Womenswear retailer Gerry Weber has reported a 3.6 per cent drop in group sales to £376.53 million during its first half as store closures hammered margins.
In the six months to April 30, EBITDA fell 3.3 per cent from £26.32 million to £25.44 million, while operating profit came in at the projected £5.28 million.
Core retail sales fell by 6.8 per cent to £169 million, but the retailer said this was down to the 115 store closures it made as part of its realignment programme. Meanwhile, its wholesale arm saw £125 million in sales.
Online sales brand saw a 11.6 per cent rise, increasing its share of core retail sales from six to 7.2 per cent.
“The figures for the first six months of 2016/17 are fully to plan, which makes us optimistic that we will reach the objectives we have set ourselves for the full financial year,” chief executive Ralf Weber said.
“The market environment remains difficult but we responded at an early state. The first successes can be seen not only on the cost side but are also reflected in the growing acceptance of our fashion products among consumers and our wholesale partners.
“We will use this year of stabilisation to implement new merchandise management schemes, to try new ideas and to continue adjusting ourselves to the rapidly changing market conditions.
“Over the past months, we have not only become more modern and courageous in the development of our collections but also much more innovative and faster with regard to our processes and workflows.”
The fashion brand said its expectation for the full year was now between two and four per cent lower than a year prior.