Three monThs reporT 2011/12 - GERRY WEBERir.gerryweber.com/download/companies/gerryweber... · and our own collections. From trendy fashion appeal to strict compliance with quality

Inter Im report to the f Irst quarter 2011/12

Three monThs reporT 2011/12

REVIEW OF THE FIRST QUARTER 2011/12

GERRY WEBER International AG generated

sales revenues of EUR 165.1 million in the first

quarter of 2011/12, an increase by 7.6% on the

same period of the previous year. This sales

growth is all the more impressive as a portion of

the Wholesale revenues will be invoiced only in

the second quarter due to a shift in the delivery

date compared to Q1 2010/11.

The Wholesale segment contributed EUR 101.1

million or 61.3% to the Group’s total revenues.

The contribution made by GERRY WEBER’s

Retail operations rose sharply from 31.0% at the

end of the fiscal year 2010/11 to 38.1%.

The Retail segment generated sales revenues of

EUR 62.9 million in the first quarter of 2011/12

(Q1 2010/11: EUR 49.4 million).

The company’s earnings position improved in line

with the increase in sales. Earnings before

interest and taxes (EBIT) climbed from EUR 15.5

million to EUR 17.7 million at the end of the first

three months of 2011/12. Accordingly, the EBIT

margin rose from 10.1% in the prior year quarter

to 10.7%.

Net income for the period increased from EUR 9.8

million to EUR 11.5 million at the end of the

reporting period (31 January 2012).

Q1 2011/12 Q1 2010/11

in EUR million 01.11.11 - 31.01.12 01.11.10 - 31.01.11

Sales 165.1 153.5

Wholesale 101.1 103.2

Retail 62.9 49.4

Earnings figures

EBITDA 21.6 18.5

EBITDA margin 13.1% 12.0%

EBIT 17.7 15.5

EBIT margin 10.7% 10.1%

EBT 17.1 14.8

EBT margin 10.4% 9.6%

Net income of the reporting period 11.5 9.8

Q1 2011/12 Q1 2010/11

in EUR million 01.11.11 - 31.01.12 01.11.10 - 31.01.11

Total assets 419.7 362.4

Equity 327.4 259.9

Total liabilities 92.3 102.5

Equity ratio 78.0% 71.7%

Key figures GERRY WEBER share

High Q1 2011/12 (in Euro) 26.09 18.65

Low Q1 2011/12 (in Euro) 20.44 16.30

Earnings per share (in Euro) 0.25 0.23

Investments 7.9 7.2

Number of employees 3.409 2.794

GERRY WEBER International AG Interim Report Q1 2011/12

1

NEWS FROM THE COMPANY

Our GERRY WEBER collections are

characterised by modern cuts and materials,

coordinated colour combinations as well as

complex sewing and finishing to the highest

standards of quality. We dress our customer from

head to toe and complete our outfits with

matching accessories such as scarves, shoes,

handbags and eyewear. Our accessories are

carefully coordinated with our collections in terms

of design and colours and can be combined to

perfection.

Generating sales revenues of EUR 0.9 million in

the past financial year 2010/11, the licensing

activities of the GERRY WEBER Group are still in

the start-up phase. However, we see great

potential to enlarge our product range of

accessories and associated therewith for our

licensing activities. We want to complete the

product range for our final customers.

Parts of the offered accessories such as scarves,

fashion jewellery, shoes or belts are designed and

produced by ourselves and are integral part of our

fashion collections. Other accessories such as

eyewear or handbags are presented as licensed

products of the GERRY WEBER brand. The high-

quality products are sold in our own Houses of

GERRY WEBER and by our franchisees as well

as by national and international retailers and

department stores.

Needless to say, we make the same high

demands on our licensing partners and the

products they supply as we make on ourselves

and our own collections. From trendy fashion

appeal to strict compliance with quality standards

to an excellent price-performance ratio - only

those manufacturers that meet these high

demands can become partners of GERRY

WEBER.

