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nine monThs reporT 2011/12
Inter Im report to the th Ird quarter 2011/12
REVIEW OF THE FIRST NINE MONTHS OF THE FINANCIAL YEAR 2011/12
At the nine-month stage of the current financial year, GERRY WEBER International AG is well on track
to reach the targets set for 2011/12. In view of the good business performance we slightly increase our
given sales target for the fiscal year 2011/12 from EUR 795 million to EUR 800 million. We will maintain
our EBIT margin guidance between 14.5% and 14.6% for the current financial year 2011/2012.
In contrast to the overall market trends in summer
2012, GERRY WEBER International AG showed
a positive performance also in the third quarter of
2011/12 (1 May 2012 – 31 July 2012). Sales
revenues for the third quarter increased by an
impressive 21.9% on the previous year. This is
mainly attributable to the conversion and re-
opening of the WISSMACH stores as well as the
newly opened Houses of GERRY WEBER. As
announced in the second quarter of 2011/12,
many of the WISSMACH stores acquired with
effect from 15 March 2012 were converted into
TAIFUN and SAMOON by GERRY WEBER
mono-label stores already between May and July
2012.
A look at the first nine months of the current
financial year shows that sales revenues were up
by 13.9% on the same period of the previous
year. The contribution made by the Retail
segment to total Group sales during the nine-
month period increased from 32.1% to 38.6%.
Sales revenues
Slightly increase of our given sales target from EUR 795 mn to EUR 800 mn (+13.8%)
EBIT margin
Increase EBIT margin to 14.5% - 14.6% (previous year: 14.2%)
Retail Open 75 company-managed Houses of GERRY WEBER
Conversion former WISSMACH stores till end of fiscal 2011/12
Wholesale Continue the international expansion strategy in the Wholesale segment
Online shops & licenses
Increase sales revenues from online activities by at least 15% and expand licensing activities
Sales up 13.9% on previous year to EUR 554.4 m
EBIT margin up by 30 basis points to 12.0%
56 new company-managed Houses of GERRY WEBER opened, thereof 26 outside Germany as well as 69 mono-label stores (former WISSMACH shops)
33 franchised Houses of GERRY WEBER opened, thereof 25 outside Germany. First shop-in-shops in the USA.
Sales revenues from online activities increase by 40% to EUR 12.2 million. New licensing agreements for lifestyle jewellery and footwear signed.
TARGET FOR FULL YEAR AFTER NINE MONTHS OF 2011/12
GERRY WEBER International AG Report of the first nine month 2011/12
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Sales of the WISSMACH merchandise taken
over with effect from 15 March 2012 contributed
about EUR 14.0 million to the Retail segment’s
sales revenues. Wholesale revenues climbed
from EUR 325.5 million to EUR 332.6 million
(+2.2%).
The inclusion of the former WISSMACH stores in
the consolidated financial statements of the
GERRY WEBER Group had an impact on the
figures for the third quarter 2011/12. On the one
hand, the remaining products of the WISSMACH
Group were sold in the acquired stores; on the
other hand, each store had to be closed for about
six weeks for the conversion.
As a result, increased expenses resulting from
the takeover, especially personnel expenses and
rents, contrasted with below-average revenues
from the acquired stores. The negative impact on
the operating income due to the named effects
amounted some EUR 1.0 million in Q3 2011/12.
Due to these extraordinary charges, the third-
quarter EBIT margin was down by a moderate 20
basis points on the previous year to 11.0%. In
absolute figures, however, earnings before
interest and taxes (EBIT) increased by a strong
20.2% to EUR 19.7 million (Q3 2010/11: EUR
16.4 million).
In spite of the extraordinary effects mentioned
above, the EBIT margin for the first nine months
of 2011/12 climbed from 11.7% to 12.0%.
GERRY WEBER International AG Report of the first nine month 2011/12
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Net income for the third quarter amounted to
EUR 12.8 million after taxes, which translates
into earnings per share of EUR 0.28 for Q3
2011/12. The GERRY WEBER Group’s net
income for the first nine months of the year
totalled EUR 44.5 million, which represents an
increase of 23.5% on the previous year.
Accordingly, earnings per share climbed from
EUR 0.78 to EUR 0.97 at the nine-month stage of
the current financial year.
In view of the good business performance we
slightly increase our given sales target for the
fiscal year 2011/12 from EUR 795 million to EUR
800 million. We will maintain our EBIT margin
guidance between 14.5% and 14.6% for the
current financial year 2011/2012.
* 9M 2011/12 inclusive Cash outflows for the acquisition of fully consolidated companies
(EUR 14.1 million)
GERRY WEBER International AG Report of the first nine month 2011/12
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COMPANY NEWS – INSIDE GERRY WEBER
“The opening of the GERRY WEBER Day Care Centre for employees’ kids is a demonstration of our social responsibility towards our staff,” Gerhard Weber, Chairman of the Managing Board.
Being an international fashion and lifestyle group
as well as an important employer in the region, it
goes without saying that we are committed to
responsible and sustainable corporate
governance. We take pleasure in informing you
about our latest project in this interim report.
Apart from promoting training and further
education measures, our human resources policy
also pursues the important goal of assisting
employees in balancing their working and family
lives. Flexible working hours and a variety of part-
time working schemes have formed part of the
working time models offered by GERRY WEBER
for many years. Since August 2012 our
employees are offered the possibility of putting
their children in the GERRY WEBER Day Care
Centre which is located close to their place of
work.
The GERRY WEBER Day Care Centre is part of
the company plant and comprises a net useful
area of some 3,500 square metres. A pre-existing
half-timbered house has been completely
refurbished and redesigned as a bright open-plan
space. This building houses the entrance area,
the administrative offices as well as the centre’s
modern kitchen. The adjoining newly built
complex is equally light flooded and comprises
six group rooms. The two interconnected
GERRY WEBER International AG Report of the first nine month 2011/12
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buildings are heated using geothermal energy,
just like the GERRY WEBER head office building.
This, too, demonstrates that the protection of the
environment is not merely a buzzword for us but
constitutes a firm element of our corporate
culture.
The generously laid out outdoor facilities of the
GERRY WEBER Day Care Centre offer a number
of genuine highlights including a playground, a
racetrack for the popular “Bobby Car“ ride-on
cars, a tree house and a children’s zoo. In
addition, a pre-existing barn has been converted
into an indoor adventure playground.
By creating this day care centre, the GERRY
WEBER Group not only demonstrates the family
focus of its human resources policy but also
improves the opportunities for many mothers
rejoining the workforce. In times of demographic
change and increasing competition for qualified
labour, the GERRY WEBER Group believes it is
well positioned for the future thanks to such
measures as the opening of a day care centre
close to parents’ place of work as well as the
company’s flexible working time models.
GERRY WEBER International AG Report of the first nine month 2011/12
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The GERRY WEBER SHARE The GERRY WEBER share showed a very
positive performance also in the third quarter of
2011/12, with a new all-time high of EUR 34.55
reached on 19 July 2012 The performance of the
share between May and July 2012 clearly reflects
its stability also in phases of increased market
volatility.
