gerry weber

nine monThs reporT 2011/12

Inter Im report to the th Ird quarter 2011/12

REVIEW OF THE FIRST NINE MONTHS OF THE FINANCIAL YEAR 2011/12

At the nine-month stage of the current financial year, GERRY WEBER International AG is well on track

to reach the targets set for 2011/12. In view of the good business performance we slightly increase our

given sales target for the fiscal year 2011/12 from EUR 795 million to EUR 800 million. We will maintain

our EBIT margin guidance between 14.5% and 14.6% for the current financial year 2011/2012.

In contrast to the overall market trends in summer

2012, GERRY WEBER International AG showed

a positive performance also in the third quarter of

2011/12 (1 May 2012 – 31 July 2012). Sales

revenues for the third quarter increased by an

impressive 21.9% on the previous year. This is

mainly attributable to the conversion and re-

opening of the WISSMACH stores as well as the

newly opened Houses of GERRY WEBER. As

announced in the second quarter of 2011/12,

many of the WISSMACH stores acquired with

effect from 15 March 2012 were converted into

TAIFUN and SAMOON by GERRY WEBER

mono-label stores already between May and July

2012.

A look at the first nine months of the current

financial year shows that sales revenues were up

by 13.9% on the same period of the previous

year. The contribution made by the Retail

segment to total Group sales during the nine-

month period increased from 32.1% to 38.6%.

Sales revenues

Slightly increase of our given sales target from EUR 795 mn to EUR 800 mn (+13.8%)

EBIT margin

Increase EBIT margin to 14.5% - 14.6% (previous year: 14.2%)

Retail Open 75 company-managed Houses of GERRY WEBER

Conversion former WISSMACH stores till end of fiscal 2011/12

Wholesale Continue the international expansion strategy in the Wholesale segment

Online shops & licenses

Increase sales revenues from online activities by at least 15% and expand licensing activities

Sales up 13.9% on previous year to EUR 554.4 m

EBIT margin up by 30 basis points to 12.0%

56 new company-managed Houses of GERRY WEBER opened, thereof 26 outside Germany as well as 69 mono-label stores (former WISSMACH shops)

33 franchised Houses of GERRY WEBER opened, thereof 25 outside Germany. First shop-in-shops in the USA.

Sales revenues from online activities increase by 40% to EUR 12.2 million. New licensing agreements for lifestyle jewellery and footwear signed.

TARGET FOR FULL YEAR AFTER NINE MONTHS OF 2011/12

GERRY WEBER International AG Report of the first nine month 2011/12

1

Sales of the WISSMACH merchandise taken

over with effect from 15 March 2012 contributed

about EUR 14.0 million to the Retail segment’s

sales revenues. Wholesale revenues climbed

from EUR 325.5 million to EUR 332.6 million

(+2.2%).

The inclusion of the former WISSMACH stores in

the consolidated financial statements of the

GERRY WEBER Group had an impact on the

figures for the third quarter 2011/12. On the one

hand, the remaining products of the WISSMACH

Group were sold in the acquired stores; on the

other hand, each store had to be closed for about

six weeks for the conversion.

As a result, increased expenses resulting from

the takeover, especially personnel expenses and

rents, contrasted with below-average revenues

from the acquired stores. The negative impact on

the operating income due to the named effects

amounted some EUR 1.0 million in Q3 2011/12.

Due to these extraordinary charges, the third-

quarter EBIT margin was down by a moderate 20

basis points on the previous year to 11.0%. In

absolute figures, however, earnings before

interest and taxes (EBIT) increased by a strong

20.2% to EUR 19.7 million (Q3 2010/11: EUR

16.4 million).

In spite of the extraordinary effects mentioned

above, the EBIT margin for the first nine months

of 2011/12 climbed from 11.7% to 12.0%.


2

Net income for the third quarter amounted to

EUR 12.8 million after taxes, which translates

into earnings per share of EUR 0.28 for Q3

2011/12. The GERRY WEBER Group’s net

income for the first nine months of the year

totalled EUR 44.5 million, which represents an

increase of 23.5% on the previous year.

Accordingly, earnings per share climbed from

EUR 0.78 to EUR 0.97 at the nine-month stage of

the current financial year.

In view of the good business performance we

slightly increase our given sales target for the

fiscal year 2011/12 from EUR 795 million to EUR

800 million. We will maintain our EBIT margin

guidance between 14.5% and 14.6% for the

current financial year 2011/2012.

* 9M 2011/12 inclusive Cash outflows for the acquisition of fully consolidated companies

(EUR 14.1 million)


3

COMPANY NEWS – INSIDE GERRY WEBER

“The opening of the GERRY WEBER Day Care Centre for employees’ kids is a demonstration of our social responsibility towards our staff,” Gerhard Weber, Chairman of the Managing Board.

Being an international fashion and lifestyle group

as well as an important employer in the region, it

goes without saying that we are committed to

responsible and sustainable corporate

governance. We take pleasure in informing you

about our latest project in this interim report.

Apart from promoting training and further

education measures, our human resources policy

also pursues the important goal of assisting

employees in balancing their working and family

lives. Flexible working hours and a variety of part-

time working schemes have formed part of the

working time models offered by GERRY WEBER

for many years. Since August 2012 our

employees are offered the possibility of putting

their children in the GERRY WEBER Day Care

Centre which is located close to their place of

work.

The GERRY WEBER Day Care Centre is part of

the company plant and comprises a net useful

area of some 3,500 square metres. A pre-existing

half-timbered house has been completely

refurbished and redesigned as a bright open-plan

space. This building houses the entrance area,

the administrative offices as well as the centre’s

modern kitchen. The adjoining newly built

complex is equally light flooded and comprises

six group rooms. The two interconnected


4

buildings are heated using geothermal energy,

just like the GERRY WEBER head office building.

This, too, demonstrates that the protection of the

environment is not merely a buzzword for us but

constitutes a firm element of our corporate

culture.

The generously laid out outdoor facilities of the

GERRY WEBER Day Care Centre offer a number

of genuine highlights including a playground, a

racetrack for the popular “Bobby Car“ ride-on

cars, a tree house and a children’s zoo. In

addition, a pre-existing barn has been converted

into an indoor adventure playground.