Starting April 2012, we will add lifestyle jewellery

to our range of licensed products, which will be

matched to and marketed with the spring/summer

collection. The GERRY WEBER jewellery

collection is characterised by high-quality

materials and sophisticated details. Sparkling

zirconia stones and genuine shell-core pearls help

the pendants, necklaces or rings to the perfect

look. The design of each of the elaborate pieces

is matched to the latest trends.


2

INTERIM GROUP MANAGEMENT REPORT for the first three months of 2011/12

from 1 November 2011 to 31 January 2012

In the first three months of 2011/12, we showed

that we are well on the way to reaching the growth

targets we have set ourselves. The takeover of 29

DON GIL stores in Austria in December 2011 and

the recent acquisition of some 200 WISSMACH

stores in Germany mean that we have

accelerated the pace of growth once more.

Sales performance

GERRY WEBER International AG had a

successful start to the new financial year 2011/12

and generated sales revenues of EUR 165.1

million in the first quarter (1 November 2011 –

31 January 2012). This represents an increase of

7.6% on the previous year’s EUR 153.5 million.

When comparing the two quarters, it should be

noted that we adjusted the delivery date for parts

of our spring/summer collection to our distribution

partners’ requirements and shifted it from January

to February, i.e. to the second quarter of

2011/12. The time between the delivery of the

goods to our partners and their presentation in the

stores has been reduced accordingly.

As a result, the sales revenues generated in the

first three months of 2011/12 cannot be fully

compared with those generated in the first three

months of the previous year. As pre-order figures

for the spring/summer collection were up by over

10% on the previous year in the Wholesale

segment, we believe that we will be able to more

than offset the effect of the shift in the delivery

date to Q2 2011/12.

In spite of the above-mentioned shift in the

delivery date and the fact that Wholesale

revenues were consequently invoiced at a later

date, sales revenues in the Wholesale segment

declined only moderately from EUR 103.2 million

in the first quarter of the previous year to EUR

101.1 million. This is equivalent to 61.3% of total

Group revenues. At the end of the reporting

period, 266 Houses of GERRY WEBER were

managed by franchisees, which means that seven

new franchised Houses of GERRY WEBER were

opened in Q1 2011/12, including five in outside

Germany. The number of shop-in-shops rose by

55 to 2,347 in the first three months of 2011/12.

Our own Retail operations again reported strong

growth on the prior year quarter. In Q1 2011/12,

sales revenues rose by 27.3% to EUR 62.9 million

(Q1 2010/11: EUR 49.4 million). Accordingly, the

Retail segment’s contribution to total Group

revenues climbed from 31.0% at the end of the

financial year (31 October 2011) to 38.1% on 31

January 2012. 22 company-managed Houses of

GERRY WEBER were opened in the first quarter

of 2011/12, including 18 outside Germany.

1.Q. 2011/12 2010/11

01.11.11 - 31.01.12 01.11.10 - 31.10.11

RETAIL

Houses of GERRY WEBER 257 235

Concession Flächen 45 45

Factory Outlets 13 13

WHOLESALE

Houses of GERRY WEBER 266 260

Shop-in-Shops 2,347 2,292


3

Our Retail segment also comprises our three

online shops, whose revenues were up by an

impressive 40.0% on the prior year quarter to

EUR 3.1 million.

Domestic non-consolidated revenues of our

GERRY WEBER, GERRY WEBER EDITION,

G.W., TAIFUN and SAMOON brands totalled

EUR 130.2 in the first quarter of 2011/12, up 7.1

% on the same period of the previous year (EUR

121.5 million). Domestic brand revenues comprise

the revenues generated by our brand companies

with the GERRY WEBER Retail segment and our

wholesale customers.