After the end of the financial year on 31 October
2011, the GERRY WEBER share gained 56.1%
and closed at EUR 33.48 (Xetra) on 31 July 2012.
By contrast, the MDAX share, in which the
GERRY WEBER share is listed, gained 24.0%
and closed at 10,826.26 points on 31 July 2012.
We clearly expanded our investor relations
activities, especially in the past nine months, and
presented the GERRY WEBER Group’s equity
story to both institutional investors and private
shareholders. The company participated in six
capital market conferences in Germany and
abroad and informed the financial community of
the Group’s performance on eight roadshow
days.
MDAX
GWI share
GERRY WEBER International AG Report of the first nine month 2011/12
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INTERIM GROUP MANAGEMENT REPORT for the first nine months of 2011/12
from 1 November 2011 to 31 July 2012
Sales revenues in the amount of EUR 554.4
million and EBIT of EUR 66.7 million mean that
we are well on track to reach the targets we have
set ourselves for the full year 2011/12 or
respectively exceed the given sales target slightly
from EUR 795 million to EUR 800 million.
Compared to the same period of the previous
year (1 November - 31 July), sales revenues
increased by 13.9% and net income by 23.5% to
EUR 44.5 million, which shows that our company
is clearly on the growth track.
Sales performance
Having climbed by 7.6% in Q1 and by 12.8% in
Q2, sales revenues increased by an impressive
21.9% on the previous year in the third quarter.
This is mainly attributable to the conversion and
re-opening of the WISSMACH stores and the
newly opened Houses of GERRY WEBER. As
announced at the time of the acquisition, many of
the WISSMACH stores taken over with effect
from 15 March 2012 were converted into TAIFUN
and SAMOON mono-label stores already
between May and July 2012.
Group sales revenues climbed from EUR 146.4
million in the third quarter of the previous year to
EUR 178.4 million in Q3 2011/12 (1 May – 31
July 2012).
Group sales revenues for the first nine months of
the current financial year (1 November 2011 – 31
July 2012) totalled EUR 554.4 million, up 13.9%
on the first nine months of the previous year. The
sharp increase in sales revenues is attributable,
among other things, to the revenues generated
by the Houses of GERRY WEBER opened in the
second half of 2011 and the first half of 2012 As
described above, the rise in sales revenues is
partly attributable to the conversion and re-
opening of 69 former WISSMACH stores.
Performance of the Retail segment
Reflecting the ongoing expansion, the Retail
segment’s sales revenues increased to EUR 82.5
million in the third quarter of the financial year
(Q3 2010/11: EUR 55.4 million). This represents
an increase of 48.9% on the third quarter of the
previous year.
Retail revenues in the first nine months increased
from EUR 156.0 million in the previous year to
EUR 214.3 million in the current financial year.
The 37.3% increase is mainly the result of the
consistent implementation of the segment’s
expansion strategy. Like-for-like sales for the
nine-month period increased by 3.9%. The
increase in sales revenues is also reflected in the
Retail segment’s share in total Group sales,
which rose from 31.0% end of last fiscal (as of 31
October 2011) to 38.6%. The mid- respectively
long-term target is a share of roughly 50%, i.e. a
balanced ratio between Retail and Wholesale
revenues.
A breakdown of the Retail sales by distribution
channels shows that the company-managed
Houses of GERRY WEBER and mono-label
stores contributed about 75% to the segment’s
total sales in the first nine months of 2011/12. Our
online shops also showed a positive
performance, contributing approx. EUR 12.2
million to sales. The online shops thus accounted
GERRY WEBER International AG Report of the first nine month 2011/12
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for 5.7% of total Retail revenues. The medium-
term target is to increase this share to about 10%.
Performance of the Wholesale segment
In Q3 2011/12, the Wholesale segment
generated sales revenues of EUR 93.7 million, up
5.3% on the previous year’s EUR 89.0 million.
Sales revenues in the Production and Wholesale
segment totalled EUR 332.6 million for the full
nine-month period, compared to EUR 325.5
million in 9M 2010/11.. In spite of the 2.2%
increase on the prior year, the Wholesale
segment’s contribution to total Group revenues
declined from 67.5% to 60.0% as of 31 July 2012.
The reduction is due to the above-average
increase in Retail revenues.
Distribution channels
56 new Houses of GERRY WEBER that are
managed by the company itself, i.e. belong to the
Retail segment, were opened in the first nine
months of the financial year, about half of which
are located outside Germany. As described
above, the number of mono-label stores
increased by 69 from 29 due to the conversion
and re-opening of the former WISSMACH stores.
As a result, there were a total of 362 own stores
(Houses of GERRY WEBER and mono-label
stores) as of the end of the reporting period.
In addition to these stores, new franchised
Houses of GERRY WEBER were opened, most
of them abroad. Their number increased by 33
over the past nine months, of which 25 were
opened outside Germany. This means that a total
of 285 Houses of GERRY WEBER were run by
franchisees as of the end of the reporting period
(31 July 2012).
GERRY WEBER International AG Report of the first nine month 2011/12
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The number of shop-in-shops increased by 277 to
2,569 in the first nine months of the current
financial year.
Brand revenues
The non-consolidated domestic revenues of the
GERRY WEBER, GERRY WEBER EDITION,
G.W. as well as TAIFUN and SAMOON brands
totalled EUR 442.2 million in the first nine months
of 2011/12, up 11.7% on the same period of the
previous year (EUR 395.8 million). Domestic
brand revenues comprise the revenues
generated by our brand companies through sales
to our wholesale customers and the GERRY
WEBER Retail segment.
The GERRY WEBER core brand and its two
sublabels, GERRY WEBER EDITION and G.W.,
accounted for approx. 77.9% of the total brand
revenues in the first nine months of the current
financial year (9M 2010/11: 78.9%). The GERRY
WEBER brands including GERRY WEBER
EDITION and G.W. contributed an amount of
EUR 344.6 million
Our second largest brand, TAIFUN, showed a
particularly positive performance, boosting its
contribution to total brand revenues from 16.1%
in the prior-year period ended 31 July to 17.3%.
In the first nine months of the current financial
year, the TAIFUN brand generated sales
revenues of EUR 76.4 million (9M 2010/11: EUR
63.8 million). This gratifying 19.7% increase
confirms our belief that the TAIFUN brand has
great potential. To live up to this positive market
estimate and the growing demand, we will
convert some 120 of the WISSMACH stores
acquired in March 2012 into TAIFUN mono-label
stores. As the conversion has already started, we
were able to open as many as 65 TAIFUN mono-
label stores between May and July 2012.
Our brand portfolio is complemented by the
SAMOON brand, which accounted for about 4.8%
of the total brand revenues in the first nine
months of 2011/12. The brand for plus sizes
generated revenues of EUR 21.2 million, up 7.6%
on the previous year.
GERRY WEBER International AG Report of the first nine month 2011/12
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A breakdown of the consolidated nine-month
revenues by regions shows that Germany
accounted for EUR 370.1 million or 66.7%,
compared to 64.5% in the same period of the
previous year. The growth in domestic revenues
is not least attributable to the above-mentioned
acquisition of the WISSMACH stores in Germany
and the newly opened Houses of GERRY
WEBER.