By creating this day care centre, the GERRY

WEBER Group not only demonstrates the family

focus of its human resources policy but also

improves the opportunities for many mothers

rejoining the workforce. In times of demographic

change and increasing competition for qualified

labour, the GERRY WEBER Group believes it is

well positioned for the future thanks to such

measures as the opening of a day care centre

close to parents’ place of work as well as the

company’s flexible working time models.


5

The GERRY WEBER SHARE The GERRY WEBER share showed a very

positive performance also in the third quarter of

2011/12, with a new all-time high of EUR 34.55

reached on 19 July 2012 The performance of the

share between May and July 2012 clearly reflects

its stability also in phases of increased market

volatility.

After the end of the financial year on 31 October

2011, the GERRY WEBER share gained 56.1%

and closed at EUR 33.48 (Xetra) on 31 July 2012.

By contrast, the MDAX share, in which the

GERRY WEBER share is listed, gained 24.0%

and closed at 10,826.26 points on 31 July 2012.

We clearly expanded our investor relations

activities, especially in the past nine months, and

presented the GERRY WEBER Group’s equity

story to both institutional investors and private

shareholders. The company participated in six

capital market conferences in Germany and

abroad and informed the financial community of

the Group’s performance on eight roadshow

days.

MDAX

GWI share


6

INTERIM GROUP MANAGEMENT REPORT for the first nine months of 2011/12

from 1 November 2011 to 31 July 2012

Sales revenues in the amount of EUR 554.4

million and EBIT of EUR 66.7 million mean that

we are well on track to reach the targets we have

set ourselves for the full year 2011/12 or

respectively exceed the given sales target slightly

from EUR 795 million to EUR 800 million.

Compared to the same period of the previous

year (1 November - 31 July), sales revenues

increased by 13.9% and net income by 23.5% to

EUR 44.5 million, which shows that our company

is clearly on the growth track.

Sales performance

Having climbed by 7.6% in Q1 and by 12.8% in

Q2, sales revenues increased by an impressive

21.9% on the previous year in the third quarter.

This is mainly attributable to the conversion and

re-opening of the WISSMACH stores and the

newly opened Houses of GERRY WEBER. As

announced at the time of the acquisition, many of

the WISSMACH stores taken over with effect

from 15 March 2012 were converted into TAIFUN

and SAMOON mono-label stores already

between May and July 2012.

Group sales revenues climbed from EUR 146.4

million in the third quarter of the previous year to

EUR 178.4 million in Q3 2011/12 (1 May – 31

July 2012).

Group sales revenues for the first nine months of

the current financial year (1 November 2011 – 31

July 2012) totalled EUR 554.4 million, up 13.9%

on the first nine months of the previous year. The

sharp increase in sales revenues is attributable,

among other things, to the revenues generated

by the Houses of GERRY WEBER opened in the

second half of 2011 and the first half of 2012 As

described above, the rise in sales revenues is

partly attributable to the conversion and re-

opening of 69 former WISSMACH stores.

Performance of the Retail segment

Reflecting the ongoing expansion, the Retail

segment’s sales revenues increased to EUR 82.5

million in the third quarter of the financial year

(Q3 2010/11: EUR 55.4 million). This represents

an increase of 48.9% on the third quarter of the

previous year.

Retail revenues in the first nine months increased

from EUR 156.0 million in the previous year to

EUR 214.3 million in the current financial year.

The 37.3% increase is mainly the result of the

consistent implementation of the segment’s

expansion strategy. Like-for-like sales for the

nine-month period increased by 3.9%. The

increase in sales revenues is also reflected in the

Retail segment’s share in total Group sales,

which rose from 31.0% end of last fiscal (as of 31

October 2011) to 38.6%. The mid- respectively

long-term target is a share of roughly 50%, i.e. a

balanced ratio between Retail and Wholesale

revenues.

A breakdown of the Retail sales by distribution

channels shows that the company-managed

Houses of GERRY WEBER and mono-label

stores contributed about 75% to the segment’s

total sales in the first nine months of 2011/12. Our

online shops also showed a positive

performance, contributing approx. EUR 12.2

million to sales. The online shops thus accounted


7

for 5.7% of total Retail revenues. The medium-

term target is to increase this share to about 10%.

Performance of the Wholesale segment

In Q3 2011/12, the Wholesale segment

generated sales revenues of EUR 93.7 million, up

5.3% on the previous year’s EUR 89.0 million.

Sales revenues in the Production and Wholesale

segment totalled EUR 332.6 million for the full

nine-month period, compared to EUR 325.5

million in 9M 2010/11.. In spite of the 2.2%

increase on the prior year, the Wholesale

segment’s contribution to total Group revenues

declined from 67.5% to 60.0% as of 31 July 2012.

The reduction is due to the above-average

increase in Retail revenues.

Distribution channels

56 new Houses of GERRY WEBER that are

managed by the company itself, i.e. belong to the

Retail segment, were opened in the first nine

months of the financial year, about half of which

are located outside Germany. As described

above, the number of mono-label stores

increased by 69 from 29 due to the conversion

and re-opening of the former WISSMACH stores.

As a result, there were a total of 362 own stores

(Houses of GERRY WEBER and mono-label

stores) as of the end of the reporting period.

In addition to these stores, new franchised

Houses of GERRY WEBER were opened, most

of them abroad. Their number increased by 33

over the past nine months, of which 25 were

opened outside Germany. This means that a total

of 285 Houses of GERRY WEBER were run by

franchisees as of the end of the reporting period

(31 July 2012).


8

The number of shop-in-shops increased by 277 to

2,569 in the first nine months of the current

financial year.

Brand revenues

The non-consolidated domestic revenues of the

GERRY WEBER, GERRY WEBER EDITION,

G.W. as well as TAIFUN and SAMOON brands

totalled EUR 442.2 million in the first nine months

of 2011/12, up 11.7% on the same period of the

previous year (EUR 395.8 million). Domestic

brand revenues comprise the revenues

generated by our brand companies through sales

to our wholesale customers and the GERRY

WEBER Retail segment.

