Gerry Weber intends to rapidly expand its branch network in cooperation with franchise partners subject to the availability of suitable retail locations. Wholesale sales also developed excellently in the first quarter. In particular, sales of the Gerry Weber brand, which contributed 58.6 percent to total sales revenues, increased by 13.9 percent to €56.4 million.
Sales of the second most important brand, Taifun, grew at a slightly slower pace of 5.0 percent to €23.2 million. Due to postponed deliveries, sales of the Samoon brand declined slightly, which will be compensated in the second quarter. Incoming orders already point to a clear growth trend.
Gerry Weber relies fully on the mid-price segment, with the Gerry Weber core brand catering for women over 30. Its fashion sells at stable prices which provide retailers with a dependable basis for determining their mark-ups, while consumers can be sure to have bought attractive fashion at a good price-performance ratio.
The Gerry Weber brand now benefits from the considerable sharpening of its key price points some 18 months ago and that in the current year it can also be managed to keep Gerry Weber fashion out of retailers' price promotions.
The company now plans a new hub in Hungary and to increase the sourcing of goods and production capacity in the Far East. Due to the seasonality of Gerry Weber's fashion business, it will improve even more significantly in the further course of theyear.
The company targets an EBIT margin of 10.5 percent for the full fiscal year 2005/2006. Its sales targets are €440 million and €500 million for FY 2005/2006 and 2007, respectively.
Gerry Weber International AG - The group's principal activity is to produce and distribute women's clothes. It distributes these clothes under brand names 'Gerry weber', 'Taifun' and 'Samoon'.
Gerry Weber International AG
marketing@alchempro.com
