBER Group
moving forward. Building on our unique brand positioning, our five strong
brands, our customer structure and, most of all, the growth opportunities
to be tapped in the international markets, the 'GERRY WEBER' business model
remains on a growth path. This is why we stand by our strategy geared to
profitable growth over the medium and long-term.

Key figures of the GERRY WEBER Group for H1 2012/13

H1 2012/ H12011/12 Q2 2012/ Q2 2011/
13 13 12

Sales revenues (in EUR millions) 403.9 376.0 219.0 211.0

EBIT (in EUR millions) 43.4 47.0 25.6 29.3

EBIT margin in % 10.7% 12.5% 11.7% 13.9%

Net income for the period 29.3 31.6 17.8 20.2
(in EUR millions)

Earnings per share (in EUR) 0.64 0.69 0.39 0.44

Equity ratio (in %) 80.7% 77.0% 80.7% 77.0%

Headcount (as of April 30,) 4,831 4,209 4,831 4,209

Forecast of GERRY WEBER International AG

Updated 2012/13 Original 2012/13
guidance guidance

Sales revenues (in EUR 860-870 890-900
millions)

EBIT (in EUR millions) around 120 131 - 135

Admitted to the Regulated Market of the Frankfurt Stock Exchange (Prime
Standard)
ISIN: DE0003304101
WKN: 330410

Investor Relations Contact
GERRY WEBER International AG
Claudia Kellert
Neulehenstraße 8
D - 33790 Halle/Westfalen
Tel.: +49 (0) 52 01-185 8422
E-mail: c.kellert@gerryweber.de

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Language: English
Company: Gerry Weber International AG
Neulehenstraße 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

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