DGAP-News: Gerry Weber International AG publishes preliminary results for financial year 2017/18

Corporate News

GERRY WEBER International AG publishes preliminary results for financial year 2017/18

- Expected significant loss in EBIT of EUR 15.5 million before extraordinary effects

- Structural and balance sheet adjustments provide flexibility and foundation for repositioning of GERRY WEBER

(Halle/Westphalia, 7.12.2018) After a first review, the Executive Board of GERRY WEBER International AG published the preliminary results for the financial year 2017/18 (October 31), today. According to the first review, group sales reached about EUR 795 million in the financial year 2017/18. Consequently, sales were slightly above the most recent prognosis of EUR 790 million and about 10% below the previous year of EUR 880.9 million. The Group's operating result before interest and taxes (EBIT), excluding non-cash provisions for restructuring measures, extraordinary depreciation and write-downs as well as consulting costs shows the anticipated significant loss of EUR 15.5 million (previous year: EUR +19.9 million). Overall, as expected and announced, EBIT was impacted by non-cash provisions for restructuring measures and consulting costs of EUR 63.3 million, as well as extraordinary depreciation and write-downs of EUR 69.3 million, resulting in a loss of EUR 148.1 million (previous year: EUR +10.3 million).

"We cannot be satisfied with the developments of the past financial year. This however comes not as a surprise," comments Johannes Ehling, Spokesman of the Executive Board of GERRY WEBER International AG. "Now however, we clearly focus our attention and efforts on the future, vigorously implementing our Future Concept to reposition GERRY WEBER in the market", Johannes Ehling continues. "According to the preliminary results, our Annual Financial Statement for the past financial year will be shaped by major structural and balance sheet adjustments. With these adjustments, we gain the necessary flexibility and lay a sustainable foundation for regaining the company's former strength", added Florian Frank, Member of the Executive Board and Chief Restructuring Officer (CRO). "Precondition to this is the conclusion of a sustainable financing concept by the end of January 2019. In light of the constructive ongoing discussions with all debt and major equity holders we are confident in our ability to successfully conclude the financing concept", Florian Frank continues.

Key measures of the Future Concept, which will primarily shape the final Annual Financial Statement 2017/18, are among others:

- Closure of around 230 retail spaces, as well as

- corresponding significant reduction of workforce, both nationally and internationally, including positions in our stores and retail spaces, as well as in centralized functions including logistics.

The GERRY WEBER International AG Managing Board has entered negotiations with the employee representatives about the extent of staff-related measures, as well as with the lessors of stores about the premature termination of rental contracts. All negotiations are pursued with greatest possible urgency and in a constructive climate of mutual trust and respect.

All provided figures are preliminary. GERRY WEBER International AG plans to publish the Annual Financial Statement 2017/18, as previously announced, on 28 February 2019, as well as to continue to inform about the progress of the ongoing transformation and restructuring in due time.

About the GERRY WEBER Group

GERRY WEBER International AG, headquartered in Halle/Westphalia, operates on a global scale and unites five strong fashion brands under one roof: GERRY WEBER, TAIFUN, SAMOON, talkabout and HALLHUBER. Since its beginning in 1973 GERRY WEBER International AG, which is listed in the Prime Standard of the German Stock Exchange, has become one of the best known German fashion and lifestyle companies with approximately 1,230 company-managed stores and sales spaces (incl. 410 from HALLHUBER), approximately 2,480 shop-in-shops and 280 franchised stores worldwide as well as brand online-shops in nine countries. With some 6,500 employees worldwide (including about 2,000 from HALLHUBER) and distribution channels in roughly 60 countries, the GERRY WEBER Group is one of the largest listed fashion companies in Germany.

In the financial year 2016/17 (1 November 2016 to 31 October 2017) the GERRY WEBER Group generated sales revenues of EUR 880,9 million and operating income (EBIT) in the amount of EUR 10.3 million. The HALLHUBER subsidiary, which was acquired in February 2015, contributed EUR 194.3 million to GERRY WEBER Group sales.

GERRY WEBER International AG