Store closures hit Gerry Weber's sales, Florian Frank takes over as CFO

The business performance of Gerry Weber International AG in the first nine months of 2020, the company said in a statement, was still strongly influenced by the global spread of the coronavirus pandemic, with almost all points of sale remaining closed from mid-March 2020. Furthermore, the company as a part of its insolvency proceedings under self-administration, closed 205 company-managed points of sale in Germany and abroad and the total number of POS was reduced to 593 as of September 30, 2020. Additionally, the company added that the number of franchised wholesale spaces declined by 422 to 2,015 during the period under review impacting revenues.

Against this background, Gerry Weber generated revenues of 227.1 million euros compared to 367.5 million euros, while gross profit was down at 137 million euros compared to 206.7 million euros. However, gross profit margin improved to 60.3 percent from 56.2 percent due to lowered cost of materials and less changes in inventories. The managing board estimates the Covid-19 impact on revenues during the reporting period at around 73 million euros compared to the initial budget, while the effects of Covid-19 alone on gross profit are estimated at around 44 million euros.

Gerry Weber reports good operating performance in Q3

The company said that due to the good operating performance in the third quarter of 2020, EBITDA turned into positive terrain and amounted to 15.6 million euros compared to 43.3 million euros, after the first nine months of 2020. EBIT improved to negative 22.2 million euros compared to negative 130.2 million euros, while EBIT for the first half was at negative 27.3 million euros. Consolidated net income for the period improved to negative 32.2 million euros compared to negative 256 million euros, with in that quarter alone, the company achieving a consolidated net profit of 2 million euros.

The company expects adverse influences of Covid-19 on the overall economic environment will continue at least until into 2021, which will also affect Gerry Weber’s business. Against this background, the company said, range of revenues expected for 2020 of between 260 million euros and 280 million euros remains unchanged. Also, the company’s expectation regarding the Group’s normalized EBITDA to come in at a negative medium double-digit million amount remains unchanged.

Gerry Weber appoints Florian Frank as new CFO

The company also announced the appointment of Florian Frank, 48, as Chief Financial Officer (CFO) and member of the managing board as of January 1, 2021. The appointment is set until 31 March 2024. Currently, Florian Frank is Chief Restructuring Officer (CRO). As CFO, Frank, the company added, continues to sign responsible for finance & controlling, human resources, outbound logistics, corporate sourcing, capital markets and investor relations.

“We are delighted, that we were able to continue the enormously successful collaboration with Florian Frank in his new role as Chief Financial Officer”, said Dr. Tobias Moser, Head of the supervisory board of Gerry Weber International AG, adding, “As of his first day at Gerry Weber, Florian Frank has made substantial and critical contributions to the survival and the future organization of the company.”

In August 2018, Frank supported Gerry Weber, initially as restructuring consultant. In October of that year, he was appointed member of the managing board. Under his aegis, the company was successfully led out of the insolvency proceedings under self-administration. In doing so, the restructuring of the operative business as well as the restructuring of the finances was completed.