Interim report to the first half year 2011/12. report 2011/12

Transcription

1 Interim report to the first half year 2011/12 Six months report 2011/12

2 REVIEW OF THE FIRST HALF 2011/12 Following a 7.6% increase in sales revenues in the first quarter of the financial year 2011/12, boosted its revenues by an impressive 12.8% in the second quarter compared to the previous year. The GERRY WEBER Group s sales revenues rose from EUR million in the prior year quarter to EUR million in the second quarter of 2011/2012 (1 Feb April 2012). Group sales revenues for the first half of the current financial year (1 Nov April 2012) totalled EUR million, which represents a year-on-year increase of 10.5%. The Retail segment accounted for 35.0% of total Group revenues, up from 29.6% in the first half of the previous year. The sell-off of the WISSMACH merchandise taken over with effect from 15 March 2012 contributed about EUR 6.1 million to the Retail revenues. Although the Wholesale segment increased its revenues from EUR million to EUR million in H1 2011/2012, the segment s contribution to total Group revenues declined from 69.5% to 63.5%. million, with the EBIT margin reaching 12.5% (previous year: 11.9%). Net income for the first half of 2011/12 increased by 24.1% from EUR 25.5 million in the previous year to EUR 31.6 million. Accordingly, earnings per share climbed from EUR 0.57 to EUR H1 2011/12 H1 2010/11 in EUR million Total assets Equity Total liabilities Equity ratio 77.0% 74.3% Key figures GERRY WEBER share High H1 2011/12 (in Euro) Low H1 2011/12 (in Euro) Earnings per share (in Euro) Investments Number of employees (30 April 2012) 4,209 2,861 In spite of one-time start-up and transformation expenses related to the takeover of the former WISSMACH stores, we were able to achieve a significant improvement in earnings before interest and taxes (EBIT). The EBIT margin climbed from 13.4% in the second quarter of FY 2010/11 to 13.9% in Q2 2011/12, when earnings before interest and taxes (EBIT) totalled EUR 29.3 million. The GERRY WEBER Group s EBIT for the first six months of 2011/12 amounted to EUR

3 Q2 2011/12 Q2 2010/11 H1 2011/12 H1 2010/11 in EUR million Sales Wholesale Retail Earnings figures EBITDA EBITDA margin 15.9% 14.9% 14.6% 13.6% EBIT EBIT margin 13.9% 13.4% 12.5% 11.9% EBT EBT margin 13.7% 13.1% 12.2% 11.5% Net profit of the reporting period

4 NEWS FROM THE COMPANY Another important strategic goal of the GERRY WEBER Group is the internationalisation of the business model and the entry into new markets. Today, GERRY WEBER is a global corporation which has distribution structures in over 60 countries of the world. Our global distribution structures extend from Europe to Russia and the Middle East to Asia and Australia. Local partners sell our stylish, high-quality fashion also in South Africa and North America. Building on our franchised Houses of GERRY WEBER in Canada, we started selling the GERRY WEBER collection in the United States of America at the end of January In keeping with our conservative strategy of entering into new markets, we started with two shop-in-shops in department stores of our partner, Bloomingdale s. Operating a total of 46 stores, Bloomingdale s is certainly one of the best known department store chains in the USA. The GERRY WEBER collection is now also sold in a number of stores of the Dillard s department store chain. Dillard s has a store network in over 200 US locations. Today, a few weeks after the sales start of our GERRY WEBER collection, we can state that our market entry in the USA has been a great success. The two Bloomingdale s stores in Lennox (Atlanta) and Boca Raton (Florida) feature EDI connections and report the revenues and sales of our products on a daily basis. Our fashion products are very much appreciated by US consumers even without a large-scale advertising campaign and a huge advertising budget. This confirms our belief that our fashion is the best advertising medium. Due to the big success of our brand, our collections are meanwhile available at eleven Dillard s stores and further stores will follow. Moreover, we are currently working on our future expansion strategy in the USA together with Bloomingdale s. While we currently have a presence in the USA through our GERRY WEBER core brand, we also see huge potential in the US market for our two other brands, TAIFUN and SAMOON. 3

5 THE GERRY WEBER SHARE The GERRY WEBER share showed a very good performance in the first half of the financial year 2011/12 and outperformed the MDAX benchmark index. Since the end of the financial year on 31 October 2011, the GERRY WEBER share has gained 42.6%. The XETRA closing price on 30 April 2012 was EUR By comparison, the MDAX, which includes the GERRY WEBER share, climbed 19.3% to 10, points on 30 April Shareholders participated not only in the good performance of the share but also benefited from a dividend increase from EUR 0.55 to EUR 0.65 per share. This represents an 18.2% increase on the previous year s dividend. Over the past five years, the dividend has risen by approx. 225%. The ordinary Annual General Meeting of GERRY WEBER International AG was held after the reporting period, on 5 June 2012, in Halle (Westphalia). A vast majority of the roughly 1,100 attending shareholders approved the items on the agenda. Among the most important resolutions was the above-mentioned dividend increase to EUR 0.65 per share. The company will thus distribute a total amount of EUR 29.8 million. The remaining profit of EUR 18.4 million will be carried forward to new account. Moreover the shareholders approved the actions of the Managing Board and the Supervisory Board during the financial year 2010/11. GERRY WEBER share MDAX 4