The GERRY WEBER core brand and its two

sublabels, GERRY WEBER EDITION and G.W.,

accounted for approx. 77.9% of the total brand

revenues in the first nine months of the current

financial year (9M 2010/11: 78.9%). The GERRY

WEBER brands including GERRY WEBER

EDITION and G.W. contributed an amount of

EUR 344.6 million

Our second largest brand, TAIFUN, showed a

particularly positive performance, boosting its

contribution to total brand revenues from 16.1%

in the prior-year period ended 31 July to 17.3%.

In the first nine months of the current financial

year, the TAIFUN brand generated sales

revenues of EUR 76.4 million (9M 2010/11: EUR

63.8 million). This gratifying 19.7% increase

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 as many as 65 TAIFUN mono-

label stores between May and July 2012.

Our brand portfolio is complemented by the

SAMOON brand, which accounted for about 4.8%

of the total brand revenues in the first nine

months of 2011/12. The brand for plus sizes

generated revenues of EUR 21.2 million, up 7.6%

on the previous year.


9

A breakdown of the consolidated nine-month

revenues by regions shows that Germany

accounted for EUR 370.1 million or 66.7%,

compared to 64.5% in the same period of the

previous year. The growth in domestic revenues

is not least attributable to the above-mentioned

acquisition of the WISSMACH stores in Germany

and the newly opened Houses of GERRY

WEBER.

The international markets contributed EUR 184.4

million to total Group revenues. In the coming

months, we will continue to grow, both by opening

new company-managed stores and by expanding

our network of franchised stores.

Earnings position

Q3 2011/12

Although business slackened in the summer for

weather-related reasons, the GERRY WEBER

Group increased its Group sales by 21.9% to

EUR 178.4 million in the third quarter. Net income

for the period increased in sync by 21.9% to EUR

12.8 million (Q3 2010/11: EUR 10.5 million).

As a result of the increase in sales revenues,

especially in the Retail segment, changes in

inventories and the cost of materials increased to

EUR 40.4 million and EUR 119.7 million,

respectively, in the third quarter. The cost of

materials as a percentage of sales stood at

54.7% in the third quarter of 2011/12, compared

to 55.0% in the same period of the previous year.

Accordingly, the gross profit margin improved

slightly from 45.0% to 45.3%.

The extraordinary effects of the third quarter are

also reflected in the expense items. Personnel

expenses as a percentage of sales increased

from 17.8% in the previous year to 18.7%,

primarily due to the former WISSMACH

employees. On a quarterly basis, the headcount

increased from 2,927 to 4,283 as of 31 July 2012.

Other operating expenses also picked up, namely

from EUR 26.1 million in Q3 2010/11 to EUR 45.3

million in Q3 2011/12. The increase is primarily

attributable to higher rental expenses resulting

from the takeover of the WISSMACH stores and

the leases signed for the new company-managed

Houses of GERRY WEBER.

Depreciation and amortisation in Q3 2011/12

totalled EUR 4.7 million (Q3 2010/11: EUR 3.0

million) due to increased depreciation of

furnitures and fixtures, e.g. for the new mono-

label stores.

Earnings before interest and taxes (EBIT) rose

sharply from EUR 16.4 million to EUR 19.7 million

in spite of the extraordinary charges resulting

from the expansion of the Retail segment; this

represents an increase of 20.2% on the prior year

quarter. The EBIT margin declined slightly from

11.2% in the third quarter of the previous year to

11.0%.


10

The GERRY WEBER Group’s net income for the

period after interest (EUR -0.4 million) and

income taxes (EUR -6.5 million) amounted to

EUR 12.8 million in the third quarter of the

financial year. This represents an increase by

21.9% compared to the previous year.

Nine months (9M) 2011/2012

Group sales revenues for the first nine months

increased by 13.9% on the same period of the

previous year, which is in line with our targets.

With sales revenues totalling EUR 554.4 million

at the nine-month stage and a seasonally strong

fourth quarter ahead of us, we are well on track to

meet or respectively slightly to exceed our sales

target for the full year.

As outlined above, changes in inventories (EUR

33.6 million) and the cost of materials (EUR 297.9

million) increased on the previous year due to the

expansion of the Retail operations. Against the

background of further improved procurement

processes and volume effects, the gross profit

margin improved from 46.9% to 49.3%, with the

changes in inventories reflected in the calculation

of gross profit.

For the reasons outlined above, personnel

expenses increased at a disproportionate rate

from EUR 75.4 million to EUR 90.9 million. As a

result of the expansion of the Retail activities,

personnel expenses as a percentage of Group

sales climbed from 15.5% to 16.4%.

Against the background of the acquisition of the

WISSMACH stores, the leases signed for the new

company-managed Houses of GERRY WEBER

and higher costs resulting from the increase in

sales revenues, other operating expenses also

increased at a higher rate than sales, namely

from EUR 107.0 million to EUR 129.8 million.

Taking into account increased

depreciation/amortisation in the amount of EUR

12.8 million. (9M 2010/11: EUR 8.8 million), e.g.

of the store fittings, earnings before interest and

taxes (EBIT) for the first nine months of 2011/12

were up by a strong 17.0% on the previous year

to EUR 66.7 million. At 12.0%, the EBIT margin

for the nine-month period exceeded the prior

year’s margin by 30 basis points. The increase in

the EBIT margin is all the more impressive

against the background of the extraordinary

effects resulting from the takeover of the former

WISSMACH stores, their conversion into mono-

label stores and the opening of new Houses of

GERRY WEBER.

As both the WISSMACH acquisition and all other

necessary investments were financed from

GERRY WEBER International AG’s own funds,

the financial result improved by a moderate 6.6%

to EUR 1.4 million.


11

Net income for the nine-month period after

income taxes amounted to EUR 44.5 million,

which represents a 23.5% increase on the

previous year.

Accordingly, earnings per share climbed from

EUR 0.78 to EUR 0.97.

Net worth position

Total assets declined from EUR 450.1 million as

of 30 April 2012 (end of Q2 2011/12) million to

EUR 429.4 million primarily to the outflow of cash

and the resulting reduction in liquid funds. Liquid

funds were used mainly for the acquisitions and

investments as well as for the dividend payment.