The GERRY WEBER core brand and its two

sublabels, GERRY WEBER EDITION and G.W.

contributed 80.0% to total brand revenues. The

TAIFUN brand showed an especially strong

performance and boosted its revenues from EUR

17.4 million to EUR 20.4 million at the end of Q1

2011/12. TAIFUN thus contributed 15.7% to total

brand sales (Q1 2010/11: 14.3%). SAMOON, our

brand for plus sizes, increased its sales revenues

by 11.0% to EUR 5.6 million in the first quarter of

2011/12.

A breakdown of consolidated sales revenues by

regions shows that EUR 111.2 million or 67.4%

were generated in Germany. The export markets

contributed EUR 53.8 million to the Group’s first-

quarter revenues. The fact that domestic Group

sales increased from 59.9% of total sales at the

end of 2010/1 to 67.4% in the first quarter is due,

among other things, to the opening of company-

managed Houses of GERRY WEBER in

Germany.

Earnings position

The increase in sales revenues again led to a rise

in earnings in the first three months of 2011/12.

Earnings before interest and taxes (EBIT) climbed

from EUR 15.5 million in the first quarter of the

previous year to EUR 17.7 million. Accordingly,

the EBIT margin improved from 10.1% to 10.7%.

In spite of a 7.6% increase in sales compared to

Q1 2010/11, the cost of materials remained

almost constant at EUR 105.7 million. As a result,

the cost of materials as a percentage of sales

improved markedly from 59.0% to 55.8%. Besides

lower raw materials prices, this is primarily

attributable to better purchasing terms. The

improved purchasing terms clearly reflect the

Retail Sales by Quarter

61.955.4

51.349.4

62.9

0

10

20

30

40

50

60

70

Q1 2010/11 Q2 2010/11 Q3 2010/11 Q4 2010/11 Q1 2011/12

Brand Contribution to Group Sales

TAIFUN15.7%

SAMOON4.3%

GERRY WEBER 80.0%


4

effectiveness of our flexible sourcing system for

the selection of manufacturing partners. The

increasing share of our own Retail business is

another reason for this development.

As a result of the strong growth of the GERRY

WEBER Group, especially the expansion of our

Retail operations, personnel expenses climbed

from EUR 23.9 million to EUR 27.3 million. The

same applies to other operating expenses, which

climbed 15.9% to EUR 37.0 million. With regard to

the higher fixed costs, it should be noted that a

total of 40 new company-managed Houses of

GERRY WEBER were opened in Q4 2010/11

alone. Compared to the established Houses of

GERRY WEBER, these new HoGWs are still

making a below-average contribution to sales and

earnings.

Taking into account increased

depreciation/amortisation of EUR 3.9 million (Q1

2010/11: EUR 3.0 million), which relates, among

other things, to the shop fittings of our Houses of

GERRY WEBER, earnings before interest and

taxes (EBIT) in the first three months of 2011/12

were up by an impressive 14.0% on the same

period of the previous year to EUR 17.7 million.

Reflecting the improvement in EBIT, the EBIT

margin climbed from 10.1% to 10.7%.

Due to lower interest expenses in conjunction with

higher interest income, the financial result

improved from EUR -0.7 million in Q1 2010/11 to

EUR -0.5 million at the end of the reporting

period.

Earnings before taxes (EBT) totalled EUR 17.1

million in Q1 2011/12, which represents an

increase by EUR 2.4 million or 16.1% on the first

quarter of the previous year.

After income taxes of EUR 5.6 million, the

GERRY WEBER Group generated a net profit for

the period of EUR 11.5 million, which was up by

EUR 1.6 million on the same period of the

previous year. This is equivalent to earnings per

share of EUR 0.25 (Q1 2010/11: EUR 0.23).

Net worth position

On the assets side of the balance sheet, total

assets increased by 1.1% compared to the end of

the fiscal year 2010/11 (31 October 2011) to EUR

419.7 million. Non-current assets climbed from

EUR 166.6 million to EUR 169.2 million, which is

primarily attributable to an increase in the carrying

amounts of property, plant and equipment and

investment properties.