6 INTERIM GROUP MANAGEMENT REPORT for the first six months of 2011/12 from 1 November 2011 to 30 April 2012 In the second quarter of 2011/12, we once again demonstrated that we continue our growth strategy with great determination. The acquisition of 200 former WISSMACH stores in Germany with effect from 15 March 2012 and the opening of 21 new company-managed Houses of GERRY WEBER only in Q2 2011/12, of which four were opened outside Germany, mean that we once more accelerated the expansion of the Retail segment. In the Wholesale segment, we opened in Q2 19 Houses of GERRY WEBER as well as 148 new shop-in-shops together with our franchising and distribution partners. the actual time of sale of the products in the stores and shops. We are constantly striving to improve our merchandising processes and to optimise them for the benefit of our company and our distribution partners. The Retail segment generated sales revenues of EUR 68.9 million, which represented approx. 32.7% of the Group s second-quarter revenues. The Retail segment s contribution in the full first half of 2011/12 amounted to as much as EUR million or 35.0%, compared to 31.0% at the end of the past financial year. The company-managed Houses of GERRY WEBER contributed almost three quarters, i.e. 74.4%, to the Retail segment s first-half revenues. Our three online shops also showed a good performance and contributed 5.9% to our Retail revenues. The medium-term target for the online shops is a contribution of roughly 10%. Sales performance Following a 7.6% increase in sales revenues in the first quarter of the financial year 2011/12, boosted its revenues by an impressive 12.8% in the second quarter compared to the previous year. The GERRY WEBER Group s sales revenues rose from EUR million in the prior year quarter to EUR million in the second quarter of 2011/2012 (1 Feb April 2012). Group sales revenues for the first half of the current financial year (1 Nov April 2012) totalled EUR million, which represents a year-on-year increase of 10.5%. Online Shops; 5.9% Outlets 15.8% Concession 3.9% Sales split Retail H1 2011/12 HoGWs 74.4% Just like in Q1 2011/12 reported, we postponed delivery dates of part of our collections. The aim of these shifts is to get the delivery date closer to 5

7 The Wholesale segment generated sales revenues of EUR million in the second quarter 2011/12, compared to EUR million in the previous quarter. Accordingly, the segment s contribution to total Group revenues increased from 61.3% to 65.3%. Wholesale revenues in the full first half of 2011/12 rose from EUR million to EUR million. The segment s contribution to Group sales in the first six months of the current financial year amounted to roughly 63.5 %. H1 2011/ / RETAIL Houses of GERRY WEBER Concession Flächen Factory Outlets WHOLESALE Houses of GERRY WEBER Shop-in-Shops 2,495 2,292 Split sales by segments H1 2011/12 Others 1,5% Retail 35,0% Wholesale 63,5% 43 company-managed Houses of GERRY WEBER were opened in the first six months of 2011/12, thereof 20 outside Germany. Moreover, we opened three new concession shops in the department stores of our Spanish distribution partner, El Corte Inglès. At the end of the reporting period, 285 Houses of GERRY WEBER were managed by franchisees, which means that 25 new franchised Houses of GERRY WEBER were opened in H1 2011/12, thereof 20 abroad. The number of shop-in-shops rose by 203 to 2,495 as of the end of the first half of 2011/12. The non-consolidated domestic revenues generated by the GERRY WEBER, GERRY WEBER EDITION, G.W. as well as TAIFUN and SAMOON brands totalled EUR million in H1 2011/12, up 10.9% on the same period of the previous year (EUR million). Domestic brand revenues comprise the revenues generated by our brand companies through sales to the GERRY WEBER Retail segment and our wholesale customers. 6

8 SAMOON 5.0% TAIFUN 17.4% Sales split by brands H1 2011/12 GERRY WEBER 77.6% Our second largest brand, TAIFUN, showed a particularly positive performance, boosting its contribution to total brand revenues from 15.7% in the first quarter to 17.4%. In the first half of the current financial year, the TAIFUN brand generated sales revenues of EUR 54.5 million (previous year: EUR 47.3 million). This positive performance confirms our belief that the TAIFUN brand has great potential. To live up to this positive market estimate and the growing demand, we will convert some 120 of the WISSMACH stores acquired in March 2012 into TAIFUN mono-label stores. As the conversion has already started, we were able to open the first TAIFUN mono-label stores in May The GERRY WEBER core brand and its two sublabels, GERRY WEBER EDITION and G.W., accounted for approx. 77.6% of the total brand revenues in the first six months of the current financial year (H1 2010/11: 78.1%). The GERRY WEBER brands including GERRY WEBER EDITION and G.W. contributed an amount of EUR million. Our brand portfolio is complemented by the SAMOON brand, which accounted for about 5.0% of the total brand revenues in H1 2011/12. The brand for plus sizes generated revenues of EUR 15.5 million, up 6.2% on the previous year. A breakdown of the consolidated first-half revenues by regions shows that Germany accounted for EUR million or 64.8%. The international markets contributed EUR million to total Group revenues. The fact that domestic Group sales increased from 59.9% at the end of FY 2010/11 to 64.8% is due, among other factors, to the acquisition of some 200 former WISSMACH stores as well as the opening of company-managed Houses of GERRY WEBER in Germany. Earnings position We were able to increase our Group revenues by 12.8% to EUR million in the second quarter of 2011/12. Our earnings position improved disproportionately. Earnings before interest and taxes in Q2 2011/12 were up by 16.8% on the prior year quarter to EUR 29.3 million (previous year: EUR 25.1 million). Accordingly, the EBIT margin improved from 13.4% to 13.9% in Q2 2011/12. On a six-month basis, earnings before interest and taxes rose from EUR 40.6 million to EUR 47.0 million, which represents an increase of 15.8%. The EBIT margin climbed from 11.9% in H1 2010/11 to 12.5% in H1 2011/12. The growth rates show that we are well on track to reach our profitability targets for the financial year 2011/12. We expect the EBIT margin to improve by 30 to 40 basis points on the previous year to 14.5% %. Due to the seasonality of our business model and the postponement of the delivery dates, our inventories increased in the first quarter of 7