At EUR 198.1 million, fixed assets were up on

both the end of the financial year (EUR 160.2

million) and the first half of 2011/12 (EUR 186.2

million). The 23.7% increase is primarily

attributable to additions to property, plant and

equipment. Besides land and buildings, this item

also includes the shop fittings of our own stores.

As a result of the opening of new company-

managed Houses of GERRY WEBER, property,

plant and equipment increased by EUR 20.7

million compared to the end of fiscal 2010/11 to

EUR 138.3 million on 31 July 2012. Intangible

assets climbed EUR 11.1 million to EUR 30.4

million. The increase is primarily attributable to

the rights to enter into existing leases acquired in

the context of the DON GIL and WISSMACH

acquisitions.

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.

Final construction measures, especially at the

beginning of the fiscal year, increased the

carrying amount of this building from EUR 21.2

million to EUR 26.9 million at the end of the

reporting period.

Against the background of the expansion of the

Retail activities and the takeover of inventories in

the context of the WISSMACH transaction,

inventories increased sharply compared to the

end of the past financial year and the first half of

the current financial year from EUR 88.5 million to

EUR 121.4 million. In this context, it should be

noted that new TAIFUN and SAMOON mono-

label stores are being opened every week, which

need to be stocked with merchandise.

Other current assets rose from EUR 11.9 million

to EUR 26.9 million in the first nine months of

2011/12. This is primarily attributable to higher

VAT refund claims.

Liquid funds declined from EUR 90.6 million at

the end of the financial year 2010/11 to EUR 23.1

million on the reporting date on 31 July 2012,

which is primarily attributable to the takeover of

the former WISSMACH stores as well as to

increased investments in the expansion of our

own Retail activities and the payment of the

dividend. Also seasonal effects generally impact

liquid funds of Q3,e.g. the financing of parts of the

autumn/winter collection.

On the liabilities side of the balance sheet, equity

capital rose by EUR 16.7 million to EUR 330.6

million as of the nine-month stage. Accordingly,

the equity ratio improved to 77.0% (31 October

2011: 75.7%).


12

As in the previous quarters, non-current financial

liabilities were reduced, this time by EUR 4.6

million to EUR 10.6 million due to scheduled

repayments. By contrast, current financial

liabilities rose by EUR 10.0 million due to

seasonal factors. Current and non-current

provisions climbed by a moderate EUR 3.1 million

to EUR 29.7 million, which is primarily attributable

to an increase in other provisions.

The balance sheet structure for the full nine

months is still very solid as reflected in an equity

ratio of 77.0%, liquid funds of EUR 23.1 million

and financial liabilities of EUR 26.7 million.

Financial assets and investment

Against the background of the expansion of the

Retail operations, especially the opening of 125

new company-managed Houses of GERRY

WEBER / mono-label stores and the related

investments, the purchase price payments for the

DON GIL and WISSMACH acquisitions and the

profit distribution, liquid funds as of the end of the

reporting period (31 July 2012) were down by

EUR 62.8 million on the end of H1 2011/12 and

amounted EUR 23.1 million.

Although earnings before interest and taxes were

higher than in the first nine months of the

previous year, cash flow from operating activities

declined by a moderate 2.6% in Q3 2011/12 to

EUR 12.8 million. The fact that cash flow declined

moderately (EUR 0.3 million) in spite of a higher

operating result (EUR +9.7 million) is not least

attributable to an increase in inventories (EUR -

4.5 million) and other assets (EUR -5.3 million).

The outflow of cash from investing activities

increased sharply from EUR 28.0 million in the

first nine months of the previous year to EUR

54.4 million, also due to the expansion of our

business activities. The reasons for this increase

include, among others, higher investments in

property, plant and equipment as well as

intangible assets. These investments climbed

from EUR 16.6 million to EUR 33.9 million.

Comprehensive investments were required, in

particular, in conjunction with the opening of 125

new company-managed Houses of GERRY

WEBER and mono-label stores. The purchase

price for the former WISSMACH stores and their

inventories as well as the acquired DON GIL

outlets led to a EUR 14.1 million increase in cash

outflows from investing activities.

Cash outflows from financing activities totalled to

EUR 24.5 million in the first nine months of

2011/12 and included the scheduled repayment

of financial loans (EUR 5.4 million) as well as the


13

dividend payment of EUR 29.8 million. The first

nine months of the previous year were influenced

by the sale of own shares, which resulted in an

inflow of cash of EUR 21.0 million in spite of the

dividend payment of EUR 25.2 million.

Due to the outflow of cash from investing and

financing activities of EUR 54.4 million and EUR

24.5 million, respectively, cash and cash

equivalents declined by EUR 67.5 million. Cash

and cash equivalents consequently amounted to

EUR 23.1 million as of the end of the period (31

July 2012).

Segment report

GERRY WEBER International AG 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.

The extraordinary effects of Q3 2011/12

described above, e.g. the first full sets of

merchandise required for the new Houses of

GERRY WEBER and mono-label stores, the

personnel expenses and rents from the

WISSMACH takeover and the temporary closure

of the former WISSMACH stores for conversion

into mono-label stores, had a disproportionately

adverse effect on the Retail Segment.

Although 43 new company-managed Houses of

GERRY WEBER were opened, the Retail

segment generated earnings before taxes of EUR

6.2 million in the first half of 2011/12. In the third

quarter of the current financial year, the Retail

segment was adversely affected by extraordinary

effects, which resulted in the first negative pre-tax

result in an amount of EUR 1.1 million.

Sales revenues in the Retail segment increased

disproportionately from EUR 55.4 million in the

third quarter of the previous year to EUR 82.5

million. This 48.9% sales growth is attributable to

the following effects, among others:

- The Houses of GERRY WEBER opened in

the financial year 2010/11 and in the first half

of 2011/12 continuously increase their sales.

A House of GERRY WEBER typically

reaches its average sales volume after round

about 24 months.

- The TAIFUN and SAMOON mono-label

stores resulting from the conversion of the

former WISSMACH stores (69 between May

and July 2012) had to be fully stocked with

new merchandise.


14

- Revenues of EUR 14.0 million were

generated from the sale of the WISSMACH

merchandise taken over in the context of the

acquisition.