Property, plant and equipment include the shop

fittings of our own Houses of GERRY WEBER.

Due to the opening of new company-managed

Houses of GERRY WEBER, property, plant and

equipment was up by a moderate EUR 1.5 million

on the end of the financial year 2010/11 to EUR

119.1 million as of the end of Q1 2011/12.

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.

Construction measures carried out in the first

three months of 2011/12 increased the carrying

amount of this building from EUR 21.2 million to

EUR 24.3 million.

As outlined above, the delivery date for parts of

the collections was shifted from January to

February 2012 to cater to our sales partners’

requirements. As a result, inventories at the end


5

of the reporting period increased from EUR 88.5

million to EUR 108.5 million. Moreover, the

takeover of the DON GIL stores in Austria added

about EUR 2 million to inventories. These figures

merely capture the situation on the respective

reporting dates.

Current other assets climbed from EUR 11.9

million to EUR 25.1 million as of the end of the

first quarter of 2011/12. This is primarily

attributable to the December 2011 takeover of the

DON GIL stores in Austria as well as to higher

income tax refund claims.

Liquid funds declined from EUR 90.6 million at the

end of the financial year 2010/11 to EUR 53.6

million on the reporting date on 31 January 2012,

which is primarily attributable to seasonally higher

inventory holdings.

On the liabilities side of the balance sheet, equity

rose by EUR 13.5 million or 4.3% to EUR 327.4

million. Accordingly, the equity ratio stood at

78.0% (31 October 2011: 75.7%).

Current and non-current financial liabilities were

reduced by EUR 1.7 million (-8.0%) to EUR 19.6

million as of the end of Q1 2011/12 due to

scheduled repayments. Current and non-current

provisions also decreased slightly by EUR 1.4

million to EUR 25.2 million. Trade liabilities felt

significantly by EUR 5.6 million to EUR 29.9

million.

As in the previous quarters, GERRY WEBER

International AG has a very sound balance sheet

structure. This is not least reflected in the fact that

liquid funds, at EUR 53.6 million, are much higher

than financial liabilities, at EUR 19.6 million.

Financial assets and investments

Due to seasonal fluctuations in the fashion

industry and the resulting increase in inventories,

the outflow of funds in the first quarter of our

financial year is traditionally higher, but this is

offset in the following quarters. Against this

background, the company reported an outflow of

funds from operating activities of EUR 26.9 million

in the first three months of 2011/12. This

represented an increase of EUR 9.0 million or

50.5% compared to the prior year quarter, which

was attributable to the strong growth of our

business activities and the expansion of our Retail

segment.

Cash outflows from investing activities totalled

EUR 7.9 million in Q1 2011/12 and primarily

comprise fixed asset investments of EUR 4.9

million as well as investments in our investment

property “Hall 30” in an amount of EUR 3.1

million.

Cash outflows from financing activities amounted

to EUR 1.7 million in the first three months of

2011/12. The first quarter of the previous year

was marked by the sale of own shares, which led

to an inflow of cash of EUR 29.5 million.

As a result, cash and cash equivalents declined

from EUR 37.0 million to EUR 53.6 million as of

the reporting date on 31 January 2012.


6

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”.

As outlined above, the delivery date for parts of

the spring/summer collection was shifted from

January to February 2012, i.e. to the second

quarter, to better accommodate our sales

partners’ requirements. In spite of this shift, sales

revenues in the Wholesale segment declined only

moderately from EUR 103.2 million in the first

quarter of the previous year to EUR 101.1 million.

Due to the improvement in the cost of materials

as a percentage of sales and strict cost

management, the segment’s earnings before

taxes (EBT) increased from EUR 11.6 million to

EUR 13.4 million (+16.0%) in spite of moderately

lower sales revenues. At 823, the average

headcount slightly increased compared to the first

three months of the previous year (794

employees).

