German clothing group Gerry Weber has managed to raise its company profits in the first part of its fiscal year 2013/2014 from 43.4 million euro to 49.5 million euro. The 14 % surge was mainly because its own stores performed much better.
Own stores perform well
Gerry Weber’s turnover for the first half of its fiscal year 2013/14 (from November to April) reached 412.8 million euro, 2.2 % more than in the same period the year before.
Mainly its 770 self-owned stores performed well with a 13.3 % sales increase to 188.6 million euro, which is partly because Weber expanded its number of stores. On a like-for-like basis, it managed a 5.2 % turnover increase, still more than what the German market grew on average.
Retail focus grows margins
Sales in multi-brand stores dropped 5.6 % to 224.1 million euro, partly because of a more selective supply process. Gerry Weber has altered its supply process to limit the risk of default payments. Last year’s numbers also included the Belgian House of Gerry Weber. The company has acquired a majority stake in this concern and has moved its numbers from the wholesale division into the retail division.
Thegross margin is also impacted by the increase in retail sales as it grew from 52.3 % to 55.0 %, when comparing the first part of last year to the first part of this fiscal year. That has also raised company profits.