Corporate | 17 October 2013 08:00
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Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG / Key word(s): Quarter Results/Quarter Results
Corporate News LUDWIG BECK: Weather conditions continue to affect sales development – optimistic expectations for year-end sales Munich, October 17, 2013 – The unusually long winter already had a detrimental effect on spring sales for Munich Fashion Group LUDWIG BECK (ISIN DE 0005199905). Summer brought more adverse conditions: a heat wave and construction in the Tram network. Tram connections to the flagship store at Munich Marienplatz were shut down for four Saturdays – the most important sales day for LUDWIG BECK. The consequential decline in sales for the 1 st nine months of 2013 was nonetheless relatively moderate, with -0.4% in like-for-like sales. The new online shop continued to perform very satisfactory. The fashion retail sector recorded a 2% drop for the same period.
Development of sales
Earnings situation
LUDWIG BECK generated gross profits of EUR 28.7m (previous year: EUR 29.6m) in the 1 st nine months of 2013. Last year, the recently sold Olympia Shopping Mall Esprit branch still contributed EUR 0.6m. The gross profit margin was at 49.8% (previous year: 50.0%). Absolute expenses against corresponding income were at EUR 23.3m compared to EUR 22.1m in the previous year. The expense ratio (operating expenses minus corresponding proceeds in relation to net sales) was 40.4% compared to 37.3%. Thus earnings before interest and taxes (EBIT) amounted to EUR 5.4m (previous year: EUR 7.6m). Accordingly, the EBIT margin reached 9.4% – after 12.8% in last year’s 3 rd quarter. Earnings before taxes (EBT) reached EUR 4.1m (previous year: EUR 6.2m), the EBT margin was at 7.2% (previous year: 10.5%). Period net profits after minority interests amounted to EUR 2.6m compared to EUR 4.1m in the 1 st nine months of 2012.
Outlook
In recent years, LUDWIG BECK has, again and again, proven its ability to neutralize bad weather conditions and other sales impeding effects and use its internal strengths to generate new growth. The Group’s internal stability is based to a large part on the appeal of the LUDWIG BECK brand. It rests securely on a near perfect location, an exclusive collection, outstanding sales culture and the emotionally enticing flair of a department store that is unique in all of Europe. Because of these qualities, the company has gained the trust of investors and partners. In the future, continuity, reliability and growth will continue to be the determining factors for corporate development. One example for the Group’s consistency in following its upgrade strategy is the preliminary work currently in progress for the expansion and redesign of the lower ground floor in the flagship store at Marienplatz. 500 m 2 of new sales area will be developed – a powerful impulse for LUDWIG BECK’s sustainability into the future. Even though bad weather and detrimental construction work on the Tram network and in close proximity of the department store at Marienplatz have taken their toll, the management still expects earnings before taxes (EBT) in the lower end of the predicted target range between EUR 11m and EUR 13m, as set at the beginning of 2013. Dieter Münch, Executive Board member: ‘We are optimistic and expect the expense ratio to improve in the last quarter, which traditionally generates the highest sales.’ Sales are expected to reach app. EUR 103m. Earlier forecasts predicted amounts of EUR 105.6m to EUR 107.6m. A detailed report for the 1 st nine months of 2013 will be published online at http://kaufhaus.ludwigbeck.de in the ‘Interim Reports’ section under ‘Financial Publications’. Key Figures of the Group
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About
LUDWIG BECK
Its flagship store – the Store of the Senses – is located at Marienplatz in the heart of Munich. On seven floors LUDWIG BECK presents international fashion, leather goods and accessories, and exclusive cosmetics. With more than 120,000 songs, it offers the biggest collection of classical music, jazz, world music and audio books of any physical store location in Europe. Launched at the end of 2012, LUDWIG BECK is now offering the extraordinary brand portfolio of its beauty department online at www.ludwigbeck.de . A unique selection of more than 8,000 products featuring more than 80 luxury and niche cosmetics brands awaits online customers. End of Corporate News 17.10.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG | |
| Marienplatz 11 | ||
| 80331 München | ||
| Germany | ||
| Phone: | +49 (0)89 2 36 91-0 | |
| Fax: | +49 (0)89 2 36 91-600 | |
| E-mail: | info@ludwigbeck.de | |
| Internet: | www.ludwigbeck.de | |
| ISIN: | DE0005199905 | |
| WKN: | 519990 | |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart | |
| End of News | DGAP News-Service |
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| 234961 17.10.2013 |