Sales have continued to fall at German fashion retailer Gerry Weber, but its restructuring programme is beginning to yield positive results.
In the first quarter of 2017, overall sales revenues dropped by 2.1 per cent to £182.9 million, down from £186.8 million a year prior.
The retailer‘s core brand saw a 3.4 per cent drop in sales, which the company stated was in line with the market average of a three per cent decline. This has slowed since 2016‘s first quarter decline of 7.5 per cent.
Meanwhile, EBITDA climbed by 7.7 per cent to £13.6 million, up from £12.7 million the year prior.
This rise in earnings before tax has been attributed to the success of the company‘s FIT4GROWTH realignment programme.
“The first three months of 2016/17 show that the FIT4GROWTH realignment programme is effective and is beginning to bear fruit,” chief executive Ralf Weber said.
“The measures already implemented have not only had a positive effect on the cost structure of the Core segment but have also helped to accelerate the modernisation of our brands.
“We must now continue to implement the realignment with great determination in order to return to profitable growth after the stabilisation phase.”
Confirmed forecasts for the coming financial year expect the retailer to see a further revenue decline between two and four per cent.