22 company-managed Houses of GERRY

WEBER were opened in the first quarter of

2011/12, including 18 outside Germany. Twelve of

the new HoGWs are former DON GIL stores in

Austria, which were acquired in the context of the

takeover of a total of 29 DON GIL stores and

converted.

Total sales in the Retail segment increased by

27.3% from EUR 49.4 million in Q1 2010/11 to

EUR 62.9 million in the first three months of

2011/12. This was due to the new stores opened

in the previous months but also to a 6.2%

increase in like-for-like sales.

In spite of one-time start-up expenses for the

opening of new company-managed Houses of

GERRY WEBER and the increase in personnel

and other operating expenses resulting from the

expansion of the Retail activities, the Retail

segment’s EBIT increased from EUR 2.5 million to

EUR 2.9 million in Q1 2011/12. In this context, it

should be noted that recently opened Houses of

GERRY WEBER make a lower contribution to

sales and earnings than established HoGWs.

In accordance with the comprehensive

investments in the expansion of the Retail

operations, the segment’s assets increased from

EUR 75.2 million in the first quarter of the

previous year to EUR 120.8 million. At the same

time, liabilities rose from EUR 83.5 million to EUR

135.7 million.

The average headcount of the Retail segment

grew from 1,453 in the first three months of the

previous year to 2,042. The rise of number of

employees by 40.5% and the creation of 589 new

jobs reflect the enormous growth rate of our Retail

business.

The other segments contributed EUR 1.0 million

(Q1 2010/11: EUR 0.9 million) or 0.6% to total

Group sales. The increase is due, among other

things, to the rental income from Hall 30, which is

fully let to external fashion companies. An

average of 544 people were employed in this

segment (Q1 2010/11: 547 people).


7

OPPORTUNITY AND RISK REPORT

Like any other company, GERRY WEBER

International AG is exposed to opportunities and

risks in the context of its business activities. The

Managing Board of GERRY WEBER International

AG has installed appropriate risk management

processes and control systems in the Group to

avoid risks as well as to manage existing risks

and initiate appropriate counter-measures.

Through ongoing analyses and observations,

opportunities are identified early on with a view to

developing strategies and measures for exploiting

them at an early stage.

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.

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.

SUPPLEMENTARY REPORT

On 8 February 2012, GERRY WEBER

International AG announced its intention to take

over roughly 200 stores of WISSMACH

Modefilialen GmbH, Göppingen, in the context of

an asset deal subject to the approval of the

Federal Cartel Office. The latter has approved the

transaction in the meantime, which means that

the takeover of the former WISSMACH stores will

be completed as contractually agreed with effect

from 15 March 2012.

REPORT ON EXPECTED DEVELOPMENTS

The expectations for the world economy remain

subject to great uncertainty. This is primarily due

to the continued turmoil in the financial markets as

well as to the consequences of the sovereign debt

crisis. This uncertainty also has an impact on the

spending behaviour of our customers. According

to a GfK study of February 2012, the consumer

climate in our German home market, whose

67.4% contribution to total Group revenues makes

it our most important market, is showing a

moderate upward trend. In particular, consumers

were more optimistic about their income situation,

not least thanks to the stable labour market

situation in Germany.

The GERRY WEBER Group feels that the good

performance in the first three months of 2011/12

confirms its sales and earnings projections. The

financial year 2011/12 will see the company focus

on growth in both its Retail and its Wholesale

segment.

In the chapter “supplementary report” we already

referred to the takeover of roughly 200 stores of

WISSMACH Modefilialen GmbH. About 150 to

160 of these stores are to be converted into

mono-label stores of GERRY WEBER‘s TAIFUN

and SAMOON brands and into Houses of GERRY

WEBER. Against the background of the

WISSMACH takeover in February 2012, we


8

increased our sales forecast of January 2012 from

EUR 775 million to EUR 795 million for the current

fiscal year.

The necessary investments in the conversion of

the TAIFUN and SAMOON mono-label stores and

Houses of GERRY WEBER as well as the one-

time start-up costs will weigh on our bottom line.

