Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • Jul 22, 2008

News Details

Corporate | 22 July 2008 07:00

LUDWIG BECK publishes half-year report and reports earnings increase

Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG / Half Year Results

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Munich, July 22, 2008 – Despite the wide-spread negative consumption mood,
the Munich fashion house LUDWIG BECK (ISIN DE 0005199905) was able to
generate more revenues than the textile retail branch in general which,
according to a ’Textilwirtschaft’ survey had to put up with a 4 % decline
in sales in the first six months of the fiscal year 2008.

Development of sales

The like-for-like gross turnover of the LUDWIG BECK group amounted to €
43.8m (previous year: € 45.1m) in the first half of 2008. This corresponds
to a 2.9 % decrease. The unadjusted gross turnover on group level also
amounted to € 43.8m and fell 5.3 % below last year’s level (€ 46.2m). On
the one hand, the drop in sales can be explained by the excellent results
of last year’s summer clearing sale, on the other hand, cool weather,
rising inflation and high energy prices had a negative influence on the
consumers’ buying mood. Also, sales of preceding years still included the
branch at Perlacher Einkaufspassagen (pep) which was closed as per December
31, 2007.

Earnings situation

In the first six months of 2008, the LUDWIG BECK group reported net profits
at group level in the amount of € 17.6m, i.e. 3.2 % less than last year (€
18.2m).The net profit margin could be increased by 1.1 percentage points in
comparison to the last year and reached 47.9 % (previous year: 46.8 %).

Even though the fashion house suffered a drop in sales, EBIT could be
increased by 23 %, from € 1.1m in the previous year to € 1.3m. Income from
ordinary activities (EBT) increased by € 0.4m, from last year’s € -0.6m to
€ -0.2m.

In comparison to the last year, the deficit in the accounting period could
be reduced from € -0.3m to € -0.1m.

Outlook

The year 2008 is still in the shadows of the international financial crisis
and continuously rising oil prices. Therefore, expectations for an economic
pick-up were curbed once again as indicated by the latest survey of the
Center for European Economic Research (ZEW). According to the ZEW forecast,
world-wide economic risks like the high oil price, the strong Euro, the
crisis in the USA, the prime rate increase by the European Central Bank
(EZB) and sluggish domestic consumer demand will burden German enterprises
also in the coming six months. As the Association for Consumption Research
(GfK) observed, the propensity of private consumers to buy is at its lowest
level in three years; the Association only expects a 0.5 % increase for the
current fiscal year.

The Main Association of the German Retail Trade (HDE) forecasts an
inflation-adjusted minus of approximately 1 %.

'Of course our business development has been affected by the overall
negative trend in the branch and low spirits among consumers', Dieter
Münch, Chief Financial Officer at LUDWIG BECK AG explains. 'But our ’Store
of the Senses’ at Marienplatz, in the very center of Munich, is a pearl
alluring visitors with exciting, exclusive shopping worlds stimulating
fresh demand ', Dieter Münch continues. 'Therefore, we are optimistic about
the second half of 2008', Dieter Münch concludes.

On that basis, the Executive Board once again confirmed the published
target figures for the total fiscal year 2008.

The comprehensive 6 months’ report is simultaneously published on the
Internet under www.ludwigbeck.de/financial publications. The printed
version will be available as of July 30, 2008.

in €m 01.01.-30.06.2008 (01.01.-30.06.2007)
Gross sales (including VAT) 43.8 (46.2)

Net profits 1) 17.6 (18.2)

Earnings before interest, taxes, depreciation and amortization (EBITDA) 3.1
(2.8)

Operative result (EBIT) 1,3 (1,1)

Deficit in the accounting period -0.1 (-0.3)

Result per share (in €) 2) -0.11 (-0.15)

Investments 3.5 (1.7)

Employees (at relevant date, June 30) 3) 519 (533)
Apprentices (number) 38 (42)

1) Net proceeds from turnover less costs of material used 2) Reference
figures: 3.4m shares in 2007, 3.7m shares in 2008 3) without
apprentices

Investor Relations contact:
esVedra consulting GmbH
Metis Tarta-Steck
t: +49 89 288 08 – 133
f: +49 89 288 08 – 149
metis.tarta-steck@esvedra-consulting.com

Group accounting contact:
Ludwig Beck am Rathauseck
Jens Schott
t: +49 89 2 36 91 – 798
jens.schott@LudwigBeck.de

22.07.2008 Financial News transmitted by DGAP

Language: English
Issuer: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG
Marienplatz 11
80331 München
Deutschland
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

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