The international markets contributed EUR 184.4
million to total Group revenues. In the coming
months, we will continue to grow, both by opening
new company-managed stores and by expanding
our network of franchised stores.
Earnings position
Q3 2011/12
Although business slackened in the summer for
weather-related reasons, the GERRY WEBER
Group increased its Group sales by 21.9% to
EUR 178.4 million in the third quarter. Net income
for the period increased in sync by 21.9% to EUR
12.8 million (Q3 2010/11: EUR 10.5 million).
As a result of the increase in sales revenues,
especially in the Retail segment, changes in
inventories and the cost of materials increased to
EUR 40.4 million and EUR 119.7 million,
respectively, in the third quarter. The cost of
materials as a percentage of sales stood at
54.7% in the third quarter of 2011/12, compared
to 55.0% in the same period of the previous year.
Accordingly, the gross profit margin improved
slightly from 45.0% to 45.3%.
The extraordinary effects of the third quarter are
also reflected in the expense items. Personnel
expenses as a percentage of sales increased
from 17.8% in the previous year to 18.7%,
primarily due to the former WISSMACH
employees. On a quarterly basis, the headcount
increased from 2,927 to 4,283 as of 31 July 2012.
Other operating expenses also picked up, namely
from EUR 26.1 million in Q3 2010/11 to EUR 45.3
million in Q3 2011/12. The increase is primarily
attributable to higher rental expenses resulting
from the takeover of the WISSMACH stores and
the leases signed for the new company-managed
Houses of GERRY WEBER.
Depreciation and amortisation in Q3 2011/12
totalled EUR 4.7 million (Q3 2010/11: EUR 3.0
million) due to increased depreciation of
furnitures and fixtures, e.g. for the new mono-
label stores.
Earnings before interest and taxes (EBIT) rose
sharply from EUR 16.4 million to EUR 19.7 million
in spite of the extraordinary charges resulting
from the expansion of the Retail segment; this
represents an increase of 20.2% on the prior year
quarter. The EBIT margin declined slightly from
11.2% in the third quarter of the previous year to
11.0%.
GERRY WEBER International AG Report of the first nine month 2011/12
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The GERRY WEBER Group’s net income for the
period after interest (EUR -0.4 million) and
income taxes (EUR -6.5 million) amounted to
EUR 12.8 million in the third quarter of the
financial year. This represents an increase by
21.9% compared to the previous year.
Nine months (9M) 2011/2012
Group sales revenues for the first nine months
increased by 13.9% on the same period of the
previous year, which is in line with our targets.
With sales revenues totalling EUR 554.4 million
at the nine-month stage and a seasonally strong
fourth quarter ahead of us, we are well on track to
meet or respectively slightly to exceed our sales
target for the full year.
As outlined above, changes in inventories (EUR
33.6 million) and the cost of materials (EUR 297.9
million) increased on the previous year due to the
expansion of the Retail operations. Against the
background of further improved procurement
processes and volume effects, the gross profit
margin improved from 46.9% to 49.3%, with the
changes in inventories reflected in the calculation
of gross profit.
For the reasons outlined above, personnel
expenses increased at a disproportionate rate
from EUR 75.4 million to EUR 90.9 million. As a
result of the expansion of the Retail activities,
personnel expenses as a percentage of Group
sales climbed from 15.5% to 16.4%.
Against the background of the acquisition of the
WISSMACH stores, the leases signed for the new
company-managed Houses of GERRY WEBER
and higher costs resulting from the increase in
sales revenues, other operating expenses also
increased at a higher rate than sales, namely
from EUR 107.0 million to EUR 129.8 million.
Taking into account increased
depreciation/amortisation in the amount of EUR
12.8 million. (9M 2010/11: EUR 8.8 million), e.g.
of the store fittings, earnings before interest and
taxes (EBIT) for the first nine months of 2011/12
were up by a strong 17.0% on the previous year
to EUR 66.7 million. At 12.0%, the EBIT margin
for the nine-month period exceeded the prior
year’s margin by 30 basis points. The increase in
the EBIT margin is all the more impressive
against the background of the extraordinary
effects resulting from the takeover of the former
WISSMACH stores, their conversion into mono-
label stores and the opening of new Houses of
GERRY WEBER.
As both the WISSMACH acquisition and all other
necessary investments were financed from
GERRY WEBER International AG’s own funds,
the financial result improved by a moderate 6.6%
to EUR 1.4 million.
GERRY WEBER International AG Report of the first nine month 2011/12
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Net income for the nine-month period after
income taxes amounted to EUR 44.5 million,
which represents a 23.5% increase on the
previous year.
Accordingly, earnings per share climbed from
EUR 0.78 to EUR 0.97.
Net worth position
Total assets declined from EUR 450.1 million as
of 30 April 2012 (end of Q2 2011/12) million to
EUR 429.4 million primarily to the outflow of cash
and the resulting reduction in liquid funds. Liquid
funds were used mainly for the acquisitions and
investments as well as for the dividend payment.
At EUR 198.1 million, fixed assets were up on
both the end of the financial year (EUR 160.2
million) and the first half of 2011/12 (EUR 186.2
million). The 23.7% increase is primarily
attributable to additions to property, plant and
equipment. Besides land and buildings, this item
also includes the shop fittings of our own stores.
As a result of the opening of new company-
managed Houses of GERRY WEBER, property,
plant and equipment increased by EUR 20.7
million compared to the end of fiscal 2010/11 to
EUR 138.3 million on 31 July 2012. Intangible
assets climbed EUR 11.1 million to EUR 30.4
million. The increase is primarily attributable to
the rights to enter into existing leases acquired in
the context of the DON GIL and WISSMACH
acquisitions.
Investment properties comprise the carrying
amount of Hall 30 in Düsseldorf. The building
provides exhibition space for various fashion
companies and is fully let to external tenants.
Final construction measures, especially at the
beginning of the fiscal year, increased the
carrying amount of this building from EUR 21.2
million to EUR 26.9 million at the end of the
reporting period.
Against the background of the expansion of the
Retail activities and the takeover of inventories in
the context of the WISSMACH transaction,
inventories increased sharply compared to the
end of the past financial year and the first half of
the current financial year from EUR 88.5 million to
EUR 121.4 million. In this context, it should be
noted that new TAIFUN and SAMOON mono-
label stores are being opened every week, which
need to be stocked with merchandise.
Other current assets rose from EUR 11.9 million
to EUR 26.9 million in the first nine months of
2011/12. This is primarily attributable to higher
VAT refund claims.
Liquid funds declined from EUR 90.6 million at
the end of the financial year 2010/11 to EUR 23.1
million on the reporting date on 31 July 2012,
which is primarily attributable to the takeover of
the former WISSMACH stores as well as to
increased investments in the expansion of our
own Retail activities and the payment of the
dividend. Also seasonal effects generally impact
liquid funds of Q3,e.g. the financing of parts of the
autumn/winter collection.
On the liabilities side of the balance sheet, equity
capital rose by EUR 16.7 million to EUR 330.6
million as of the nine-month stage. Accordingly,
the equity ratio improved to 77.0% (31 October
2011: 75.7%).