In spite of these extraordinary burdens, we expect

the EBIT margin to rise from the past financial

year’s 14.2% to 14.5% to 14.6%.

We expect the converted WISSMACH stores to

make a contribution of between EUR 45 and 50

million to sales revenues as well as a positive

contribution to earnings already in the next

financial year 2012/13. This means that the

Wissmach takeover will have paid off after only

one year.

Aside from the takeover of the WISSMACH

stores, we will continue to expand both our Retail

and our Wholesale operations. We see

considerable growth potential outside Germany.

Together with existing and new franchise partners

we will open new franchised Houses of GERRY

WEBER primarily abroad. New stores in countries

such as Benelux, Russia and the Middle East are

already in the implementation phase.

After the conversion of the former WISSMACH

stores, some 75 company-managed Houses of

GERRY WEBER will be opened in the financial

year 2011/12. As many as 22 stores were opened

already in the first quarter of 2011/12, thereof 18

Houses of GERRY WEBER abroad.

Against the background of developments in the

first three months of 2011/12, we continue to

project strong sales growth as well as an

improvement in earnings in line with the above

targets. We will continue to push ahead with our

growth strategy in the coming months.


9

Explanatory notes on the interim consolidated financial statements of GERRY WEBER International AG for the

period ended 31 January 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 three months of 2011/12

(1 November 2011 – 31 January 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 first three 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

three 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 January 2012. The subsidiaries are fully consolidated. As of the reporting date, the basis of


10

consolidation comprises 20 subsidiaries, which means that it remained unchanged compared

to the end of the financial year 2010/11.

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 three months of the current financial

year, the carrying amount of the investment property increased from EUR 21.2 million at the

end of the financial year 2010/11 (31 October 2011) to EUR 24.3 million at the end of the first

quarter 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 Q1 2010/11 were adjusted to reflect the

issue of free shares.

Q1 2011/12 Q1 2010/11

01.11.2011 - 31.01.2012 01.11.2010 - 31.01.2011

November 2011 45,905,960 x 1/12 42,634,484 x 1/12

December 2011 45,905,960 x 1/12 43,212,292 x 1/12

January 2012 45,905,960 x 1/12 44,416,018 x 1/12

= 45,905,960 units = 43,416,018 units


11

Accordingly, earnings per share amounted to EUR 0.25 in the first quarter of 2011/12 (Q1

2010/11: EUR 0.23)

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 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.

Post-balance sheet events

On 8 February 2012, GERRY WEBER International AG announced its intention to take over

roughly 200 stores of WISSMACH Modefilialen GmbH, Göppingen, in the context of an asset

deal subject to the approval of the Federal Cartel Office. The latter has approved the

transaction in the meantime, which means that the takeover of the former WISSMACH stores

will be completed as contractually agreed with effect from 15 March 2012.


