Gerry Weber: Shares plunge on outlook cut, restructuring programme

Gerry Weber International AG

14/06/2018 08:24

** Shares in Germany-based fashion company  GWIG.DE  drop 11
pct and hit almost 13 yr low
    ** Co cut FY outlook on Wednesday and now sees 2017/18
revenues between EUR 830-840 mln vs previously forecasted EUR
870-890 mln  urn:newsml:reuters.com:*:nASM000KMV
    ** FY EBIT seen between EUR -10 mln and EUR 0 (previous
forecast: EUR 10-20 mln)
    ** Co also said to implement new Performance Programme
(development of which was announced in February  urn:newsml:reuters.com:*:nASM000JK3)
    ** Measures taken will lead to higher-than-expected
extraordinary charges of roughly EUR 15 mln in current FY and to
a shift in revenues to the next financial year
    ** "Group remains in the mid of a severe restructuring
program and we see downward revision potential for our earnings
expectations announced a fundamental change of its business
model to a "Go-to-Market" model, which should cause additional
costs", says Baader Helvea analyst
    ** Brokerage confirms "sell" rating 
    

    

 ((daria.kowalewska@tr.com))