Gerry Weber International AG generated a loss of EUR 5.078 million in the 2021 financial year, which corresponds to half of the group’s share capital. The Management Board provided information on this in an ad hoc announcement on Friday.
According to this, however, there is no reason to worry as the operative business and the ability to deliver are not affected. It is a “purely accounting effect” in the individual financial statements of the AG, essentially due to the absorption of losses from Gerry Weber Retail GmbH.
“According to the information provided, the operative business of the group will not be affected by this – in particular, the ability to deliver and delivery reliability is ensured. Due to the bridging aid received of 29.1 million euros, Gerry Weber has stable liquidity,” explains the company in the press release.
The reasons for the loss include primarily the assumption of the losses of Gerry Weber Retail GmbH in the amount of 29.393 million euros due to the existing profit transfer agreement and the write-downs on investment book values due to poorer profitability expectations of the subsidiaries of Gerry Weber International AG in the amount of 5.282 million euros .
Other reasons are the two-year pandemic-related closure of shops, which led to provisions for impending losses for individual shops in the amount of 10.174 million euros and a negative effect due to the merger of TB Fashion GmbH with Gerry Weber Retail GmbH in the amount of 6.397 million euros.
However, the Group continues to assume that the preliminary Group figures published on March 31, 2022 in advance will be included in the audited consolidated financial statements for the 2021 financial year without any significant changes. Full-year 2021 results and first quarter 2022 results are scheduled to be released on May 30, 2022, as previously announced.
The management board will also immediately convene a general meeting to notify the shareholders of the loss of half of the share capital.