GERRY WEBER International AG Report of the first nine month 2011/12
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As in the previous quarters, non-current financial
liabilities were reduced, this time by EUR 4.6
million to EUR 10.6 million due to scheduled
repayments. By contrast, current financial
liabilities rose by EUR 10.0 million due to
seasonal factors. Current and non-current
provisions climbed by a moderate EUR 3.1 million
to EUR 29.7 million, which is primarily attributable
to an increase in other provisions.
The balance sheet structure for the full nine
months is still very solid as reflected in an equity
ratio of 77.0%, liquid funds of EUR 23.1 million
and financial liabilities of EUR 26.7 million.
Financial assets and investment
Against the background of the expansion of the
Retail operations, especially the opening of 125
new company-managed Houses of GERRY
WEBER / mono-label stores and the related
investments, the purchase price payments for the
DON GIL and WISSMACH acquisitions and the
profit distribution, liquid funds as of the end of the
reporting period (31 July 2012) were down by
EUR 62.8 million on the end of H1 2011/12 and
amounted EUR 23.1 million.
Although earnings before interest and taxes were
higher than in the first nine months of the
previous year, cash flow from operating activities
declined by a moderate 2.6% in Q3 2011/12 to
EUR 12.8 million. The fact that cash flow declined
moderately (EUR 0.3 million) in spite of a higher
operating result (EUR +9.7 million) is not least
attributable to an increase in inventories (EUR -
4.5 million) and other assets (EUR -5.3 million).
The outflow of cash from investing activities
increased sharply from EUR 28.0 million in the
first nine months of the previous year to EUR
54.4 million, also due to the expansion of our
business activities. The reasons for this increase
include, among others, higher investments in
property, plant and equipment as well as
intangible assets. These investments climbed
from EUR 16.6 million to EUR 33.9 million.
Comprehensive investments were required, in
particular, in conjunction with the opening of 125
new company-managed Houses of GERRY
WEBER and mono-label stores. The purchase
price for the former WISSMACH stores and their
inventories as well as the acquired DON GIL
outlets led to a EUR 14.1 million increase in cash
outflows from investing activities.
Cash outflows from financing activities totalled to
EUR 24.5 million in the first nine months of
2011/12 and included the scheduled repayment
of financial loans (EUR 5.4 million) as well as the
GERRY WEBER International AG Report of the first nine month 2011/12
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dividend payment of EUR 29.8 million. The first
nine months of the previous year were influenced
by the sale of own shares, which resulted in an
inflow of cash of EUR 21.0 million in spite of the
dividend payment of EUR 25.2 million.
Due to the outflow of cash from investing and
financing activities of EUR 54.4 million and EUR
24.5 million, respectively, cash and cash
equivalents declined by EUR 67.5 million. Cash
and cash equivalents consequently amounted to
EUR 23.1 million as of the end of the period (31
July 2012).
Segment report
GERRY WEBER International AG defines its
segments in accordance with its internal
organisational and reporting structures. A
distinction is thus made between “Production and
Wholesale of Ladieswear”, “Retail of Ladieswear”
and “Other Segments”. The “Production and
Wholesale“ segment comprises all collection
development activities, procurement, transport
and logistics as well as wholesale distribution.
The extraordinary effects of Q3 2011/12
described above, e.g. the first full sets of
merchandise required for the new Houses of
GERRY WEBER and mono-label stores, the
personnel expenses and rents from the
WISSMACH takeover and the temporary closure
of the former WISSMACH stores for conversion
into mono-label stores, had a disproportionately
adverse effect on the Retail Segment.
Although 43 new company-managed Houses of
GERRY WEBER were opened, the Retail
segment generated earnings before taxes of EUR
6.2 million in the first half of 2011/12. In the third
quarter of the current financial year, the Retail
segment was adversely affected by extraordinary
effects, which resulted in the first negative pre-tax
result in an amount of EUR 1.1 million.
Sales revenues in the Retail segment increased
disproportionately from EUR 55.4 million in the
third quarter of the previous year to EUR 82.5
million. This 48.9% sales growth is attributable to
the following effects, among others:
- The Houses of GERRY WEBER opened in
the financial year 2010/11 and in the first half
of 2011/12 continuously increase their sales.
A House of GERRY WEBER typically
reaches its average sales volume after round
about 24 months.
- The TAIFUN and SAMOON mono-label
stores resulting from the conversion of the
former WISSMACH stores (69 between May
and July 2012) had to be fully stocked with
new merchandise.
GERRY WEBER International AG Report of the first nine month 2011/12
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- Revenues of EUR 14.0 million were
generated from the sale of the WISSMACH
merchandise taken over in the context of the
acquisition.
Between them, these effects led to above-
average sales growth in Q3 2011/12. On the
other hand, however, the Retail segment suffered
from disproportionate expense effects. The
WISSMACH employees as well as the rents for
the WISSMACH stores were fully reflected in
personnel and other operating expenses for the
first time in Q3 2011/12. In this context, it should
be noted that most of the former WISSMACH
stores had to be closed for six weeks for the
conversion and made no contribution to sales
during this time. The negative impact on the
operating income due to the named effects
amounted some EUR 1.0 million in Q3 2011/12.
The situation is similar with the newly opened
Houses of GERRY WEBER - as many as 56 in
the past nine months - which first make a below-
average sales contribution but already incur full
costs.
The Retail segment’s sales revenues for the first
nine months of the financial year increased by
37.3%. In spite of the extraordinary effects of the
third quarter outlined above and the cost of the
expansion, the Retail segment generated a
positive pre-tax result of EUR 5.1 million in the
nine-month period.
Due to the expansion strategy and the opening of
new company-managed stores, both the
segment’s assets and liabilities increased
markedly, namely by 70.0% and 102.5%,
respectively. The Retail segment’s headcount
climbed from 1,593 to 2,899.
In the third quarter of 2011/12, the Production
and Wholesale segment again benefited
moderately from the shift in delivery dates, on
which we reported in detail in the previous
quarters. We began to shift the dates of the
deliveries to our customers in the first quarter of
2011/12. The aim of these shifts is to move the
delivery date closer to the actual time of sale of
the products in the stores and shops. We are
constantly striving to improve our merchandising
processes and to optimise them for the benefit of
our distribution channels.
Due to the shift in delivery dates, first-quarter
revenues in the Wholesale segment were down
by a moderate EUR 2.1 million on the prior year
quarter. In the third quarter of 2011/12, the
segment’s revenues increased by EUR 4.7 million
or 5.3% to EUR 93.7 million, thus offsetting part
of the shift. By the end of the financial year
2011/12, the effects arising from the shift will
have been offset in full.
The Production and Wholesale segment’s sales
revenues for the full nine-month period increased
by 2.2% to EUR 332.6 million. Due to the
disproportionate rise in Retail revenues, the
Wholesale segment’s share in total Group
revenues declined from 66.9% on 31 July of the
previous year to 60.0%. Nevertheless, the
Wholesale segment still generates two thirds of
our sales revenues.
