Corporate | 8 May 2002 14:46

Ludwig Beck am Rathauseck english

Quarterly report 1.2002: Level of turnover virtually maintained Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Quarterly Report 1/2002 Level of turnover virtually maintained despite consumption doldrums – Net earnings slightly up – Continued expansion of Vertriebs GmbH Munich, 8 May 2002. In spite of an appreciable degree of consumer buying restraint, LUDWIG BECK (WKN 519 990) succeeded in virtually maintaining the previous quarter’s level of turnover, and the Group achieved a gross figure of EUR 21.2 (previous quarter: 21.6) million in the 1st quarter of 2002. Indeed, LUDWIG BECK’s overall performance was significantly better than that of the sector as a whole in which, according to German trade journal “TextilWirtschaft”, sales slumped by an average 7 per cent in the first three months of this year. This situation was predominantly due to prolonged uncertainty in coping with the euro as new currency, continuation of the poor economic situation, as well as the threat of unemployment among Germany’s workforce. All these factors make consumers feel insecure to a degree previously unknown. Healthy sales in the branches and growth among its subsidiaries enabled LUDWIG BECK to compensate the buying restraint on the part of consumers that prevailed in virtually all goods sectors. ludwigbeck-online GmbH for example, with its Internet shop and mail order activities, achieved turnover growth of 19 per cent to EUR 100,000 as against the previous quarter’s figure of EUR 84,000. The newly founded Ludwig Beck Vertriebs GmbH commenced operations in late February with the opening of an s.Oliver store in Memmingen, followed by the takeover on 1 March of two existing s.Oliver branches in Regensburg. With sales of EUR 0.3 million, this was a very promising start. Whilst sales remained at virtually the same level as in the preceding quarter, LUDWIG BECK nevertheless achieved a slight increase in its net earnings. The result from ordinary operations improved to EUR -0.2 million as against the previous quarter’s figure of EUR – 0.6 million, and thus, as was the case with sales, lay within the budget corridor. Owing to the nature of the trade, operating results in the retail sector are negative during the first three quarters of the year since fixed costs are spread over the entire year, whilst the higher sales figures are achieved in the closing quarters. At LUDWIG BECK the consolidation of real estate interests linked with one-off effects made for positive contributions to results in sum. Included in the operating result are minor, budgeted start-up losses relating to the subsidiaries. No recovery in terms of the mood among consumers is anticipated for the time being against the background of a continuingly difficult economic situation and ongoing buying restraint. LUDWIG BECK identified this development at an early stage, and paved the way for turnover growth against the trade trend. Work on adding a sales area of 250 m2 to the linen and bodywear store will be completed in autumn to accommodate a new cosmetics department with spa area, and the lingerie range is being expanded and restructured. In the course of 2002 Ludwig Beck Vertriebs GmbH will have opened no less than six branch operations. 17 April saw the opening of s.Oliver and Gerry Weber stores in the “Regensburg Arkaden” shopping centre, and an Esprit shop is scheduled to open in autumn at the Olympia shopping centre in Munich. LUDWIG BECK will be continuing its strategy of expansion in 2003, when a total of at least ten branches will be opened with the main emphasis on shopping centre locations. Against a background of targeted measures towards expansion and further cost reduction the Management Board intends to resolutely pursue its planning target, namely double-digit growth of the Group’s annual net profit and an appreciable upward sales trend in the fiscal year 2002 based on an economic upswing in the second half-year. The detailed Quarterly Report will be published on the Internet at http://www.ludwigbeck.de, parallel to the printed version which will be available as from 14 May 2002. Contact: Lothar Fiss, Investor Relations Tel. +49(0)89 23691-663, Fax +49(0)89 23691-600 Key figures in Mio. EUR I. 2002 I. 2001 Gross turnover 21,2 21,6 Net turnover 18,3 18,6 EBIT – 0,8 – 0,5 Result fr ordinary opera. – 0,2 – 0,6 Deficit for the period – 0,2 – 0,6 Earnings p. Share (DVFA) – 0,06 – 0,11 Personnel as at 31.03. 572 627 end of message, (c)DGAP 08.05.2002