9 2011/12 (+EUR 24.4 million), which was offset in the following quarter, when inventories were reduced by EUR 22.4 million. A look at the first six months of 2011/12 shows that inventories slightly increased by EUR 2.1 million. Although sales revenues were up by 10.5% on the first half of the previous year, the cost of materials only rose slightly by 7.0% to EUR million. Accordingly, the cost of materials as a percentage of sales improved markedly from 52.1% to 49.5% in H1 2011/12. Besides lower commodity prices, this is primarily attributable to better purchasing terms. The improvement in purchasing terms clearly reflects the success of our flexible sourcing system for the selection of our manufacturing partners. The trend in the cost of materials ratio also reflects the increasing importance of our Retail business. Compared to the first three months of the current financial year (EUR 27.3 million), personnel expenses rose to EUR 30.3 million in the second quarter. The increase is mainly attributable to the expansion of our Retail activities, as a result of which new jobs were created at the newly opened Houses of GERRY WEBER. Also, the personnel expenses for the second quarter of 2011/12 for the first time included the personnel costs for the WISSMACH employees taken over with effect from 15 March The integration of some 850 former WISSMACH employees led to a disproportionate increase in personnel expenses in Q2 2011/12. The same applies to other operating expenses, which were up by 28.6% on the first quarter to EUR 47.6 million in Q2 2011/12. Compared to the full first half of the previous year, other operating expenses increased by 20.2% to EUR 84.5 million (previous year: EUR 70.4 million). With regard to the rise in fixed costs, it should be noted that 83 new Houses of GERRY WEBER were opened in the past nine months alone, which entailed a significant increase in rental expenses. The latter were up by EUR 8.3 million on the second half of the previous year. Compared to the established Houses of GERRY WEBER, these new HOGWs are still making below-average contributions to sales revenues and earnings. Taking into account increased depreciation/amortisation in the amount of EUR 8.1 million (H1 2010/11: EUR 5.8 million), which relates, among other things, to the shop fittings of our Houses of GERRY WEBER, earnings before interest and taxes (EBIT) in the first six months of 2011/12 were up by an impressive 15.8% on the same period of the previous year to EUR 47.0 million. Reflecting the improvement in EBIT, the EBIT margin climbed from 11.9% to 12.5% Due to the scheduled repayment of long-term loans, the financial result improved from EUR -1.4 million to EUR -1.0 million in the first half of the financial year. Earnings before interest and taxes improved from EUR 24.4 million in Q2 2010/11 to EUR 28.8 million in the second quarter of 2011/12. The same applies to six-month EBIT, which climbed from EUR 39.2 million in H1 2010/11 to EUR 46.0 million in the first six months of the current financial year. After income taxes of EUR -8.7 million, the GERRY WEBER Group s net income for Q2 2011/12 climbed to EUR 20.2 million (previous year: EUR 15.7 million). Net income for the first six months amounted to EUR 31.6 million, which represents an increase of 24.1% on the same period of the previous year. 8

10 Accordingly, earnings per share improved from EUR 0.57 to EUR Net worth position On the assets side of the balance sheet for the period ended 30 April 2012, total assets were up by 8.5% to EUR million compared to the end of the financial year 2010/11 (31 October 2011). This is primarily attributable to an increase in fixed assets and current other assets. Property, plant and equipment include the shop fittings of the company-managed Houses of GERRY WEBER. Due to the opening of new company-managed Houses of GERRY WEBER, property, plant and equipment increased by EUR 10.3 million from the end of the financial year 2010/11 to EUR million at the end of H1 2011/12. Intangible assets climbed by EUR 11.2 million to EUR 30.4 million, primarily due to the acquired rights to take over the existing leases on conjunction with the DON GIL and WISSMACH transaction. Investment properties comprise the carrying amount of Hall 30 in Düsseldorf. The building provides exhibition space for various fashion companies and is fully let to external tenants. Construction measures carried out in the first six months of 2011/12 increased the carrying amount of this building from EUR 21.2 million to EUR 25.8 million. inventories increased by a moderate EUR 3.5 million to EUR 92.0 million. Other current assets rose from EUR 11.9 million to EUR 23.5 million at the end of the first half of 2011/12. This is primarily attributable to higher VAT tax refund claims. Liquid funds declined from EUR 90.6 million at the end of the financial year 2010/11 to EUR 85.9 million on the reporting date on 30 April 2012, which is primarily attributable to the takeover of DON GIL and former WISSMACH stores as well as to increased investments in the expansion of our own Retail activities. On the liabilities side of the balance sheet, equity capital rose by another EUR 19.2 million to EUR million, having increased by EUR 13.5 million in Q1 2011/12. Accordingly, the equity ratio stood at 77.0% (31 October 2011: 75.7%). Current and non-current financial liabilities were reduced by EUR 2.9 million (-13.7%) to EUR 18.4 million as of the end of H1 2011/12 due to scheduled repayments. By contrast, current and non-current provisions rose by EUR 5.1 million to EUR 31.7 million, which is primarily attributable to an increase in other provisions. An equity ratio of 77.0% and liquid funds of EUR 85.9 million, which contrast with financial liabilities of EUR 18.4 million and provisions of EUR 31.7 million, mean that the GERRY WEBER Group has a very sound balance sheet structure. Against the background of the expansion of the Retail activities and the takeover of inventories in the context of the WISSMACH transaction, 9