12

Q1 2011/12 Q1 2010/11

in KEUR 01.11.2011 - 31.01.2012 01.11.2010 - 31.01.2011

Sales 165,052.9 153,452.5

Other operating income 2,434.9 1,798.8

Changes in inventories 24,442.7 24,130.1

Cost of materials -105,713.6 -104,769.3

Personnel expenses -27,316.1 -23,944.4

Depreciation/Amortisation -3,892.4 -2,995.1

Other operating expenses -36,972.2 -31,895.8

Other taxes -368.6 -285.2

OPERATING RESULT 17,667.6 15,491.6

Financial result

Income from long-term loans 74.6 0.0

Interest income 111.8 54.4

Writedowns on financial assets 0.0 0.0

Incidential bank charges -195.2 -182.8

Interest expenses -533.5 -609.6

-542.3 -738.0

RESULTS FROM ORDINARY ACTIVITIES 17,125.3 14,753.6

Taxes on income

Taxes of the reporting period -5,565.7 -5,046.1

Deferred taxes -93.2 114.1

-5,658.9 -4,932.0

NET INCOME OF THE REPORTING PERIOD 11,466.4 9,821.6

Earnings per share (basic) 0.25 0.23

1. Quarter 2011/12 (01 November 2011 - 31 January 2012)

CONSOLIDATED INCOME STATEMENT (IFRS) in EUR'000


13

ASSETS

Q1 2011/12 Q1 2010/11

in KEUR 31.01.2012 31.01.2011

NON-CURRENT ASSETS

Fixed Assets

Intangible assets 18,786.5 19,270.7

Property, plant and equipment 119,115.7 117,596.5

Investment properties 24,250.6 21,246.4

Financial assets 1,991.5 2,052.5

Other non-current assets

Trade receivables 46.8 107.2

Other assets 628.2 753.1

Income tax claims 1,806.7 2,661.5

Deferred tax assets 2,603.6 2,910.2

169,229.6 166,598.1

CURRENT ASSETS

Inventories 108,509.9 88,526.7

Receivables and other assets

Trade receivables 62,789.0 56,829.5

Other assets 25,103.0 11,925.6

Income tax claims 493.1 493.1

Cash and cash equivalents 53,585.1 90,584.7

250,480.1 248,359.6

TOTAL ASSETS 419,709.7 414,957.7

as of 31 January 2012

CONSOLIDATED BALANCE SHEET TO IFRS in EUR'000


14

EQUITY AND LIABILITIES

Q1 2011/12 Q1 2010/11

in KEUR 31.01.2012 31.01.2011

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 1,436.2 -646.4

Exchange differences -141.7 -62.1

Accumulated profits 72,457.4 60,991.0

327,386.5 313,917.1

NON-CURRENT LIABILITIES

Provisions for personnel 488.1 396.2

Other provisions 3,410.6 3,105.4

Financial liabilities 13,998.9 15,214.3

Deferred tax liabilities 5,318.3 4,639.2

23,215.9 23,355.1

CURRENT LIABILITIES

Provisions

Tax liabilities 2,321.5 2,514.4

Provisions for personnel 12,242.6 12,388.7

Other provisions 6,759.3 8,223.6

LIABILITIES

Financial Liabilities 5,629.5 6,132.1

Trade payables 28,996.0 34,566.8

Other liabilities 13,158.4 13,859.9

69,107.3 77,685.5

TOTAL EQUITY AND LIABILITIES 419,709.7 414,957.7

as of 31 January 2012

CONSOLIDATED BALANCE SHEET TO IFRS in EUR'000


15

Q1 2011/12Capital stock Capital Retained Accumulated Exchange Accumulated Equity

reserves earnings other comprehensive differences profitsin KEUR income/loss

As of 01 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

Allocation of retained earnings of the AG from the net income of the reporting period

Adjustments of exchange differences -79.6 -79.6

Forward exchange contracts not affecting income 2,082.6 2,082.6

Net income of the reporting period 11,466.4 11,466.4

As of 31 January 2012 45,906.0 102,386.9 105,341.7 1,436.2 -141.7 72,457.4 327,386.5

Q1 2010/11Capital stock Capital Retained Accumulated Exchange Accumulated Equity

reserves earnings other comprehensive differences profitsin KEUR income/loss

As of 01 November 2010 21,317 45,039 98,295 -3,345 17 49,201 210,524

Sale of own shares 1,066 36,718 37,784

Allocation of retained earnings of the AG from the net income of the reporting period