Due to the improvement in the cost of materials
as a percentage of sales and strict cost
management, earnings before taxes improved
GERRY WEBER International AG Report of the first nine month 2011/12
15
from EUR 42.2 million to EUR 58.3 million in the
first nine months of 2011/12 (+38.1%). At 815, the
number of employees was only slightly higher
than on 31 July of the previous year (790).
In the first nine months of the financial year, 33
franchised Houses of GERRY WEBER were
opened, 25 of which are located outside
Germany. We see further growth potential in our
existing foreign markets and will make entries into
new markets - such as in the USA at the
beginning of the financial year - together with
distribution partners.
The Other segment contributed EUR 7.5 million
(9M 2010/11: EUR 5.3 million) or 1.4% to total
Group sales. A total of 569 people were
employed in this segment as of 31 July 2012 (9M
2010/11: 544 people). Compared to the
expansion of the business activities of the
GERRY WEBER Group as a whole, this is a
relatively moderate increase.
OPPORTUNITY AND RISK REPORT
The GERRY WEBER Group generates
approximately 66.7% of its sales within Germany.
In spite of the ongoing debt crisis in Europe,
Germany continues to offer a positive
environment in terms of consumer spending.
According to the latest GfK consumer climate
index report released in August 2012, the index
has remained at a high level of 5.9 points even
though it has slightly weakened compared to the
prior month.
If the overall economic environment, and the debt
crisis in the euro area, in particular, remain in this
condition or deteriorate, this might cast a cloud
over consumer confidence in Germany as well as
depress consumer spending in several eurozone
countries even further.
We have a systematic risk management system
in place in order to track and assess our market
prospects in the individual sales countries on an
ongoing basis. This enables us to respond to
current developments as they occur and limit our
risk exposure accordingly. We also continue to
diversify our exposure to individual countries and
markets by expanding our sales activities in such
non-euro countries and regions as Russia and
the Middle East which are not, or only to a small
degree, affected by the European debt crisis.
For a detailed description of our risk management
system, the control systems for the accounting
processes and the opportunities and risks in the
GERRY WEBER Group, please refer to the risk
report in the 2010/11 Annual Report. The
statements made in this risk report remain valid.
GERRY WEBER International AG Report of the first nine month 2011/12
16
Since the beginning of the fiscal year 2011/12, no
material changes have occurred regarding the
risks to our company’s future. Based on current
knowledge, there are no risks that could
jeopardise the continued existence of the GERRY
WEBER Group.
POST-BALANCE SHEET EVENTS
Effective 1 August 2012 GERRY WEBER
International AG entered into an exclusive
licensing agreement with footwear manufacturer
JOSEF SEIBEL Schuhfabrik GmbH based in
Hauenstein, Germany. The licence covers the
production and worldwide distribution of a
GERRY WEBER-branded shoe collection. The
launch of the first shoe collection is planned for
the autumn/winter 2013 season.
GERRY WEBER International AG and its largest
Dutch franchise partner have signed an
agreement under which the former will acquire a
51 % stake in the local Houses of GERRY
WEBER as well as the concession shops owned
by the latter. As a result of this agreement, the
Group will be the majority owner of currently 25
Houses of GERRY WEBER as well as 15
concession shops in the Netherlands. The two
Dutch operating companies will be fully
consolidated in the consolidated accounts of the
GERRY WEBER Group and be accounted for as
part of the Retail segment. Under the agreement
signed, the GERRY WEBER Group will have a
right of first refusal on the remaining 49 % starting
2017.
FORECAST REPORT
The economic outlook for Europe remains
predominantly under the influence of the
implications of the government debt crisis in
several European countries. While the pace of
growth in Germany has slowed down, the
German economy still appears to be in a more
robust shape than many of its European
counterparts. Having expanded by 0.5% in the
first quarter of 2012, German GDP increased by
0.3% quarter-on-quarter during the second
quarter. The second quarter of 2012 also saw an
expansion in German economic output in year-
on-year terms.
On the consumption side of the national
accounts, private consumption rose by 0.4%
compared to the prior quarter and by 0.8%
compared to the same period of 2011. The rise in
consumer spending is particularly due to the 4%
rise in wages and salaries compared to the prior
year and the resulting 2.1% increase in available
household incomes.
During the first nine months of the current
financial year the GERRY WEBER Group
generated approximately EUR 370.1 million or
66.7% of its sales in Germany. After three
quarters of the current fiscal year export sales
amounted EUR 184.4 million.
Despite the growth reported for the German
economy during the first six months of the year,
the recession going on in some euro-zone
countries may still affect Germany after all. The
August 2012 GfK consumer climate study noted a
slight weakening of consumer sentiment in
Germany. As consumers take a more pessimist
view of the economic outlook, this might also
affect consumers’ income expectations and
consequently their propensity to purchase
GERRY WEBER International AG Report of the first nine month 2011/12
17
consumer goods. At present, income
expectations and the propensity to purchase
consumer goods are still at a good level, which
primarily reflects the very stable labour market
data and the improved collective bargaining
agreements. As a result, the consumer climate
remains at a high level, partly also because of
declining savings ratios; the current 5.9 points
reading is even higher than the 5.3 points reading
during the same time last year.
While we have so far not noted any significant
decline in demand in the markets we serve, it
cannot be ruled out that the consumer climate in
Germany may be dampened slightly and that the
consumer climate in certain southern European
countries may deteriorate even further. However,
we are firmly convinced that we will be able to
successfully hold our own in a less benign market
environment in a similar fashion as at the time of
the 2008/2009 financial crisis. Our uniquely
positioned brands, our operational strengths, our
flexible sourcing system and, most of all, our
customer structure mean that we are well
prepared for the tasks ahead. In our Retail
business we can rely on the loyalty of our female
customers who have above-average shopping
budgets at their disposal even in time of crisis. In
the wholesale segment, we have cultivated
partnerships with our retail customers for many
years and we have always sought to create win-
win situations in terms of margins for both sides.
Following the rebranding of some 120 acquired
German stores as TAIFUN mono-label stores, we
will expand distribution of our TAIFUN brand to
certain foreign markets and push ahead its
distribution in markets already served by this
brand. In such core markets as the Netherlands
and Austria we plan to establish stand-alone
mono-label stores for the TAIFUN brand.
The Retail segment will expand particularly in the
international markets through the opening of
more Houses of GERRY WEBER. This
expansion will focus on neighbouring European
countries such as Switzerland, Poland and other
eastern European countries. August 2012 saw
the opening of the first company-managed House
of Gerry Weber in Switzerland where two more
openings are already scheduled for early 2013.
Moreover, our Swiss web shop selling all GERRY
WEBER brands went online on 14 August 2012.
Our Wholesale segment is poised for continued
growth as well. New Houses of GERRY WEBER
and shop-in-shops will be opened in cooperation
with local franchise and distribution partners
particularly in non-eurozone countries such as
Russia and certain Middle Eastern countries. Our
market entry in the USA is equally proceeding
well, which has encouraged the Dillard’s
department store chain to raise the number of
stores selling GERRY WEBER merchandise from
11 to 19. Our second stateside distribution
partner, Bloomingdale’s, is set to install more
shop-in-shops as well. Notwithstanding the
market potential existing in the USA, we will
continue to proceed prudently over there,
cooperating exclusively with well established local
partners.
