Corporate | 5 November 2003 14:11

Ludwig Beck am Rathauseck english

Press release issued by Ludwig Beck AG on the first nine months of 2003 Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Press release issued by Ludwig Beck AG on the first nine months of 2003 LUDWIG BECK AG: report on the first nine months of 2003. Further stabilization in sales in spite of heatwave loss at EBIT level virtually unchanged further extensions to branch network. Munich, November 5, 2003. LUDWIG BECK (DE0005199905) managed to keep sales steady in the first nine months of 2003 in spite of the extreme heatwave conditions in July and August. Consolidated gross sales between January and September 2003 came to EUR 62.3 million, down 2.1 % on the same period one year earlier (EUR 63.7 million). At the end of the first half, sales had declined by 2.4%. According to German trade publication “TextilWirtschaft”, sales in the German clothing retail sector as a whole contracted by an average of 5 % in the same period. Substantial strain continues to come from the uncertain economic situation as well as sustained unsatisfactory reform discussions. On the other hand, the new Saturday opening hours are still proving advantageous for German retailers, with Ludwig Beck making full use of the scope provided by law by keeping its stores open on Saturdays until 8:00 pm. Thanks to the unique location of its main store on Munichs Marienplatz square, Ludwig Beck is benefiting to an above-average extent from the new statutory rules. One third of daily takings are consistently being achieved during the extended opening hours. On September 10, Ludwig Beck Vertriebs GmbH opened two branches at the new “Forum Allgäu” shopping mall in Kempten. Located in the heart of the town, this new centre has established itself within a short space of time. Bearing the Gerry Weber and Tommy Hilfinger labels, the branches exceeded expectations in the start-up phase. In spite of the unsatisfactory sales performance, the loss at the EBIT level remained virtually unchanged year-on-year, coming to EUR 1.1 million in the first nine months (previous year: loss of EUR 0.9 million). The measures taken, which particularly focused on personnel, resulted in savings of EUR 1.9 million, which will also have a positive effect on the Companys bottom line in the fourth quarter. Retailers as a whole have sustained losses at the EBIT level in the first three quarters for reasons related to the sector as a whole. This is because, while fixed costs are spread evenly across the entire year, sales are disproportionately high in the final quarter. Given all the adverse effects on consumer confidence, a sustained improvement is not likely to arise until 2004. Accordingly, the most that can be hoped for at this stage is that sales continue to stabilize. This will be aided by continuing upbeat business on Saturdays thanks to the new longer opening hours as well as strong Christmas business. In addition, a further branch was opened in Landshut in October. At the same time, the successful “factory outlet” distribution channel has been extended with the addition of two new locations in Baden- Württemberg. Ludwig Beck remains committed to further enhancing its established strengths in the form of high quality, attractive product ranges and competent service. A key focus in the final quarter of the year will be the traditional “Christmas House”, which has now become something of an institution in Munich. This “Department Store for All Senses” offers a special and joyous experience, capturing peoples imagination. The full nine-month report is being simultaneously released on the Internet at www.ludwigbeck.de, with the printed version to be made available on November 12, 2003. For further information, please contact: Jens Schott, Investor Relations Tel. +49(0)89 23691 798, Fax +49(0)89 23691 600 LUDWIG BECK: Key performance indicators for the year to September 30 EUR millions 2003 2002 Gross sales 62,3 63,7 Net sales 53,7 54,9 EBITDA 1,6 1,9 EBIT -1,1 -0,9 Employees (excluding trainees) 544 543 end of message, (c)DGAP 05.11.2003 ——————————————————————————– WKN: 519990; ISIN: DE0005199905; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Stuttgart 051411 Nov 03