DGAP-News: GERRY WEBER continues series of record results in first quarter of 2007/2008

Gerry Weber International AG / Quarter Results/Quarter Results

27.03.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Renewed double-digit sales growth and disproportionate profit improvement
High order volumes suggest record sales for the full year
Company continues to speed up its expansion

GERRY WEBER International AG had a brilliant start to the current financial
year and finished the first quarter of 2007/2008 with new record figures in
both sales and earnings. Coming in at EUR 121.7 million, Group sales were
up 14.4 percent on the previous year’s EUR 106.4 million. All earnings
ratios increased at a disproportionate rate. 'These results demonstrate
that we continue to outdistance our competitors. Very few players in our
industry have been able to match our growth momentum since we have taken
full control of the value chain from design development to retail sales
through our HOUSES OF GERRY WEBER', commented Managing Board Chairman
Gerhard Weber.  Incoming orders for the first and second collection of the
autumn/winter 2008 season were up 13.0 percent on the previous year's
level, suggesting that record sales will be reported also for the full
financial year.

The GERRY WEBER Group’s earnings figures and ratios improved even ahead of
its excellent sales growth. Earnings before interest, tax, depreciation and
amortisation (EBITDA) rose by 31.3 percent from EUR 9.6 million to EUR 12.6
million. Earnings before interest and tax (EBIT) increased by 30.3 percent
from EUR 7.6 million to EUR 9.9 million. Earnings before tax (EBT) came in
at EUR 8.8 million, reflecting an increase of 33.3 percent on the previous
year's EUR 6.6 million. The respective margins climbed accordingly. Net
profit for the first quarter rose by 54.1 percent from EUR 3.7 million to
EUR 5.7 million. DVFA earnings per share increased by EUR 0.09 to EUR 0.25.
The clear earnings growth reflects the GERRY WEBER Group's unique position
in the market which is underpinned by optimised processes, cost-efficient
procurement structures and an innovative distribution system. In addition,
the company has benefited from Germany’s corporate tax reform which has
lowered the overall tax rate from 42 percent to 32 percent.

The 14.4 percent growth in Group revenues was mainly supported by the
excellent development of the GERRY WEBER core brand and the clear increment
in retail revenues. At EUR 97.7 million, brand sales were up 12.0 percent
on the previous year's EUR 87.2 million. The GERRY WEBER brand generated
revenues of EUR 70.5 million which represents an increase of 15.6 percent
on the previous year's level (EUR 61.0 million). Contributing 72.2 percent
to total sales, GERRY WEBER remained the Group’s most important brand. The
sublabels, GERRY WEBER EDITION and G.W., contributed appreciably to the
success of the core brand. The single item line, GERRY WEBER EDITION,
achieved revenues of EUR 21.7 million, exceeding the previous year's figure
of EUR 15.5 million by 40.0 percent. Sales of the aggressively priced G.W.
label improved from EUR 2.2 million in the previous year to EUR 3.7
million, reflecting an increase of 68.2 percent.

The younger TAIFUN-Collection label realised sales of EUR 21.1 million. The
Group’s second brand thus contributed 21.6 percent to brand revenues. The
niche brand for plus sizes, SAMOON-Collection, booked sales of EUR 6.1
million, accounting for 6.2 percent of total revenues.

The biggest sales increment, 21.5 percent, was achieved by the Group's
retail unit, which aggregates the revenues of the 71 company-managed HOUSES
OF GERRY WEBER in Germany and abroad. The Group's own retail activities
increased from EUR 22.3 million in the previous year to EUR 27.1 million.
This growth reflected both the opening of numerous new HOUSES OF GERRY
WEBER and higher same-store sales. During the first quarter of 2007/2008 a
total of 28 new HOUSES OF GERRY WEBER were opened as part of the GERRY
WEBER Group’s expansion strategy. This number includes 23 franchised HOUSES
OF GERRY WEBER. On 31 January 2008 the total number of these multibrand
stores amounted to 205 worldwide. In recent years the company has evolved
into a vertically integrated systems supplier. The company-managed retail
business meanwhile contributes 22.3 percent to Group sales.

The GERRY WEBER Group’s strong expansion is also reflected in the
development of its workforce. On 31 January 2008, the company’s headcount
stood at 2,058 compared to 1,907 twelve months earlier. The majority of the
151 newly created positions is accounted for by the retail segment and,
more specifically, by the newly opened HOUSES OF GERRY WEBER under company
management.

In the current financial year the GERRY WEBER Group intends to push ahead
its fast pace of growth and envisages renewed double-digit increments in
terms of both sales and profitability. The Group targets sales revenues of
EUR 575 million and an EBIT margin of 11.0 percent for the full financial
year. Double-digit sales and profit growth is also envisaged for the
financial year 2008/2009. Four years from now sales are to hit the EUR 1
billion mark and the EBIT margin is to amount to 15 percent.

The company intends to speed up the expansion of its retail business in the
current financial year which is to see the opening of some 90 additional
HOUSES OF GERRY WEBER, half of which will be franchised and half of which
will be company managed.
The company plans to open some 70 of these multibrand stores in each of the
following four years, with the medium-term goal being to sell approximately
40 percent of its products through company-managed and franchised HOUSES OF
GERRY WEBER.

In order to revive the strong momentum in the wholesale revenues as well,
alliances with retailers are to be intensified through the installation of
400 new shop-in-shops during the current financial year. The company is
presently running a 12-month test phase in four department stores to
prepare its entry into the concessions business. Staffed with GERRY WEBER
Group personnel, these concessions have achieved sales growth in the region
of 35 percent already during the initial months. 'This once again proves
that our business generates sales revenues which are far above normal',
Gerhard Weber said. Going forward, the GERRY WEBER Group intends to offer
specific support services to help retailers achieve clear profitability
gains.

During the current year the company will focus on boosting its sales
revenues while improving its earnings on a sustained basis. Further cost
cuts will be pursued by optimising the company’s structures in the Far
East. 'We have a strong record in breaking new ground both on the marketing
and on the purchasing side, and our success has proven us right. We will
continue to pioneer new trends and build on our competitive edge through
consistent innovation', Gerhard Weber said in conclusion.


Hans-Dieter Kley
Tel.: +49 (0) 52 01 185-0
E-mail: b.uhlenbusch@gerryweber.de
www.gerryweber-ag.de



DGAP 27.03.2008 
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Language:     English
Issuer:       Gerry Weber International AG
              Neulehenstraße 8
              33790 Halle/Westfalen
              Deutschland
Phone:        +49 (0)5201 185-0
Fax:          +49 (0)5201 5857
E-mail:       h.kley@gerryweber.de
Internet:     www.gerryweber-ag.de
ISIN:         DE0003304101
WKN:          330410
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf;
              Freiverkehr in Berlin, Stuttgart
End of News                                     DGAP News-Service
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