11 Financial assets and investments Due to investments in the expansion of our Retail activities, especially the opening of 43 new company-managed Houses of GERRY WEBER, and the price paid for the acquisitions of the DON GIL and WISSMACH stores and their inventories, liquid funds declined by EUR 4.6 million as of the end of the reporting period (30 April 2012) compared to the end of the previous financial year (31 October 2011). Compared to the first half of the previous year, cash flow from operating activities climbed from EUR 21.9 million to EUR 37.1 million. The strong increase is mainly due to the company s operational sales growth. As a result of the expansion of our business activity, cash outflow from investing activities also increased markedly from EUR 17.5 million in H1 2010/11 to EUR 37.8 million. Reasons for the increased cash outflow include higher investments in fixed and intangible assets, which rose from EUR 10.4 million to EUR 19.0 million. Extensive investments were required primarily in conjunction with the opening of 43 new companymanaged Houses of GERRY WEBER. The purchase price for the former DON GIL and WISSMACH stores also contributed to the higher cash outflow from investing activities in an amount of EUR 14.1 million. Cash outflows from financing activities totalled EUR 2.9 million in the first six months of 2011/12 and included the scheduled repayment of financial loans. The first half of the previous year was influenced by the sale of own shares, which resulted in an inflow of cash of EUR 48.0 million. As a result, cash and cash equivalents declined by EUR 4.6 million to EUR 85.9 million as of the reporting date on 30 April Segment report defines its segments in accordance with its internal organisational and reporting structures. A distinction is thus made between Production and Wholesale of Ladieswear, Retail of Ladieswear and Other Segments. The Production and Wholesale segment comprises all collection development activities, procurement, transport and logistics as well as wholesale distribution. As described above, we began to postpone the dates of deliveries to our customers in the first quarter of 2011/12. The aim of these shifts is to move the delivery date closer to the actual time of sale of the products in the stores and shops. We are constantly striving to improve our merchandising processes and to optimise them for the benefit of our company and our distribution partners Due to the postponement of delivery dates, wholesale revenues in Q1 2011/12 were down by EUR 2.1 million on the same period of the previous year. In the second quarter of 2011/12, the Wholesale segment s revenues increased by EUR 4.6 million to EUR million, thus offsetting part of the postponement. A complete compensation will be realised up to the end of the fiscal year 2011/12. In Q2 2010/11, the Wholesale segment contributed about 65.3% to the GERRY WEBER Group s consolidated sales revenues. 10

12 Even though the Wholesale segment s share declined from 69.5% in H1 2010/11 to 63.5% in H1 2011/12, the segment makes the biggest contribution to the company s revenues. In the first six months of the financial year, the Wholesale segment generated sales revenues of EUR million (previous year: EUR million). Due to the improvement in the cost of materials as a percentage of sales and strict cost management, the Wholesale segment s earnings before taxes (EBT) improved from EUR 30.1 million to EUR 36.9 million in the first half of 2011/12 (+22.7%). At 813, the average number of employees was slightly higher than in the first half of the previous year (794). 25 franchised Houses of GERRY WEBER were opened in the first half of 2011/12, thereof 20 outside Germany. We see further growth potential in our existing foreign markets and will make entries into new markets - such as in the USA at the beginning of the financial year - together with distribution partners. We were able to further accelerate the expansion of our own Retail activities in the second quarter of 2011/12. The takeover of 200 WISSMACH stores in Germany with effect from 15 March 2012 will add roughly 17,000 square metres to our own sales space in Germany till the end of fiscal year 2011/12. Some 170 of the former WISSMACH stores will be converted into GERRY WEBER brand stores, including approx. 120 TAIFUN and roughly 30 SAMOON mono-label stores. Every month, some 40 WISSMACH stores will be closed and converted, which means that the whole conversion exercise should be completed by the end of October Up to this date, the WISSMACH merchandise taken over by our company will be sold in the WISSMACH stores that have not yet been closed or converted. The anticipated investments in the conversion into GERRY WEBER mono-label stores amount to between EUR 16 and 17 million, which will be fully financed internally. Returning to the performance of the Retail segment in the current financial year, our own Retail activities remained our main growth driver in the second quarter of 2011/ new company-managed Houses of GERRY WEBER in the first quarter were followed by another 21 new stores in Q2, thereof 20 outside Germany. Total sales in the Retail segment increased from EUR 51.3 million in Q2 2010/11 to EUR 68.9 million in the second quarter of 2011/12. This was due to the new stores opened in the previous months but also to a 4.3% rise in like-for-like sales (full H1 2011/12) and represented an increase of 34.4% compared to the prior year quarter. The WISSMACH merchandise sold by our company contributed approx. EUR 6.1 million to the above amount. A look at the full first half of 2011/12 shows that the Retail segment s sales revenues increased by 30.9% from EUR million to EUR million. 11

