Struggling German fashion retailer Gerry Weber says the losses incurred in its last financial year were wider than it reported in December, reflecting a EUR44.2m (US$50.5m) impairment – the vast majority of which it says is related to its core Hallhuber brand.
In a statement, the retailer said the preliminary results for its 2017/18 financial year, published on 7 December, have been adjusted following the presentation of a new business plan for the Hallhuber segment, and reflect valuation allowances for the Norwegian and Finish subsidiaries of the retail segment.
As a result, Gerry Weber has reported a EUR192.3m loss for the period, with earnings impacted by non-cash provisions for restructuring measures and consulting costs of EUR63.3m, as well as extraordinary depreciation and write-downs of EUR113.5m.
This compares to a loss of EUR148.1m that was previously published, with earnings impacted by non-cash provisions for restructuring measures and consulting costs of EUR63.3m, as well as extraordinary depreciation and write-downs of EUR69.3m.
The German fashion house reported a profit of EUR10.3m the year before.
“We are aware, that the adjustments of our preliminary results for the financial year 2017/18 may result in irritations”, said Florian Frank, member of the managing board and chief restructuring officer for Gerry Weber International AG. “It is however of outmost importance to us to immediately react in full transparency and consequence to changes, to lay a strong and trusting foundation for the future of the company.”
Last month the retailer said it is to close 230 retail spaces and start reducing its workforce nationally and internationally.
It will release its final 2017/18 results on 28 February 2019.