Between them, these effects led to above-

average sales growth in Q3 2011/12. On the

other hand, however, the Retail segment suffered

from disproportionate expense effects. The

WISSMACH employees as well as the rents for

the WISSMACH stores were fully reflected in

personnel and other operating expenses for the

first time in Q3 2011/12. In this context, it should

be noted that most of the former WISSMACH

stores had to be closed for six weeks for the

conversion and made no contribution to sales

during this time. The negative impact on the

operating income due to the named effects

amounted some EUR 1.0 million in Q3 2011/12.

The situation is similar with the newly opened

Houses of GERRY WEBER - as many as 56 in

the past nine months - which first make a below-

average sales contribution but already incur full

costs.

The Retail segment’s sales revenues for the first

nine months of the financial year increased by

37.3%. In spite of the extraordinary effects of the

third quarter outlined above and the cost of the

expansion, the Retail segment generated a

positive pre-tax result of EUR 5.1 million in the

nine-month period.

Due to the expansion strategy and the opening of

new company-managed stores, both the

segment’s assets and liabilities increased

markedly, namely by 70.0% and 102.5%,

respectively. The Retail segment’s headcount

climbed from 1,593 to 2,899.

In the third quarter of 2011/12, the Production

and Wholesale segment again benefited

moderately from the shift in delivery dates, on

which we reported in detail in the previous

quarters. We began to shift the dates of the

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 distribution channels.

Due to the shift in delivery dates, first-quarter

revenues in the Wholesale segment were down

by a moderate EUR 2.1 million on the prior year

quarter. In the third quarter of 2011/12, the

segment’s revenues increased by EUR 4.7 million

or 5.3% to EUR 93.7 million, thus offsetting part

of the shift. By the end of the financial year

2011/12, the effects arising from the shift will

have been offset in full.

The Production and Wholesale segment’s sales

revenues for the full nine-month period increased

by 2.2% to EUR 332.6 million. Due to the

disproportionate rise in Retail revenues, the

Wholesale segment’s share in total Group

revenues declined from 66.9% on 31 July of the

previous year to 60.0%. Nevertheless, the

Wholesale segment still generates two thirds of

our sales revenues.

Due to the improvement in the cost of materials

as a percentage of sales and strict cost

management, earnings before taxes improved


15

from EUR 42.2 million to EUR 58.3 million in the

first nine months of 2011/12 (+38.1%). At 815, the

number of employees was only slightly higher

than on 31 July of the previous year (790).

In the first nine months of the financial year, 33

franchised Houses of GERRY WEBER were

opened, 25 of which are located 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.

The Other segment contributed EUR 7.5 million

(9M 2010/11: EUR 5.3 million) or 1.4% to total

Group sales. A total of 569 people were

employed in this segment as of 31 July 2012 (9M

2010/11: 544 people). Compared to the

expansion of the business activities of the

GERRY WEBER Group as a whole, this is a

relatively moderate increase.

OPPORTUNITY AND RISK REPORT

The GERRY WEBER Group generates

approximately 66.7% of its sales within Germany.

In spite of the ongoing debt crisis in Europe,

Germany continues to offer a positive

environment in terms of consumer spending.

According to the latest GfK consumer climate

index report released in August 2012, the index

has remained at a high level of 5.9 points even

though it has slightly weakened compared to the

prior month.

If the overall economic environment, and the debt

crisis in the euro area, in particular, remain in this

condition or deteriorate, this might cast a cloud

over consumer confidence in Germany as well as

depress consumer spending in several eurozone

countries even further.

We have a systematic risk management system

in place in order to track and assess our market

prospects in the individual sales countries on an

ongoing basis. This enables us to respond to

current developments as they occur and limit our

risk exposure accordingly. We also continue to

diversify our exposure to individual countries and

markets by expanding our sales activities in such

non-euro countries and regions as Russia and

the Middle East which are not, or only to a small

degree, affected by the European debt crisis.

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.


16

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.

POST-BALANCE SHEET EVENTS

Effective 1 August 2012 GERRY WEBER

International AG entered into an exclusive

licensing agreement with footwear manufacturer

JOSEF SEIBEL Schuhfabrik GmbH based in

Hauenstein, Germany. The licence covers the

production and worldwide distribution of a

GERRY WEBER-branded shoe collection. The

launch of the first shoe collection is planned for

the autumn/winter 2013 season.

GERRY WEBER International AG and its largest

Dutch franchise partner have signed an

agreement under which the former will acquire a

51 % stake in the local Houses of GERRY

WEBER as well as the concession shops owned

by the latter. As a result of this agreement, the

Group will be the majority owner of currently 25

Houses of GERRY WEBER as well as 15

concession shops in the Netherlands. The two

Dutch operating companies will be fully

consolidated in the consolidated accounts of the

GERRY WEBER Group and be accounted for as

part of the Retail segment. Under the agreement

signed, the GERRY WEBER Group will have a

right of first refusal on the remaining 49 % starting

2017.

FORECAST REPORT

The economic outlook for Europe remains

predominantly under the influence of the

implications of the government debt crisis in

several European countries. While the pace of

growth in Germany has slowed down, the

German economy still appears to be in a more

robust shape than many of its European

counterparts. Having expanded by 0.5% in the

first quarter of 2012, German GDP increased by

0.3% quarter-on-quarter during the second

quarter. The second quarter of 2012 also saw an

expansion in German economic output in year-

on-year terms.

On the consumption side of the national

accounts, private consumption rose by 0.4%

compared to the prior quarter and by 0.8%

compared to the same period of 2011. The rise in

consumer spending is particularly due to the 4%

rise in wages and salaries compared to the prior

year and the resulting 2.1% increase in available

household incomes.

During the first nine months of the current

financial year the GERRY WEBER Group

generated approximately EUR 370.1 million or

66.7% of its sales in Germany. After three

quarters of the current fiscal year export sales

amounted EUR 184.4 million.

