My German fashion retail chain Gerry Weber arrived with their Q2 report and the reading was not very good to be honest and I can directly say that I kind of knew this by observing the amount of customers entering and being inside their stores.
To see the report in full please go here and to find out more regarding Gerry Weber please visit analysis of Gerry Weber 2015.
The first half year has awful and if one would remove Hallhuber from the equation then the values would have been one step further down on the awful scale. For the running half year the revenue is up by 4.8% (and -3.4% if one would have excluded Hallhuber). The inventory is growing which is very bad and we ended up with a net income of around 22 million € which is -33% compared to the half year in 2014. Ralf Weber the new CEO need to change this trend and to change it fast. Building up inventory is not good and the value must often by written down in the world of fashion that keeps changing each season.
Conclusion: Gerry Weber is in trouble which is why they appeared on my radar and why I also bought them. The effect of a dramatic share price decrease such as for Gerry Weber during spring is often not seen until the quarter reports arrive. I will remain as a shareholder but I will not increase my position until I see changes either with amount of customers in the stores or a couple of good quarter reports.
No comments:
Post a Comment