In view of the business performance in the first
nine months of the current year we once more
confirm our EBIT margin guidance between 14.5
and 14.6% for the current financial year
2011/2012. We slightly exceed our given sales
target from EUR 795 million to EUR 800 million
for whole fiscal 2011/12.
Against the background of the growth potential
existing both for our GERY WEBER core brand
and for our TAIFUN and SAMOON brands, we
anticipate achieving significant sales and
GERRY WEBER International AG Report of the first nine month 2011/12
18
earnings increases in the coming months. Our
plans and forecasts for the future will reflect the
risks potentially resulting from the weakening of
the economic outlook in our sales markets.
The coming months will clearly be characterised
by our growth efforts both in our Retail and
Wholesale segments.
GERRY WEBER International AG Report of the first nine month 2011/12
19
Q3 2011/12 Q3 2011/12 9M 2011/12 9M 2010/11
in KEUR 1.5.2012 - 31.7.2012 1.5.2011 - 31.7.2011 1.11.2011 - 31.7.2012 1.11.2010 - 31.7.2011
Sales 178,387.0 146,356.8 554,424.3 486,796.5
Other operating income 3,966.0 2,253.2 10,615.6 8,526.0
Changes in inventories 40,409.9 31,539.2 33,637.1 26,397.8
Cost of materials -119,678.7 -97,784.4 -297,874.7 -272,554.1
Personnel expenses -33,302.2 -26,068.9 -90,919.0 -75,449.9
Depreciation/Amortisation -4,713.7 -2,968.6 -12,801.6 -8,799.9
Other operating expenses -45,271.9 -36,645.3 -129,806.9 -106,996.9
Other taxes -110.5 -305.3 -615.9 -970.1
OPERATING RESULT 19,685.9 16,376.7 66,658.8 56,949.4
Financial result
Income from long-term loans 0.0 0.0 0.0 0.0
Interest income 150.6 518.9 378.5 606.3
Writedowns on financial assets 0.0 0.0 0.0 0.0
Incidential bank charges -232.3 -242.6 -615.3 -629.0
Interest expenses -287.9 -386.3 -1,151.7 -1,463.2
-369.6 -110.0 -1,388.5 -1,485.9
RESULTS FROM ORDINARY ACTIVITIES 19,316.2 16,266.7 65,270.3 55,463.5
Taxes on income
Taxes of the reporting period -6,444.5 -5,546.6 -21,406.0 -18,951.9
Deferred taxes -33.5 -186.5 607.3 -490.7
-6,477.9 -5,733.1 -20,798.6 -19,442.6
NET INCOME OF THE REPORTING PERIOD 12,838.3 10,533.6 44,471.7 36,020.9
Earnings per share (basic) 0.28 0.23 0.97 0.78
First Nine Month 2011/12 (1 November 2011 - 31 July 2012)
CONSOLIDATED INCOME STATEMENT (IFRS) in EUR'000
3rd Quarter 2011/12 (1 May - 31 July 2012)
GERRY WEBER International AG Report of the first nine month 2011/12
20
ASSETS
9M 2011/12 2010/11
in KEUR 31. July 2012 31. Oct. 2011
NON-CURRENT ASSETS
Fixed Assets
Intangible assets 30,391.5 19,270.7
Property, plant and equipment 138,261.8 117,596.5
Investment properties 26,851.0 21,246.4
Financial assets 2,565.0 2,052.5
Other non-current assets
Trade receivables 46.8 107.2
Other assets 375.9 753.1
Income tax claims 3,361.5 2,661.5
Deferred tax assets 3,464.9 2,910.2
205,318.3 166,598.1
CURRENT ASSETS
Inventories 121,357.9 88,526.7
Receivables and other assets
Trade receivables 52,201.1 56,829.5
Other assets 26,931.8 11,925.6
Income tax claims 493.1 493.1
Cash and cash equivalents 23,116.1 90,584.7
224,100.0 248,359.6
TOTAL ASSETS 429,418.4 414,957.7
as of 31 July 2012
CONSOLIDATED BALANCE SHEET TO IFRS in EUR'000
GERRY WEBER International AG Report of the first nine month 2011/12
21
EQUITY AND LIABILITIES
9M 2011/12 2010/11
in KEUR 31. July 2012 31. Oct. 2011
EQUITY
Share capital 45,906.0 45,906.0
Capital reserve 102,386.9 102,386.9
Retained earnings 105,341.7 105,341.7
Accumulated other comprehensive income/loss acc. to IAS 39 1,791.6 -646.4
Exchange differences -474.3 -62.1
Accumulated profits 75,623.9 60,991.0
330,575.8 313,917.2
NON-CURRENT LIABILITIES
Provisions for personnel 429.8 396.2
Other provisions 5,743.7 3,105.4
Financial liabilities 10,580.6 15,214.3
Deferred tax liabilities 5,631.3 4,639.2
22,385.5 23,355.1
CURRENT LIABILITIES
Provisions
Tax liabilities 2,196.4 2,514.4
Provisions for personnel 12,372.0 12,388.7
Other provisions 8,991.0 8,223.6
LIABILITIES
Financial liabilities 16,127.7 6,132.1
Trade payables 21,487.6 34,566.8
Other liabilities 15,282.3 13,859.9
76,457.1 77,685.5
TOTAL EQUITY AND LIABILITIES 429,418.4 414,957.7
as of 31 Juli 2012
CONSOLIDATED BALANCE SHEET TO IFRS in EUR'000
GERRY WEBER International AG Report of the first nine month 2011/12
22
Capital stock Capital Retained Accumulated Exchange Accumulated Equityreserves earnings other comprehensdifferences profits
in KEUR income/loss
As of 1 November 2011 45,906.0 102,386.9 105,341.7 -646.4 -62.1 60,991.0 313,917.1
Sale of own shares 0.0
Dividend payment -29,838.9 -29,838.9
Adjustments of exchange differences -412.3 -412.3
Forward exchange contracts not affecting income
2,438.0 2,438.0
Net income of the reporting period 44,471.7 44,471.7
As of 31 July 2012 45,906.0 102,386.9 105,341.7 1,791.6 -474.4 75,623.9 330,575.8
Capital stock Capital Retained Accumulated Exchange Accumulated Equityreserves earnings other comprehensdifferences profits
in KEUR income/loss
As of 1 November 2010 21,317 45,039 98,295 -3,345 17 49,201 210,524
Sale of own shares 1,636 57,348 58,984
Dividend payment -25,248 -25,248
Capital increase from company own funds 22,953 -22,953 0.0
Adjustments of exchange differences -101 -101
Forward exchange contracts not affecting income
-40 -40
Net income of the reporting period 36,021 36,021
As of 31 July 2011 45,906 102,387 75,342 -3,385 -84 59,974 280,140
STATEMENT OF CHANGES IN GROUP EQUITY (IFRS) IN EUR'000
First Nine Month 2011/12 (1 November 2011 - 31 July 2012)
GERRY WEBER International AG Report of the first nine month 2011/12
23
Q3 2011/12 Ladiesware Ladiesware Consolidated Totalproduction and Retail entries and
in KEUR wholesale other segments
Sales by segment 93,689 82,473 2,225 178,387
EBT (Earnings Before Tax) 21,345 -1,121 -907 19,316
Depreciation of property, plant and equipment 777 1,639 2,298 4,714
Interest income 18 2 130 151
Interest expenses 325 140 -177 288
Assets 186,993 150,810 91,640 429,443
Liabilities 101,668 173,265 -176,091 98,843
Investments in non-current assets 467 10,587 3,912 14,965