Despite the growth reported for the German

economy during the first six months of the year,

the recession going on in some euro-zone

countries may still affect Germany after all. The

August 2012 GfK consumer climate study noted a

slight weakening of consumer sentiment in

Germany. As consumers take a more pessimist

view of the economic outlook, this might also

affect consumers’ income expectations and

consequently their propensity to purchase


17

consumer goods. At present, income

expectations and the propensity to purchase

consumer goods are still at a good level, which

primarily reflects the very stable labour market

data and the improved collective bargaining

agreements. As a result, the consumer climate

remains at a high level, partly also because of

declining savings ratios; the current 5.9 points

reading is even higher than the 5.3 points reading

during the same time last year.

While we have so far not noted any significant

decline in demand in the markets we serve, it

cannot be ruled out that the consumer climate in

Germany may be dampened slightly and that the

consumer climate in certain southern European

countries may deteriorate even further. However,

we are firmly convinced that we will be able to

successfully hold our own in a less benign market

environment in a similar fashion as at the time of

the 2008/2009 financial crisis. Our uniquely

positioned brands, our operational strengths, our

flexible sourcing system and, most of all, our

customer structure mean that we are well

prepared for the tasks ahead. In our Retail

business we can rely on the loyalty of our female

customers who have above-average shopping

budgets at their disposal even in time of crisis. In

the wholesale segment, we have cultivated

partnerships with our retail customers for many

years and we have always sought to create win-

win situations in terms of margins for both sides.

Following the rebranding of some 120 acquired

German stores as TAIFUN mono-label stores, we

will expand distribution of our TAIFUN brand to

certain foreign markets and push ahead its

distribution in markets already served by this

brand. In such core markets as the Netherlands

and Austria we plan to establish stand-alone

mono-label stores for the TAIFUN brand.

The Retail segment will expand particularly in the

international markets through the opening of

more Houses of GERRY WEBER. This

expansion will focus on neighbouring European

countries such as Switzerland, Poland and other

eastern European countries. August 2012 saw

the opening of the first company-managed House

of Gerry Weber in Switzerland where two more

openings are already scheduled for early 2013.

Moreover, our Swiss web shop selling all GERRY

WEBER brands went online on 14 August 2012.

Our Wholesale segment is poised for continued

growth as well. New Houses of GERRY WEBER

and shop-in-shops will be opened in cooperation

with local franchise and distribution partners

particularly in non-eurozone countries such as

Russia and certain Middle Eastern countries. Our

market entry in the USA is equally proceeding

well, which has encouraged the Dillard’s

department store chain to raise the number of

stores selling GERRY WEBER merchandise from

11 to 19. Our second stateside distribution

partner, Bloomingdale’s, is set to install more

shop-in-shops as well. Notwithstanding the

market potential existing in the USA, we will

continue to proceed prudently over there,

cooperating exclusively with well established local

partners.

In view of the business performance in the first

nine months of the current year we once more

confirm our EBIT margin guidance between 14.5

and 14.6% for the current financial year

2011/2012. We slightly exceed our given sales

target from EUR 795 million to EUR 800 million

for whole fiscal 2011/12.

Against the background of the growth potential

existing both for our GERY WEBER core brand

and for our TAIFUN and SAMOON brands, we

anticipate achieving significant sales and


18

earnings increases in the coming months. Our

plans and forecasts for the future will reflect the

risks potentially resulting from the weakening of

the economic outlook in our sales markets.

The coming months will clearly be characterised

by our growth efforts both in our Retail and

Wholesale segments.


19

Q3 2011/12 Q3 2011/12 9M 2011/12 9M 2010/11

in KEUR 1.5.2012 - 31.7.2012 1.5.2011 - 31.7.2011 1.11.2011 - 31.7.2012 1.11.2010 - 31.7.2011

Sales 178,387.0 146,356.8 554,424.3 486,796.5

Other operating income 3,966.0 2,253.2 10,615.6 8,526.0

Changes in inventories 40,409.9 31,539.2 33,637.1 26,397.8

Cost of materials -119,678.7 -97,784.4 -297,874.7 -272,554.1

Personnel expenses -33,302.2 -26,068.9 -90,919.0 -75,449.9

Depreciation/Amortisation -4,713.7 -2,968.6 -12,801.6 -8,799.9

Other operating expenses -45,271.9 -36,645.3 -129,806.9 -106,996.9

Other taxes -110.5 -305.3 -615.9 -970.1

OPERATING RESULT 19,685.9 16,376.7 66,658.8 56,949.4

Financial result

Income from long-term loans 0.0 0.0 0.0 0.0

Interest income 150.6 518.9 378.5 606.3

Writedowns on financial assets 0.0 0.0 0.0 0.0

Incidential bank charges -232.3 -242.6 -615.3 -629.0

Interest expenses -287.9 -386.3 -1,151.7 -1,463.2

-369.6 -110.0 -1,388.5 -1,485.9

RESULTS FROM ORDINARY ACTIVITIES 19,316.2 16,266.7 65,270.3 55,463.5

Taxes on income

Taxes of the reporting period -6,444.5 -5,546.6 -21,406.0 -18,951.9

Deferred taxes -33.5 -186.5 607.3 -490.7

-6,477.9 -5,733.1 -20,798.6 -19,442.6

NET INCOME OF THE REPORTING PERIOD 12,838.3 10,533.6 44,471.7 36,020.9

Earnings per share (basic) 0.28 0.23 0.97 0.78

First Nine Month 2011/12 (1 November 2011 - 31 July 2012)

CONSOLIDATED INCOME STATEMENT (IFRS) in EUR'000

3rd Quarter 2011/12 (1 May - 31 July 2012)