13 The other segments contributed EUR 5.3 million Retail sales by quarter (H1 2010/11: EUR 3.3 million) or 1.5% to total Group sales. The increase is due, among other things, to the rental income from Hall 29 and 30. An average of 550 people were employed in this segment (H1 2010/11: 544 people). Q1 2010/11 Q2 2010/11 Q3 2010/11 Q4 2010/11 Q1 2011/12 Q2 2011/12 OPPORTUNITY AND RISK REPORT In spite of the one-time start-up expenses for the opening of new company-managed Houses of GERRY WEBER and the increase in personnel and other operating expenses resulting from the expansion of the Retail activities the Retail segment s EBT climbed from EUR 5.5 million to EUR 6.2 million in H1 2011/12. In this context, it should be noted that recently opened Houses of GERRY WEBER make a lower contribution to sales and earnings than established HoGWs. In accordance with the comprehensive investments in the expansion of the Retail operations, the segment s assets increased from EUR 85.8 million in the first half of the previous year to auf EUR million. At the same time, liabilities rose from EUR million to EUR million. The average headcount of the Retail segment grew from 1,529 in the first six months of the previous year to 2,445. The 59.9% increase in the average headcount reflects not only the Retail segment s operational growth but also the takeover of some 850 employees in the context of the WISSMACH acquisition. Just like any business model, the business activity of is exposed to risks and opportunities. The Managing Board of has installed appropriate risk management processes and control systems in the Group to avoid risks as well as to manage existing risks and initiate appropriate counter-measures. Through ongoing analyses and market observations, opportunities are identified early on with a view to developing strategies and measures for exploiting them at an early stage. For a detailed description of our risk management system, the control systems for the accounting processes and the opportunities and risks in the GERRY WEBER Group, please refer to the risk report in the 2010/11 Annual Report. The statements made in this risk report remain valid. Since the beginning of the fiscal year 2011/12, no material changes have occurred regarding the risks to our company s future. Based on current knowledge, there are no risks that could jeopardise the continued existence of the GERRY WEBER Group. 12

14 POST-BALANCE SHEET EVENTS No material events influencing the course of business have occurred since the end of the reporting period (1 November April 2012). FORECAST REPORT The economic situation in Europe continues to be influenced materially by the sovereign debt crisis in several European countries. The GERRY WEBER Group generates EUR million or 64.8 of its sales revenues in Germany. Round about 30% of the export sales of EUR million were generated in the European Union. However, the Group generates less than 3% in the countries that have been hit hardest by the crisis such as Greece, Spain or Italy. Especially in our biggest market, Germany, the consumer climate has improved somewhat in the past months, according to the GfK consumer climate index, which indicates a stable tendency also for the summer months. So far, the elections in France and Greece have not had any negative impact on the economic expectations of the survey respondents. Right on the contrary, economic expectations even picked up moderately in May 2012, all the more so as inflation fears have declined. Against the background of stable labour market figures and the low jobless rate in Germany, disposable incomes are expected to increase moderately, also in view of the latest wage agreements. Due to our regional diversification inside and outside Europe, the high percentage of revenues generated in Germany and the good business performance in the first six months of 2011/12, we expect our business trend to remain positive. At present, we see no signs of declining demand in our markets, which supports our sales and earnings forecast for FY 2011/12. The current financial year will clearly be a year of growth both in our Retail segment and in our Wholesale segment. We reported on the takeover of some 200 stores from WISSMACH Modefilialen GmbH in the management report of the present interim financial statements. Some 170 of these stores are to be converted into TAIFUN and SAMOON mono-label stores and Houses of GERRY WEBER. In view of the WISSMACH takeover on 15 March 2012, we have raised our sales forecast for the current financial year from EUR 775 million to EUR 795 million. The investments required for the conversion into TAIFUN and SAMOON mono-label stores and Houses of GERRY WEBER and the one-time start-up expenses will weigh on our bottom line. In spite of these extraordinary charges, we expect the EBIT margin to climb from the previous year s 14.2% to 14.5% or 14.6%. We assume that the converted WISSMACH stores will contribute between EUR 45 million and 50 million to sales revenues and make a positive earnings contribution already in the financial year 2012/13. This means that the WISSMACH takeover will have paid off after only one year. Besides the conversion of the former WISSMACH stores, some 75 company-managed Houses of GERRY WEBER will be opened in the financial year 2011/12. As many as 43 stores were opened in the first half of 2011/12, thereof 20 Houses of GERRY WEBER abroad 13