Adjustments of exchange differences -57 -57

Forward exchange contracts not affecting income 1,798 1,798

Net income of the reporting period 9,822 9,822

As of 31 January 2011 22,383 81,757 98,295 -1,547 -40 59,023 259,871


STATEMENT OF CHANGES IN GROUP EQUITY (IFRS) IN EUR'000


16

Q1 2011/12 Ladiesware Ladiesware Consolidated Totalproduction and Retail entries and

in KEUR wholesale other segments

Sales by segment 101,106 62,903 1,044 165,053

EBT (Earnings Before Tax) 13,435 2,936 754 17,125

Depreciation of property, plant and equipment 704 1,367 1,821 3,892

Interest income 11 27 74 112

Interest expenses 648 113 -228 533

Assets 136,467 120,801 162,442 419,710

Liabilities 102,562 135,724 -145,962 92,324

Investments in non-current assets 366 2,896 4,690 7,952

Number of employees 823 2,042 544 3,409

Q1 2010/11 Ladiesware Ladiesware Consolidated Totalproduction and Retail entries and

in KEUR wholesale other segments

Sales by segment 103,176 49,402 874 153,452

EBT (Earnings Before Tax) 11,585 2,497 672 14,754

Depreciation of property, plant and equipment 562 1,073 1,360 2,995

Interest income 3 0 51 54

Interest expenses 460 66 83 609

Assets 138,639 75,201 148,560 362,400

Liabilities 113,243 83,472 -94,186 102,529

Investments in non-current assets 238 1,068 3,263 4,569

Number of employees 794 1,453 547 2,794


SEGMENT REPORTING BY DIVISIONS (IFRS) in EUR'000


17

Q1. 2011/12 Q1. 2010/11

in KEUR 01.11.2011 - 31.01.2012 01.11.2010 - 31.01.2011

Operating result 17,667.6 15,491.5

Depreciation / amortisation 3,892.4 2,995.1

Profit / loss from the disposal of fixed assets 0.0 0.0

Increase / decrease in inventories -19,983.3 -21,678.5

Increase / decrease in trade receivables -5,899.0 -3,359.0

Increase / decrease in other assets that do not fall under investing or financing activities

-10,991.7 -3,646.7

Increase / decrease in provisions -1,213.3 -592.5

Increase / decrease in trade payales -5,570.8 -2,525.1

Increase / decrease in other liabilities that do not fall under investing or financing activities

2,565.5 539.4

Income tax payments -7,072.2 -5,073.7

Other non-cash effective income/expenses -263.8 0.0

CASH OUTFLOWS FROM OPERATING ACTIVITIES -26,868.6 -17,849.5

Income from investments 74.6 0.0

Interest income 111.8 54.3

Incidential bank charges -195.2 -182.8

Interest expenses -533.6 -609.6

CASH OUTFLOWS FROM CURRENT OPERATING ACTIVITIES -27,411.0 -18,587.6

Proceeds from the disposal of properties, plant, equipment and intangible assets 20.1 567.0

Cash outflows for investments in property, plant, equipment and intangible assets -4,880.2 -4,568.8

Cash outflows for investments in investment properties -3,071.5 -928.0

Proceeds from the disposal of financial assets 60.9 71.5

Cash outflows for investments in financial assets 0.0 -1,752.6

CASH OUTFLOWS FROM INVESTING ACTIVITIES -7,870.7 -6,610.9

Proceeds of the sale of own shares 0.0 37,784.2

Raising / repayment of financial liabilities -1,718.0 -8,332.3

CASH OUTFLOWS / INFLOWS FROM FINANCING ACTIVITIES -1,718.0 29,451.9

Changes in cash and cash equivalents -36,999.7 4,253.4

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 53,585.0 50,170.7


CONSOLIDATED CASH FLOW STATEMENT (IFRS) in EUR'000


18

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: [email protected]

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 First Quarter Reporting 2011/12 16 March 2012

Annual General Meeting 05 June 2012

Publication of the First Half Year Reporting 2011/12 14 June 2012

Publication of the Nine Month Reporting 2011/12 14 September 2012

End of fiscal year 2011/12 31 October 2012


19

Documents

Three monThs reporT 2011/12 - GERRY WEBERir.gerryweber.com/download/companies/gerryweber... · and our own collections. From trendy fashion appeal to strict compliance with quality