Number of employees (as of 31 July 2012) 815 2,899 569 4,283
Q3 2010/11 Ladiesware Ladiesware Consolidated Totalproduction and Retail entries and
in KEUR wholesale other segments
Sales by segment 89,006 55,389 1,962 146,357
EBT (Earnings Before Tax) 12,105 3,205 957 16,267
Depreciation of property, plant and equipment 627 1,135 1,207 2,969
Interest income 92 -4 431 519
Interest expenses 80 27 279 386
Assets 162,983 88,729 129,309 381,021
Liabilities 101,832 85,559 -86,506 100,885
Investments in non-current assets 292 3,069 6,544 9,905
Number of employees (as of 31 July 2011) 790 1,593 544 2,927
3. Quarter 2011/12 (1 May 2011 - 31 July 2012)
SEGMENT REPORTING BY DIVISIONS (IFRS) in EUR'000
GERRY WEBER International AG Report of the first nine month 2011/12
24
9M 2011/12 Ladiesware Ladiesware Consolidated Totalproduction and Retail entries and
in KEUR wholesale other segments
Sales by segment 332,633 214,267 7,524 554,424
EBT (Earnings Before Tax) 58,275 5,068 1,928 65,270
Depreciation of property, plant and equipment 2,246 4,617 5,939 12,802
Interest income 42 30 306 379
Interest expenses 1,565 403 -816 1,152
Assets 186,993 150,810 91,640 429,443
Liabilities 101,668 173,265 -176,091 98,843
Investments in non-current assets 2,203 18,753 23,364 44,319
Number of employees (as of 31 July 2012) 815 2,899 569 4,283
9M 2010/11 Ladiesware Ladiesware Consolidated Totalproduction and Retail entries and
in KEUR wholesale other segments
Sales by segment 325,455 156,047 5,294 486,796
EBT (Earnings Before Tax) 42,202 8,702 4,559 55,463
Depreciation of property, plant and equipment 1,786 3,295 3,719 8,800
Interest income 116 1 489 606
Interest expenses 921 149 393 1,463
Assets 162,983 88,729 129,308 381,020
Liabilities 101,832 85,559 -86,506 100,885
Investments in non-current assets 1,701 5,879 20,502 28,082
Number of employees (as of 31 July 2011) 790 1,593 544 2,927
First Nine Month 2011/12 (1 November 2011 - 31 July 2012)
SEGMENT REPORTING BY DIVISIONS (IFRS) in EUR'000
GERRY WEBER International AG Report of the first nine month 2011/12
25
9M 2011/12 9M 2010/11
in KEUR 1.11.2011 - 31.7.2012 1.11.2010 - 31.7.2011
Operating result 66,658.8 56,949.3
Depreciation / amortisation 12,801.6 8,799.9
Profit / loss from the disposal of fixed assets -43.0 64.0
Increase / decrease in inventories -29,098.2 -24,568.8
Increase / decrease in trade receivables 4,688.8 3,066.7
Increase / decrease in other assets that do not fall under investing or financing activities
-12,404.0 -7,140.6
Increase / decrease in provisions 3,422.6 4,618.6
Increase / decrease in trade payales -13,079.2 -10,623.7
Increase / decrease in other liabilities that do not fall under investing or financing activities
2,268.1 3,273.4
Income tax payments -22,424.0 -19,257.7
Other non-cash effective income/expenses 0.0 -2,050.0
CASH INFLOWS FROM OPERATING ACTIVITIES 12,791.6 13,131.2
Interest income 378.5 606.3
Incidential bank charges -615.3 -629.0
Interest expenses -1,151.7 -1,463.2
CASH INFLOWS FROM CURRENT OPERATING ACTIVITIES 11,403.1 11,645.3
Proceeds from the disposal of properties, plant, equipment and intangible assets 46.0 241.0
Cash outflows for investments in property, plant, equipment and intangible assets -33,957.3 -16,639.0
Cash outflows for the acquisition of fully consolidated companies and other business units less cash and cash equivalents acquired
-14,098.0 -950.0
Cash outflows for investments in investment properties -5,873.0 -8,442.0
Proceeds from the disposal of financial assets 141.5 232.0
Cash outflows for investments in financial assets -654.0 -2,400.0
CASH OUTFLOWS FROM INVESTING ACTIVITIES -54,394.8 -27,958.0
Dividend payment -29,838.9 -25,248.0
Proceeds of the sale of own shares 0.0 58,984.2
Raising / repayment of financial liabilities 5,362.0 -12,745.2
CASH OUTFLOWS / INFLOWS FROM FINANCING ACTIVITIES -24,476.9 20,991.0
Changes in cash and cash equivalents -67,468.6 4,678.3
Cash and cash equivalents at the beginning of the reporting period 90,584.7 45,917.3
CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 23,116.1 50,595.6
CONSOLIDATED CASH FLOW STATEMENT (IFRS) in EUR'000
First Nine Month 2011/12 (1 November 2011 - 31 July 2012)
GERRY WEBER International AG Report of the first nine month 2011/12
26
Explanatory notes on the interim consolidated financial statements of GERRY WEBER International AG for the period
ended 31 July 2012
General information and accounting basis
GERRY WEBER International AG is a listed joint stock company headquartered in Neulehenstraße 8, D
– 33790 Halle (Westphalia/Germany).
The present abridged consolidated financial statements were prepared pursuant to section 37x para. 3
WpHG in conjunction with section 37w para. 2 WpHG and in accordance with the International Financial
Reporting Standards (IFRS) and the related interpretations by the International Accounting Standards
Board (IASB) for interim financial reporting such as they have been adopted by the European Union.
Accordingly, these financial statements do not contain all information and notes that are required for
year-end consolidated financial statements pursuant to IFRS.
The interim consolidated financial statements for the first nine months of 2011/12 (1 November 2011 –
31 July 2012) were prepared in accordance with IAS 34 “Interim Financial Reporting“ and were not
reviewed by the auditors. The accounting and valuation methods and the principles of consolidation
have basically remained unchanged compared to the latest consolidated financial statements for the
year ended 31 October 2011. The interim consolidated financial statements for the third quarter and first
nine months of 2011/12 were prepared in Euros.
The Managing Board is of the opinion that the present unaudited interim consolidated financial
statements contain all necessary information to give a true and fair view of the business performance
and the earnings position in the reporting period. The results achieved in the first nine months of the
financial year 2011/12 do not necessarily provide an indication as to the future results.
