DGAP-Ad-hoc: Gerry Weber International AG / Key word(s): Forecast
Ad-hoc announcement pursuant to section 17 MAR
GERRY WEBER decides to implement new Performance Programme and updates the forecast for 2017/18 to reflect the program's effects on revenues and earnings
(Halle/Westphalia, 13 June 2018) The Supervisory Board of GERRY WEBER International AG today approved the programme of measures developed to achieve a sustainable increase in profitability. On 21 February 2018, GERRY WEBER International AG had already announced the development of this comprehensive Performance Programme. The measures that are associated with this programme and have now been adopted will change the company's business model; more specifically, they are designed to match the flow of merchandise more effectively to actual requirements, to streamline structures and to focus the organisation on its core competencies. In the current financial year 2017/18, these measures will lead to higher-than-expected extraordinary charges of roughly EUR 15 million and to a shift in revenues to the next financial year. Moreover, sales revenues in the GERRY WEBER Retail segment will be slightly lower than expected in the current financial year.
Against this background, the Managing Board of GERRY WEBER International AG has revised the forecast for the financial year 2017/18. The company now projects revenues of EUR 830 million to EUR 840 million (previously EUR 870 million to EUR 890 million) and consolidated earnings before interest and taxes (EBIT) of EUR -10 million to EUR 0 (previously EUR 10 million to EUR 20 million) million for the current financial year.
Based on the Performance Programme, the company aims to increase its sales revenues significantly and more strongly than the market in the next three to five years and to save total costs in the medium double-digit million range. As a result, the company anticipates to generate additional potential of up to EUR 35-40 million p.a. for its operating result (EBIT) within the next three to five years.
The Managing Board will disclose further details of the Performance Programme and the forecast for the financial year in the report on the first six months of 2017/18.
Admitted to the Regulated Market of the Frankfurt Stock Exchange (Prime Standard)
13-Jun-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||Gerry Weber International AG|
|Phone:||+49 (0)5201 185-0|
|Fax:||+49 (0)5201 5857|
|Listed:||Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Stuttgart, Tradegate Exchange|
|End of Announcement||DGAP News Service|
695217 13-Jun-2018 CET/CEST