15 Our Wholesale segment will also continue to grow. New Houses of GERRY WEBER and shopin-shops will be opened together with our franchising and distribution partners primarily abroad, e.g. in Russia, the Middle East and the Benelux countries. In February 2012, the first two shop-in-shops were opened in department stores of our distribution partner Bloomingdale s in the USA. Sales of our GERRY WEBER collection had an excellent start in these shops as well as in the 11 Dillard s department stores in the USA. We are currently negotiating further new shop openings and other possibilities of extended cooperation in the USA with both partners. In the short and medium term, we see further sales potential in the USA for the GERRY WEBER brand as well as for the TAIFUN and SAMOON brands. Against the background of the growth opportunities both in our German home market and in international markets, we continue to project strong sales growth as well as an improvement in earnings in line with the above targets. We will continue to push ahead with our growth strategy in the coming months. 14

16 CONSOLIDATED INCOME STATEMENT (IFRS) in EUR'000 First Half 2011/12 (1 November April 2012) 2. Quarter 2011/12 (1 February - 30 April 2012) Q2 2011/12 Q2 2011/12 H1 2011/12 H1 2010/11 in KEUR Sales 210, , , ,439.7 Other operating income 4, , , ,272.8 Changes in inventories -22, , , ,141.4 Cost of materials -81, , , ,769.7 Personnel expenses -30, , , ,381.0 Depreciation/Amortisation -4, , , ,831.3 Other operating expenses -47, , , ,351.6 Other taxes OPERATING RESULT 29, , , ,572.7 Financial result Income from long-term loans Interest income Writedowns on financial assets Incidential bank charges Interest expenses , , ,375.9 RESULTS FROM ORDINARY ACTIVITIES 28, , , ,196.8 Taxes on income Taxes of the reporting period -9, , , ,405.3 Deferred taxes , , , ,709.5 NET INCOME OF THE REPORTING PERIOD 20, , , ,487.2 Earnings per share (basic)

17 CONSOLIDATED BALANCE SHEET TO IFRS in EUR'000 as of 30 April 2012 ASSETS H1 2011/ /11 in KEUR 30. April Oct NON-CURRENT ASSETS Fixed Assets Intangible assets 30, ,270.7 Property, plant and equipment 127, ,596.5 Investment properties 25, ,246.4 Financial assets 2, ,052.5 Other non-current assets Trade receivables Other assets Income tax claims 2, ,661.5 Deferred tax assets 3, , , ,598.1 CURRENT ASSETS Inventories 92, ,526.7 Receivables and other assets Trade receivables 55, ,829.5 Other assets 23, ,925.6 Income tax claims Cash and cash equivalents 85, , , ,359.6 TOTAL ASSETS 450, ,

18 CONSOLIDATED BALANCE SHEET TO IFRS in EUR'000 as of 30 April 2012 EQUITY AND LIABILITIES H1 2011/ /11 in KEUR 30. April Oct EQUITY Share capital 45, ,906.0 Capital reserve 102, ,386.9 Retained earnings 105, ,341.7 Accumulated other comprehensive income/loss acc. to IAS Exchange differences Accumulated profits 92, , , ,917.2 NON-CURRENT LIABILITIES Provisions for personnel Other provisions 5, ,105.4 Financial liabilities 12, ,214.3 Deferred tax liabilities 5, , , ,355.1 CURRENT LIABILITIES Provisions Tax liabilities 2, ,514.4 Provisions for personnel 12, ,388.7 Other provisions 10, ,223.6 LIABILITIES Financial liabilities 6, ,132.1 Trade payables 28, ,566.8 Other liabilities 19, , , ,685.5 TOTAL EQUITY AND LIABILITIES 450, ,

19 STATEMENT OF CHANGES IN GROUP EQUITY (IFRS) IN EUR' Half 2011/12 (01 November April 2012) in KEUR Capital stock Capital Retained Accumulated Exchange Accumulated Equity reserves earnings other comprehensdifferences profits income/loss As of 1 November , , , , ,917.1 Sale of own shares 0.0 Allocation of retained earnings of the AG from the net income of the reporting period 0.0 Adjustments of exchange differences Forward exchange contracts not affecting income 1, ,241.4 Net income of the reporting period 31, ,633.5 As of 30 April , , , , ,599.7 in KEUR Capital stock Capital Retained Accumulated Exchange Accumulated Equity reserves earnings other comprehensdifferences profits income/loss As of 1 November ,317 45,039 98,295-3, , ,524 Sale of own shares 1,636 57,348 58,984 Allocation of retained earnings of the AG from the net income of the reporting period 0 Adjustments of exchange differences Forward exchange contracts not affecting income -4,073-4,073 Net income of the reporting period 25,488 25,488 As of 30 April , ,387 98,295-7, , ,068 18

20 SEGMENT REPORTING BY DIVISIONS (IFRS) in EUR' Quarter 2011/12 (1 February April 2012) Q2 2011/12 Ladiesware Ladiesware Consolidated Total production and Retail entries and in KEUR wholesale other segments Sales by segment 137,838 68,891 4, ,985 EBT (Earnings Before Tax) 23,495 3,254 2,080 28,829 Depreciation of property, plant and equipment 765 1,611 1,820 4,196 Interest income Interest expenses Assets 172, , , ,114 Liabilities 108, , , ,284 Investments in non-current assets 1,370 5,270 14,762 21,402 Number of employees (average) 813 2, ,808 Q2 2010/11 Ladiesware Ladiesware Consolidated Total production and Retail entries and in KEUR wholesale other segments Sales by segment 133,273 51,256 2, ,988 EBT (Earnings Before Tax) 18,512 3,000 2,931 24,443 Depreciation of property, plant and equipment 598 1,087 1,151 2,836 Interest income Interest expenses Assets 143,284 85, , ,746 Liabilities 106, , , ,678 Investments in non-current assets 1,171 1,743 10,694 13,608 Number of employees (average) 789 1, ,861 19

