• Q3 profit of EUR11.5m, down from EUR12.8m
  • Company blamed poor weather for decline 
  • Sales increased 5.9% to EUR189m

German women's wear retailer Gerry Weber has lowered its full-year outlook again, blaming poor weather and the cost of opening new stores for a 10.2% decline in profit during the third quarter.

Net income reached EUR11.5m (US$15.3m) during the third quarter, compared to EUR12.8m in the same period of the prior year. Sales, meanwhile, increased 5.9% to EUR189m from EUR178.4m last year.

Year-to-date net income was EUR40.8m, down 8.3% from EUR44.5m in the previous year. Sales rose 6.9% to EUR592.8m from EUR554.4m last year, which the group attributed to the expansion of its retail space.

Gerry Weber yesterday (12 September) said its business model was "adversely affected" by poor weather conditions between November last year and April this year.

"The mild winter made it difficult to sell autumn/winter apparel and was followed by a virtually unprecedented cold spell in the spring, due to which sales of the summer apparel started only in June and July," it added.

The company now expects group sales revenues to increase by 6-7% to EUR850m, although this is down from its previous guidance of EUR860-870m. Earnings before interest and taxes are forecast at EUR105m, compared to earlier expectations of EUR120m.