20

ASSETS

9M 2011/12 2010/11

in KEUR 31. July 2012 31. Oct. 2011

NON-CURRENT ASSETS

Fixed Assets

Intangible assets 30,391.5 19,270.7

Property, plant and equipment 138,261.8 117,596.5

Investment properties 26,851.0 21,246.4

Financial assets 2,565.0 2,052.5

Other non-current assets

Trade receivables 46.8 107.2

Other assets 375.9 753.1

Income tax claims 3,361.5 2,661.5

Deferred tax assets 3,464.9 2,910.2

205,318.3 166,598.1

CURRENT ASSETS

Inventories 121,357.9 88,526.7

Receivables and other assets

Trade receivables 52,201.1 56,829.5

Other assets 26,931.8 11,925.6

Income tax claims 493.1 493.1

Cash and cash equivalents 23,116.1 90,584.7

224,100.0 248,359.6

TOTAL ASSETS 429,418.4 414,957.7

as of 31 July 2012

CONSOLIDATED BALANCE SHEET TO IFRS in EUR'000


21

EQUITY AND LIABILITIES

9M 2011/12 2010/11

in KEUR 31. July 2012 31. Oct. 2011

EQUITY

Share capital 45,906.0 45,906.0

Capital reserve 102,386.9 102,386.9

Retained earnings 105,341.7 105,341.7

Accumulated other comprehensive income/loss acc. to IAS 39 1,791.6 -646.4

Exchange differences -474.3 -62.1

Accumulated profits 75,623.9 60,991.0

330,575.8 313,917.2

NON-CURRENT LIABILITIES

Provisions for personnel 429.8 396.2

Other provisions 5,743.7 3,105.4

Financial liabilities 10,580.6 15,214.3

Deferred tax liabilities 5,631.3 4,639.2

22,385.5 23,355.1

CURRENT LIABILITIES

Provisions

Tax liabilities 2,196.4 2,514.4

Provisions for personnel 12,372.0 12,388.7

Other provisions 8,991.0 8,223.6

LIABILITIES

Financial liabilities 16,127.7 6,132.1

Trade payables 21,487.6 34,566.8

Other liabilities 15,282.3 13,859.9

76,457.1 77,685.5

TOTAL EQUITY AND LIABILITIES 429,418.4 414,957.7

as of 31 Juli 2012

CONSOLIDATED BALANCE SHEET TO IFRS in EUR'000


22

Capital stock Capital Retained Accumulated Exchange Accumulated Equityreserves earnings other comprehensdifferences profits

in KEUR income/loss

As of 1 November 2011 45,906.0 102,386.9 105,341.7 -646.4 -62.1 60,991.0 313,917.1

Sale of own shares 0.0

Dividend payment -29,838.9 -29,838.9

Adjustments of exchange differences -412.3 -412.3

Forward exchange contracts not affecting income

2,438.0 2,438.0

Net income of the reporting period 44,471.7 44,471.7

As of 31 July 2012 45,906.0 102,386.9 105,341.7 1,791.6 -474.4 75,623.9 330,575.8

Capital stock Capital Retained Accumulated Exchange Accumulated Equityreserves earnings other comprehensdifferences profits

in KEUR income/loss

As of 1 November 2010 21,317 45,039 98,295 -3,345 17 49,201 210,524

Sale of own shares 1,636 57,348 58,984

Dividend payment -25,248 -25,248

Capital increase from company own funds 22,953 -22,953 0.0

Adjustments of exchange differences -101 -101

Forward exchange contracts not affecting income

-40 -40

Net income of the reporting period 36,021 36,021

As of 31 July 2011 45,906 102,387 75,342 -3,385 -84 59,974 280,140

STATEMENT OF CHANGES IN GROUP EQUITY (IFRS) IN EUR'000



23

Q3 2011/12 Ladiesware Ladiesware Consolidated Totalproduction and Retail entries and

in KEUR wholesale other segments

Sales by segment 93,689 82,473 2,225 178,387

EBT (Earnings Before Tax) 21,345 -1,121 -907 19,316

Depreciation of property, plant and equipment 777 1,639 2,298 4,714

Interest income 18 2 130 151

Interest expenses 325 140 -177 288

Assets 186,993 150,810 91,640 429,443

Liabilities 101,668 173,265 -176,091 98,843

Investments in non-current assets 467 10,587 3,912 14,965

Number of employees (as of 31 July 2012) 815 2,899 569 4,283

Q3 2010/11 Ladiesware Ladiesware Consolidated Totalproduction and Retail entries and


Sales by segment 89,006 55,389 1,962 146,357

EBT (Earnings Before Tax) 12,105 3,205 957 16,267

Depreciation of property, plant and equipment 627 1,135 1,207 2,969

Interest income 92 -4 431 519

Interest expenses 80 27 279 386

Assets 162,983 88,729 129,309 381,021

Liabilities 101,832 85,559 -86,506 100,885

Investments in non-current assets 292 3,069 6,544 9,905


3. Quarter 2011/12 (1 May 2011 - 31 July 2012)

SEGMENT REPORTING BY DIVISIONS (IFRS) in EUR'000


24

9M 2011/12 Ladiesware Ladiesware Consolidated Totalproduction and Retail entries and


Sales by segment 332,633 214,267 7,524 554,424

EBT (Earnings Before Tax) 58,275 5,068 1,928 65,270

Depreciation of property, plant and equipment 2,246 4,617 5,939 12,802


Interest expenses 1,565 403 -816 1,152

Assets 186,993 150,810 91,640 429,443

Liabilities 101,668 173,265 -176,091 98,843

Investments in non-current assets 2,203 18,753 23,364 44,319


9M 2010/11 Ladiesware Ladiesware Consolidated Totalproduction and Retail entries and


Sales by segment 325,455 156,047 5,294 486,796

EBT (Earnings Before Tax) 42,202 8,702 4,559 55,463

Depreciation of property, plant and equipment 1,786 3,295 3,719 8,800


Interest expenses 921 149 393 1,463

Assets 162,983 88,729 129,308 381,020

Liabilities 101,832 85,559 -86,506 100,885

Investments in non-current assets 1,701 5,879 20,502 28,082



SEGMENT REPORTING BY DIVISIONS (IFRS) in EUR'000


25

9M 2011/12 9M 2010/11

in KEUR 1.11.2011 - 31.7.2012 1.11.2010 - 31.7.2011

Operating result 66,658.8 56,949.3

Depreciation / amortisation 12,801.6 8,799.9

Profit / loss from the disposal of fixed assets -43.0 64.0

Increase / decrease in inventories -29,098.2 -24,568.8

Increase / decrease in trade receivables 4,688.8 3,066.7

Increase / decrease in other assets that do not fall under investing or financing activities