21 SEGMENT REPORTING BY DIVISIONS (IFRS) in EUR'000 First Half 2011/12 (1 November April 2012) First Half 2011/12 Ladiesware Ladiesware Consolidated Total production and Retail entries and in KEUR wholesale other segments Sales by segment 238, ,794 5, ,037 EBT (Earnings Before Tax) 36,930 6,189 2,835 45,954 Depreciation of property, plant and equipment 1,469 2,978 3,641 8,088 Interest income Interest expenses 1, Assets 172, , , ,114 Liabilities 108, , , ,284 Investments in non-current assets 1,736 8,166 19,452 29,354 Number of employees (average) 813 2, ,808 First Half 2010/11 Ladiesware Ladiesware Consolidated Total production and Retail entries and in KEUR wholesale other segments Sales by segment 236, ,658 3, ,440 EBT (Earnings Before Tax) 30,097 5,497 3,603 39,197 Depreciation of property, plant and equipment 1,159 2,160 2,512 5,831 Interest income Interest expenses ,076 Assets 143,284 85, , ,746 Liabilities 106, , , ,679 Investments in non-current assets 1,409 2,810 13,958 18,177 Number of employees (average) 789 1, ,861 20

22 CONSOLIDATED CASH FLOW STATEMENT (IFRS) in EUR'000 First Half 2011/12 (1 November April 2012) H1 2011/12 H1 2010/11 in KEUR Operating result 46, ,572.7 Depreciation / amortisation 8, ,831.3 Profit / loss from the disposal of fixed assets Increase / decrease in inventories Increase / decrease in trade receivables 1, ,983.2 Increase / decrease in other assets that do not fall under investing or financing activities -9, Increase / decrease in provisions 5, ,248.1 Increase / decrease in trade payales -6, ,121.0 Increase / decrease in other liabilities that do not fall under investing or financing activities 5, ,080.3 Income tax payments -14, ,677.9 Other non-cash effective income/expenses 0.0-2,050.0 CASH OUTFLOWS FROM OPERATING ACTIVITIES 37, ,911.5 Income from investments Interest income Incidential bank charges Interest expenses ,076.9 CASH OUTFLOWS FROM CURRENT OPERATING ACTIVITIES 36, ,535.5 Proceeds from the disposal of properties, plant, equipment and intangible assets Cash outflows for investments in property, plant, equipment and intangible assets -18, ,407.2 Cash outflows for the acquisition of fully consolidated companies and other business units less cash and cash equivalents acquired -14, Cash outflows for investments in investment properties -4, ,770.0 Proceeds from the disposal of financial assets Cash outflows for investments in financial assets ,752.5 CASH OUTFLOWS FROM INVESTING ACTIVITIES -37, ,473.8 Proceeds of the sale of own shares ,983.7 Raising / repayment of financial liabilities -2, ,022.4 CASH OUTFLOWS / INFLOWS FROM FINANCING ACTIVITIES -2, ,961.3 Changes in cash and cash equivalents -4, ,023.0 Cash and cash equivalents at the beginning of the reporting period 90, ,917.3 CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 85, ,

23 Explanatory notes on the interim consolidated financial statements of for the period ended 30 April 2012 General information and accounting basis is a listed joint stock company headquartered in Neulehenstraße 8, D Halle (Westphalia/Germany). The present abridged consolidated financial statements were prepared pursuant to section 37x para. 3 WpHG in conjunction with section 37w para. 2 WpHG and in accordance with the International Financial Reporting Standards (IFRS) and the related interpretations by the International Accounting Standards Board (IASB) for interim financial reporting such as they have been adopted by the European Union. Accordingly, these financial statements do not contain all information and notes that are required for year-end consolidated financial statements pursuant to IFRS. The interim consolidated financial statements for the first six months of 2011/12 (1 November April 2012) were prepared in accordance with IAS 34 Interim Financial Reporting and were not reviewed by the auditors. The accounting and valuation methods and the principles of consolidation have basically remained unchanged compared to the latest consolidated financial statements for the year ended 31 October The interim consolidated financial statements for the first three months of 2011/12 were prepared in Euros. The Managing Board is of the opinion that the present unaudited interim consolidated financial statements contain all necessary information to give a true and fair view of the business performance and the earnings position in the reporting period. The results achieved in the first six months of the financial year 2011/12 do not necessarily provide an indication as to the future results. Pursuant to IAS 34 Interim Financial Reporting, the Managing Board must make discretionary decisions, estimates and assumptions in the preparation of the interim consolidated financial statements. These may influence the application of accounting standards and the recognition of assets and liabilities as well as income and expenses. The actual results may differ from these estimates in individual cases. The present interim consolidated financial statements comprise the interim financial statements of and all its subsidiaries for the period ended 30 April The subsidiaries are fully consolidated. As of the reporting date, the basis of consolidation comprises 20 subsidiaries. 22