Pursuant to IAS 34 “Interim Financial Reporting“, the Managing Board must make discretionary
decisions, estimates and assumptions in the preparation of the interim consolidated financial
statements. These may influence the application of accounting standards and the recognition of assets
and liabilities as well as income and expenses. The actual results may differ from these estimates in
individual cases.
The present interim consolidated financial statements comprise the interim financial statements of
GERRY WEBER International AG and all its subsidiaries for the period ended 31 July 2012. The
subsidiaries are fully consolidated. As of the reporting date, the basis of consolidation comprises 20
subsidiaries.
GERRY WEBER International AG Report of the first nine month 2011/12
27
On 16 November 2011, the GERRY WEBER Group acquired the right to take over all trademark and
intellectual property rights from the liquidator of bankrupt “DON GIL“ Textilhandel GmbH, Vienna
(Austria). These include, in particular, leases, inventories and trademark rights. The purchase price of
EUR 6.1 million was paid from GERRY WEBER International AG’s own financial resources.
The acquired stores contributed approx. EUR -2.0 million to earnings after income and taxes generated
sales revenues of EUR 4.6 million in the first nine months of 2011/12. The following assets and
liabilities (no financial liabilities) were taken over:
1 Trademark rights as well as the right to take over all existing rental contracts
2 The determination of the fair value of the assets and liabilities has not been completed yet. Pursuant to IFRS 3.45 provisional
values have therefore been recognised.
With effect from 15 March 2012, the GERRY WEBER Group acquired the right to take over the existing
leases as well as the inventories and shop fittings of WISSMACH Modefilialen GmbH in Germany. The
purchase price of EUR 8.7 million was paid from GERRY WEBER International AG’s own financial
resources.
The acquired stores contributed approx. EUR -0.2 million to operating earnings in the first nine month of
2011/12 and generated sales revenues of EUR 16.7 million, thereof EUR 14.0 million from the sale of
the WISSMACH products and EUR 2.7 million from the sale of GERRY WEBER products. The following
assets and liabilities (no financial liabilities) were taken over:
Carrying amount Recognised upon
in EUR mill ions in acc. IFRS acquisition
Intangible Assets1 0.0 5.4
Property, plant and equipment 0.3 0.3
Current assets 0.7 0.7
TOTAL ASSETS 1.0 6.4
Non-current liabilities 0.3 0.3
Current liabilities 0.0 0.0
TOTAL LIABILITIES 0.3 0.3
Net assets2 0.7 6.1
Acquisition costs 6,1
Goodwill 0.0
GERRY WEBER International AG Report of the first nine month 2011/12
28
1 Software licenses as well as the right to take over all existing rental contracts
2 The determination of the fair value of the assets and liabilities has not been completed yet. Pursuant to IFRS 3.45 provisional
values have therefore been recognised.
Currency translation
The functional currency of GERRY WEBER International AG is the euro. The financial statements of the
consolidated Group companies prepared in foreign currencies are translated according to the concept of
the functional currency in compliance with IAS 21 "The Effects of Changes in Foreign Exchange Rates".
Given that the consolidated Group companies primarily do business in the economic environment of
their respective country, the functional currency is always identical with each company's local currency.
Accordingly, assets and liabilities are translated at the closing rate, while income and expenses are
translated at the average exchange rate.
Investment properties
Investment properties are accounted for pursuant to IAS 40. They are recognised at cost and written off
using the straight-line method over a useful live of 50 years. This balance sheet item comprises one
building in Düsseldorf (“Hall 30”), which is fully let to external fashion companies. The property was not
used by the company itself in the reporting period. Following construction work carried out on the
building in the first nine months of the current financial year, the carrying amount of the investment
Carrying amount Recognised upon
in EUR mill ion in acc. IFRS acquisition
Intangible assets1 0.0 4.3
Property, plant and equipment 3.4 3.4
Current assets 3.7 3.7
TOTAL ASSETS 7.1 11.4
Non-current liabilities 2.7 2.7
Current liabilities 0.0 0.0
TOTAL LIABILITIES 2.7 2.7
Net assets2 4.4 8.7
Acquisition costs 8.7
Goodwill 0.0
GERRY WEBER International AG Report of the first nine month 2011/12
29
property increased from EUR 21.2 million at the end of the financial year 2010/11 (31 October 2011) to
EUR 26.9 million at the end of the first nine month of 2011/12.
Earnings per share
Earnings per share are determined on the basis of the net income for the period after taxes that is
attributable to the shareholders of GERRY WEBER International AG and the average number of shares
outstanding in the reporting period.
The average number of shares outstanding is determined on a pro-rata temporis basis as shown below.
To facilitate comparison, the figures for first half 2010/11 were adjusted to reflect the issue of free
shares.
Accordingly, earnings per share amounted to EUR 0.97 after nine month in fiscal 2011/12 (9M 2010/11:
EUR 0.78)
Segment reporting
The segmentation of the GERRY WEBER Group results from the internal organisational and reporting
structure and is based on the production units Ladieswear and Wholesale, Retail of Ladieswear and
Other Segments. Secondary segment reporting is based on geographical segments.
For purposes of segment reporting by business segments, the Production and Wholesale segment
comprises the GERRY WEBER brand and its two sublabels, GERRY WEBER EDITION and G.W., and
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the TAIFUN brand as well as the SAMOON brand. The Retail segment comprises the domestic and
international HOUSES OF GERRY WEBER, the factory outlets as well as the online shops.
A detailed segment report is stated in the management report of this interim report.
Post-balance sheet events
Effective 1 August 2012 GERRY WEBER International AG entered into an exclusive licensing
agreement with footwear manufacturer JOSEF SEIBEL Schuhfabrik GmbH based in Hauenstein,
Germany. The licence covers the production and worldwide distribution of a GERRY WEBER-branded
shoe collection. The launch of the first shoe collection is planned for the autumn/winter 2013 season.
GERRY WEBER International AG and its largest Dutch franchise partner have signed an agreement
under which the former will acquire a 51 % stake in the local Houses of GERRY WEBER as well as the
concession shops owned by the latter. As a result of this agreement, the Group will be the majority
owner of currently 25 Houses of GERRY WEBER as well as 15 concession shops in the Netherlands.
The two Dutch operating companies will be fully consolidated in the consolidated accounts of the
GERRY WEBER Group and be accounted for as part of the Retail segment. Under the agreement
signed, the GERRY WEBER Group will have a right of first refusal on the remaining 49 % starting 2017.
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Calendar of financial events
Investor Relations contact:
GERRY WEBER International AG
Investor Relations Department
Claudia Kellert
Neulehenstraße 8
D – 33790 Halle / Westphalia
Germany
Phone: +49 5201 185 0
Email: c.kellert@gerryweber.com
Internet: www.gerryweber.com
Disclaimer
This interim report contains forward-looking statements that are based on assumptions and/or estimates
by the management of GERRY WEBER International AG. While it is assumed that these forward-looking
statements are realistic, no guarantee can be given that these expectations will actually materialise.
Publication of the Nine Month Reporting 2011/12 14 September 2012
End of fiscal year 2011/12 31 October 2012
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