-12,404.0 -7,140.6

Increase / decrease in provisions 3,422.6 4,618.6

Increase / decrease in trade payales -13,079.2 -10,623.7

Increase / decrease in other liabilities that do not fall under investing or financing activities

2,268.1 3,273.4

Income tax payments -22,424.0 -19,257.7

Other non-cash effective income/expenses 0.0 -2,050.0

CASH INFLOWS FROM OPERATING ACTIVITIES 12,791.6 13,131.2

Interest income 378.5 606.3

Incidential bank charges -615.3 -629.0

Interest expenses -1,151.7 -1,463.2

CASH INFLOWS FROM CURRENT OPERATING ACTIVITIES 11,403.1 11,645.3

Proceeds from the disposal of properties, plant, equipment and intangible assets 46.0 241.0

Cash outflows for investments in property, plant, equipment and intangible assets -33,957.3 -16,639.0

Cash outflows for the acquisition of fully consolidated companies and other business units less cash and cash equivalents acquired

-14,098.0 -950.0

Cash outflows for investments in investment properties -5,873.0 -8,442.0

Proceeds from the disposal of financial assets 141.5 232.0

Cash outflows for investments in financial assets -654.0 -2,400.0

CASH OUTFLOWS FROM INVESTING ACTIVITIES -54,394.8 -27,958.0

Dividend payment -29,838.9 -25,248.0

Proceeds of the sale of own shares 0.0 58,984.2

Raising / repayment of financial liabilities 5,362.0 -12,745.2

CASH OUTFLOWS / INFLOWS FROM FINANCING ACTIVITIES -24,476.9 20,991.0

Changes in cash and cash equivalents -67,468.6 4,678.3

Cash and cash equivalents at the beginning of the reporting period 90,584.7 45,917.3

CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 23,116.1 50,595.6

CONSOLIDATED CASH FLOW STATEMENT (IFRS) in EUR'000



26

Explanatory notes on the interim consolidated financial statements of GERRY WEBER International AG for the period

ended 31 July 2012

General information and accounting basis

GERRY WEBER International AG is a listed joint stock company headquartered in Neulehenstraße 8, D

– 33790 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 nine months of 2011/12 (1 November 2011 –

31 July 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 2011. The interim consolidated financial statements for the third quarter and first

nine 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 nine 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

GERRY WEBER International AG and all its subsidiaries for the period ended 31 July 2012. The

subsidiaries are fully consolidated. As of the reporting date, the basis of consolidation comprises 20

subsidiaries.


27

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 -2.0 million to earnings after income and taxes generated

sales revenues of EUR 4.6 million in the first nine months of 2011/12. The following assets and

liabilities (no financial liabilities) were taken over:

1 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 -0.2 million to operating earnings in the first nine month of

2011/12 and generated sales revenues of EUR 16.7 million, thereof EUR 14.0 million from the sale of

the WISSMACH products and EUR 2.7 million from the sale of GERRY WEBER products. The following

assets and liabilities (no financial liabilities) were taken over:

Carrying amount Recognised upon

in EUR mill ions in acc. IFRS acquisition

Intangible Assets1 0.0 5.4

Property, plant and equipment 0.3 0.3

Current assets 0.7 0.7

TOTAL ASSETS 1.0 6.4

Non-current liabilities 0.3 0.3

Current liabilities 0.0 0.0

TOTAL LIABILITIES 0.3 0.3

Net assets2 0.7 6.1

Acquisition costs 6,1

Goodwill 0.0


28

1 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 GERRY WEBER International AG 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 construction work carried out on the

building in the first nine months of the current financial year, the carrying amount of the investment

Carrying amount Recognised upon

in EUR mill ion in acc. IFRS acquisition

Intangible assets1 0.0 4.3

Property, plant and equipment 3.4 3.4

Current assets 3.7 3.7

TOTAL ASSETS 7.1 11.4

Non-current liabilities 2.7 2.7

Current liabilities 0.0 0.0

TOTAL LIABILITIES 2.7 2.7

Net assets2 4.4 8.7

Acquisition costs 8.7

Goodwill 0.0


29

property increased from EUR 21.2 million at the end of the financial year 2010/11 (31 October 2011) to

EUR 26.9 million at the end of the first nine month 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 GERRY WEBER International AG 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.

Accordingly, earnings per share amounted to EUR 0.97 after nine month in fiscal 2011/12 (9M 2010/11:

EUR 0.78)

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


30

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.

A detailed segment report is stated in the management report of this interim report.

Post-balance sheet events

Effective 1 August 2012 GERRY WEBER International AG entered into an exclusive licensing

agreement with footwear manufacturer JOSEF SEIBEL Schuhfabrik GmbH based in Hauenstein,

Germany. The licence covers the production and worldwide distribution of a GERRY WEBER-branded

shoe collection. The launch of the first shoe collection is planned for the autumn/winter 2013 season.

GERRY WEBER International AG and its largest Dutch franchise partner have signed an agreement

under which the former will acquire a 51 % stake in the local Houses of GERRY WEBER as well as the

concession shops owned by the latter. As a result of this agreement, the Group will be the majority

owner of currently 25 Houses of GERRY WEBER as well as 15 concession shops in the Netherlands.

The two Dutch operating companies will be fully consolidated in the consolidated accounts of the

GERRY WEBER Group and be accounted for as part of the Retail segment. Under the agreement

signed, the GERRY WEBER Group will have a right of first refusal on the remaining 49 % starting 2017.


31

Calendar of financial events

Investor Relations contact:

GERRY WEBER International AG

Investor Relations Department

Claudia Kellert

Neulehenstraße 8

D – 33790 Halle / Westphalia

Germany

Phone: +49 5201 185 0

Email: [email protected]

Internet: www.gerryweber.com

Disclaimer

This interim report contains forward-looking statements that are based on assumptions and/or estimates

by the management of GERRY WEBER International AG. While it is assumed that these forward-looking

statements are realistic, no guarantee can be given that these expectations will actually materialise.

Publication of the Nine Month Reporting 2011/12 14 September 2012

End of fiscal year 2011/12 31 October 2012


32

gerry weber

Documents

gerry weber group

wissmach stores

previous year

opened houses of gerry

current financial year

fiscal year

gerry weber monolabel

retail segments sales