24 On 16 November 2011, the GERRY WEBER Group acquired the right to take over all trademark and intellectual property rights from the liquidator of bankrupt DON GIL Textilhandel GmbH, Vienna (Austria). These include, in particular, leases, inventories and trademark rights. The purchase price of EUR 6.1 million was paid from GERRY WEBER International AG s own financial resources. The acquired stores contributed approx. EUR -1.0 million to earnings after income taxes in the first half of 2011/12 and generated sales revenues of EUR 2.6 million in the first six months of 2011/12. The following assets and liabilities (no financial liabilities) were taken over: Carrying amount Recognised upon in EUR millions in acc. IFRS acquisition Intangible Assets Property, plant and equipment Current assets TOTAL ASSETS Non-current liabilities Current liabilities TOTAL LIABILITIES Net assets Acquisition costs 6,1 Goodwill Trademark rights as well as the right to take over all existing rental contracts 2 The determination of the fair value of the assets and liabilities has not been completed yet. Pursuant to IFRS 3.45 provisional values have therefore been recognised. With effect from 15 March 2012, the GERRY WEBER Group acquired the right to take over the existing leases as well as the inventories and shop fittings of WISSMACH Modefilialen GmbH in Germany. The purchase price of EUR 8.7 million was paid from GERRY WEBER International AG s own financial resources. The acquired stores contributed approx. EUR 0.1 million to earnings after income taxes in the first half of 2011/12 and generated sales revenues of EUR 6.1 million in the first six months of 2011/12. The following assets and liabilities (no financial liabilities) were taken over: 23

25 Carrying amount Recognised upon in EUR million in acc. IFRS acquisition Intangible assets Property, plant and equipment Current assets TOTAL ASSETS Non-current liabilities Current liabilities TOTAL LIABILITIES Net assets Acquisition costs 8.7 Goodwill Software licenses as well as the right to take over all existing rental contracts 2 The determination of the fair value of the assets and liabilities has not been completed yet. Pursuant to IFRS 3.45 provisional values have therefore been recognised. Currency translation The functional currency of is the euro. The financial statements of the consolidated Group companies prepared in foreign currencies are translated according to the concept of the functional currency in compliance with IAS 21 "The Effects of Changes in Foreign Exchange Rates". Given that the consolidated Group companies primarily do business in the economic environment of their respective country, the functional currency is always identical with each company's local currency. Accordingly, assets and liabilities are translated at the closing rate, while income and expenses are translated at the average exchange rate. Investment properties Investment properties are accounted for pursuant to IAS 40. They are recognised at cost and written off using the straight-line method over a useful live of 50 years. This balance sheet item comprises one building in Düsseldorf ( Hall 30 ), which is fully let to external fashion companies. The property was not used by the company itself in the reporting period. Following 24

26 construction work carried out on the building in the first six months of the current financial year, the carrying amount of the investment property increased from EUR 21.2 million at the end of the financial year 2010/11 (31 October 2011) to EUR 25.8 million at the end of the first half of 2011/12. Earnings per share Earnings per share are determined on the basis of the net income for the period after taxes that is attributable to the shareholders of and the average number of shares outstanding in the reporting period. The average number of shares outstanding is determined on a pro-rata temporis basis as shown below. To facilitate comparison, the figures for first half 2010/11 were adjusted to reflect the issue of free shares. 1. Hj. 2011/12 1. Hj. 2010/ November x 1/ x 1/12 December x 1/ x 1/12 January x 1/ x 1/12 February x 1/ x 1/12 March x 1/ x 1/12 April x 1/ x 1/12 = shares = shares Accordingly, earnings per share amounted to EUR 0.69 in the first half of 2011/12 (1HJ 2010/11: EUR 0.57) Segment reporting The segmentation of the GERRY WEBER Group results from the internal organisational and reporting structure and is based on the production units Ladieswear and Wholesale, Retail of Ladieswear and Other Segments. Secondary segment reporting is based on geographical segments. For purposes of segment reporting by business segments, the Production and Wholesale segment comprises the GERRY WEBER brand and its two sublabels, GERRY WEBER EDITION and G.W., and the TAIFUN brand as well as the SAMOON brand. The Retail segment comprises the domestic and international HOUSES OF GERRY WEBER, the factory outlets as well as the online shops. 25

27 Post-balance sheet events No transactions or events occurred after the end of the reporting period with significant consequences for the course of the business. Responsibility statement To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, we declare that the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and that the interim management report of the Group includes a fair review of the performance of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year. Halle/Westphalia, 12 June The Managing Board - Gerhard Weber Doris Strätker Dr. David Frink 26

28 Calendar of financial events Publication of the First Half Year Reporting 2011/12 14 June 2012 Analyst Conference 14 June 2012 Publication of the Nine Month Reporting 2011/12 14 September 2012 End of fiscal year 2011/12 31 October 2012 Investor Relations contact: Investor Relations Department Claudia Kellert Neulehenstraße 8 D Halle / Westphalia Germany Phone: c.kellert@gerryweber.com Internet: Disclaimer This interim report contains forward-looking statements that are based on assumptions and/or estimates by the management of. While it is assumed that these forward-looking statements are realistic, no guarantee can be given that these expectations will actually materialise. 27