DGAP-Adhoc: Poor weather conditions make start of GERRY WEBER's newly opened stores difficult

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

13.09.2013 07:27

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

Poor weather conditions make start of GERRY WEBER's newly opened stores
difficult

- Business performance remains below expectations although sales revenues
climb 6.9% in the first nine months of 2012/13

- Following 230 store openings in the previous financial year, 42 stores
more were opened in the first nine months of 2012/13.

- Short-term forecast for the current financial year updated

(Halle/Westphalia, 13 September 2013) Sales revenues for the first nine
months of the 2012/13 financial year totalled EUR 592.8 million (9M
2011/12: EUR 554.4 million), an increase by 6.9% in year-on-year terms.
This revenue growth is mainly attributable to the expansion of the
company's own Retail space.

Our business model was adversely affected by poor weather conditions
primarily between November 2012 and April 2013. The mild winter made it
difficult to sell autumn/winter apparel and was followed by a virtually
unprecedented cold spell in the spring, due to which sales of the summer
apparel started only in June and July. The weather improved in our third
quarter (May to July 2013) and sales revenues stabilised somewhat.

Earnings before interest and taxes

The ongoing expansion of GERRY WEBER International AG influenced the
Group's earnings position also in the third quarter of 2012/13. Newly
opened stores generally make a lower contribution to the company's profits
in the first few months after their opening. As our newly opened stores
started in the difficult market environment described above, their sales
revenues are growing more slowly and were unable to make the planned profit
contribution. Following 230 store openings in the previous financial year,
42 stores more were opened in the first nine months of 2012/13. The
majority of the newly opened 230 stores of the last year are mono-label
stores of TAIFUN and SAMOON. Due to the smaller size of the stores and the
lower brand awareness of the two brands the mono-label stores principally
show a slower rate of growth.

Due to the lower-than-expected sales revenues, the ongoing continuation of
our Retail expansion and the related higher personnel and rental expenses,
earnings before interest and taxes (EBIT) declined in the first nine months
of 2012/13 compared to the previous year from EUR 66.7 million to EUR 60.7
million.

Net income after taxes for the first nine months amounted to EUR 40.8
million (9M 2011/12: EUR 44.5 million), resulting in somewhat lower
earnings per share of EUR 0.89 (9M 2011/12: EUR 0.97/share).

Updated forecast for 2012/13

After years of above-average growth in the past financial years we slightly
reduced our short-term growth targets for the year 2012/13 in response to
the adverse weather conditions affecting the environment in which we
operate. The target set for the financial year ending 31 October 2013 is
now to increase Group sales revenues by 6% to 7% on the previous year. This
would be equivalent to revenues of around EUR 850 million. Revenues would
still be some EUR 50 million higher than the year before. Against the
background of these revenues, we assume that earnings before interest and
taxes will come around EUR 105 million.

As already pointed out, the GERRY WEBER business model continues to be
geared to profitable and sustainable growth. However, we continue to
anticipate dynamic and profitable growth for our company moving forward.

Figures of the GERRY WEBER Group for the first nine months of 2012/13

9M 2012/ 9M 2011/ Q3 2012/ Q3
13 12 13 2011/12

Sales revenues (in EUR m) 592.8 554.4 189.0 178.4

EBIT (in EUR m) 60.7 66.7 17.4 19.7

EBIT margin in % 10.2 % 12.0 % 9.2 % 11.0 %

Net income for the period (in 40.8 44.5 11.5 12.8
EUR m)

Earnings per share (in Euro) 0.89 0.97 0.25 0.28

Equity ratio (in %) 77.4 % 77.0 % 77.4 % 77.0 %

Headcount (as at 31 July) 4,723 4,283 4,723 4,283

Forecast of GERRY WEBER International AG

Updated forecast for Forecast for 2012/13 from June
2012/13 2013

Sales revenues (in around 850 860 - 870
EUR m)

EBIT (in EUR m) around 105 approx. 120

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

Investor Relations Contact
GERRY WEBER International AG
Neulehenstraße 8
D - 33790 Halle/Westphalia
Phone: +49 (0)5201 185 8422
Email_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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